The 21 Principles of Dokkodo Applied to Trading
The way of walking alone
Miyamoto Musashi's 21 principles of Dokkodo, while originally intended for the path of a samurai, offer profound insights applicable to the world of trading. Here's how you can apply each of the 21 principles to your trading.
The 21 Principles of Dokkodo Applied to Trading:
Accept everything just the way it is: In trading, this means accepting market conditions, whether they are favorable or not, without letting emotions cloud your judgment or dictate impulsive decisions.
Do not seek pleasure for its own sake: Avoid trading solely for the thrill or gratification of winning, which can lead to impulsive and risky behavior. Instead, focus on disciplined execution and consistent profits.
Do not, under any circumstances, depend on a partial feeling: Don't make trading decisions based on incomplete information or gut feelings. Always base your trades on a well-defined strategy and objective analysis.
Think lightly of yourself and deeply of the world: Focus on the market dynamics and global economic factors rather than letting ego or personal biases influence your trading decisions.
Be detached from desire your whole life long: Avoid becoming attached to specific trades or outcomes, which can lead to holding losing positions or exiting winning ones prematurely.
Do not regret what you have done: Learn from your trading mistakes without dwelling on them. Each loss is an opportunity for growth and refinement of your strategy.
Never be jealous: Avoid comparing your trading performance to others, which can lead to making ill-advised decisions based on envy.
Never let yourself be saddened by a separation: Accept that losing trades are an inevitable part of trading. Don't let losses emotionally affect you or disrupt your trading plan.
Resentment and complaint are appropriate neither for oneself or others: Avoid blaming others or market conditions for losses. Instead, focus on improving your own trading process and execution.
Do not let yourself be guided by the feeling of lust or love: Don't let emotions like greed or fear dictate your trading decisions. Trade based on your strategy and analysis.
In all things have no preferences: Avoid having a fixed preference for specific markets or trading styles. Remain flexible and adaptable to changing market conditions.
Be indifferent to where you live: Your geographical location should not influence your trading decisions. Focus on the market, not your surroundings.
Do not pursue the taste of good food: This principle encourages discipline and self-control. In trading, it can be interpreted as avoiding excessive or impulsive spending of your profits, and instead focusing on reinvesting and growing your trading capital.
Do not hold on to possessions you no longer need: Regularly review and discard trading strategies or tools that are no longer effective or relevant. Stay lean and focused on what truly adds value to your trading.
Do not act following customary beliefs: Don't blindly follow popular trading advice or trends. Develop your own unique trading style based on your research and analysis.
Do not collect weapons or practice with weapons beyond what is useful: Focus on mastering a few effective trading strategies and tools rather than trying to learn everything at once. Prioritize depth over breadth.
Do not fear death: Don't let the fear of losing money paralyze your trading. Manage your risk appropriately and accept that losses are a part of the game.
Do not seek to possess either goods or fiefs for your old age: Focus on building long-term sustainable wealth through trading rather than seeking quick profits or short-term gains.
Respect Buddha and the gods without counting on their help: Have a disciplined and structured approach to trading, but also acknowledge the unpredictable nature of the markets. Don't rely solely on luck or external factors for success.
You may abandon your own body but you must preserve your honor: Maintain integrity and ethical conduct in all your trading activities. Your reputation and credibility are essential.
Never stray from the Way: Develop a strong trading plan based on these principles and adhere to it consistently. Discipline and focus are paramount in achieving success in trading.
By embracing these 21 principles, traders can cultivate a disciplined mindset, enhance their trading psychology, and navigate the complex world of trading with greater clarity and effectiveness.