Whether you are into Forex, Crypto, Stocks, CFD, etc, I realized that trading is not just about winning or getting wealthy, it is indeed a spiritual journey.
A few years back, pre-pandemic, together with close friends of mine, we have been sharing trading practices and techniques regularly. We share winning and losing trades/strategies, as well as the lessons learned. We also discuss the “trading intangibles” (e.g. emotions, psychology), which are also equally important in the practice.
In one session, a friend was talking about patterns, more specifically, fractals – a recurring geometric pattern that is repeated in all timeframes (got this definition from this link). Whether you are in a 5-minute chart or daily, this geometric pattern seems to repeat itself. This reminded me of the Microcosm-Macrocosm analogy, or more aptly of the (2nd HT) principle, which is,
As above, so below.
or in the Christian perspective,
“On earth as it is in heaven.”
It was at that point that I realized that trading itself is a spiritual journey. Then I asked myself,
“If it is indeed a spiritual quest, how would you know that you are on track?”
“What are the milestones?”
I had to look not only into my trading experience but also into successful traders’ journeys. With that, I was able to come up with The 7 Stages on Trading as a Spiritual Journey, which follows:
Stage 1. The Birth
This is the stage wherein you start hearing from people about the stock market (or forex, crypto, etc). You learn that they are earning a huge amount of money, but unbeknownst to you, a lot are also losing huge sums of funds.
Stage 2. The Exploration
With your curiosity, you start researching. You join groups, you attend workshops. You read books. You experiment with different assets, trading strategies, you begin to learn. You explore.
Stage 3. The Emergence of Ego
As you hone your trading abilities, you become confident, and you begin telling people how profitable you are in your trading and with your skills. You talk about it with pride, and of course, there’s nothing wrong with it until you cross the line – when it starts feeding your ego.
For some, they get addicted to the praise and the compliments (and the Facebook likes), but for most, overconfidence creeps in. And when the market owns them, they are crushed. When that happens, others will simply give up. But for some, they would not accept defeat. They will continue to perfect their ways, they will explore new strategies again (and perhaps other assets). There’s nothing wrong with experimenting and practicing, for that is how we sharpen the blades, but unfortunately, the ego will fail them once more. They will be trapped between the cycle of exploration and the fall due to ego. A cycle much like Samsara.
The egoic self will continue to grow as it thrives on fear and greed.
“I cannot fail.”
“I cannot miss out.”
“I have to win.”
Stage 4. Awakening & Awareness
In the never-ending cycle between Exploration and Ego, you start realizing that the market humbles the best of us. We can never control the market. The market will decide on its own no matter how complex your trading setup is. As the famous American billionaire investor and hedge fund manager, once said,
Markets taught me humility.
As you slowly discern that you are not in control of the market, that you have been feeding your ego all along, you begin to be conscious of its presence in you. With that awareness, you have been awakened.
Stage 5. Acceptance & Renunciation
You can never eliminate what you think you don’t have. Hence, as you humbly accept the presence of your egoic self (which is the “false you” that you created in your mind) you begin to renounce it. And every time you feel (by virtue of awareness or mindfulness) that your thoughts or actions are feeding it again, you immediately abandon those thoughts or actions.
Stage 6. Consistent Practice
As you continue in your trading journey, it takes constant practice and discipline not only to improve one’s trading skills but to also keep the ego in check. As the saying goes,
Once you master your “self”, only then you will succeed.
For some, a solitary journey might work but you don’t have to be alone in this undertaking. It is also best that you have accountability partners or groups to help you stay on track.
Stage 7. Legacy & Contribution
For those who have already transcended beyond mastery, earning a hundred thousand or millions no longer matter to them. What they value most now is how to aid in the expansion of humanity’s consciousness.
With the wealth they have amassed, they create projects which unite people, not divide. They continue to contribute to the world and leave a legacy with the hope that humanity will no longer promote war but peace and love.
I believe we all go through these stages, with no shortcuts. The 7 Stages, for me, illustrate how important intangibles are. Most of the time, a lot of us focus more on the technicalities of trading that we forgot about the emotions and psychology involved – which I believe have the greatest impact on the results. I have known people with very simple trade setups, just a few lines, but are now in the “Legacy & Contribution” stage. Their journey was not overnight. It took them years and they lost a lot too, even millions. But the important thing is, they were able to master themselves and now helping people all over the planet.
Sometimes I ask myself at what stage am I in. To be honest, I really don’t know because I don’t actively trade anymore. I am more of a long-term investor, and I use platforms like this. Nonetheless, I believe that the 7 Stages are not only relevant to trading, or in our financial freedom journey. It is equally applicable in all facets of our life as we live each day towards a greater purpose: To leave a legacy of love and contribution.
PS: If you are more of a science person, you can check Dunning-Kruger Effect.
