What is the Zen Trade?
First of all, and to keep you open minded, Zen trading is nothing esoteric!
It is just a name that I chose for a style of trading or investo-trading that results in less stress and work but more profits. This definition of Zen trading comprises all styles of trading that match these goals.
To put it simple, Zen traders just enter a favorable situation and relax. And later they are cashing in on their investment. On average, of course.
Sounds too simple? Right, but it is almost that simple...
There are indeed some strong methods to drain the financial markets the elegant way. And they are not necessarily secret. They are just not so outstanding that it is clear that one should concentrate on just them.
Let's see what a Zen trader is looking for:
Do these methods work? Yes, they work! Of course, with a little help from the best friend of every trader, the stop loss. Zen trading means doing a trade lightheartedly, well knowing that a tight stop (and a sound money management) will not only protect you, but make the trade work on average.
Why does that work?
Note that the penny stock explosion (E) needs some adaption to the stop method, because markets may be illiquid and the software robot (B) has the stop loss built into its algorithm, perhaps indirectly or probabilisticly.
To say it again, Zen trading is nothing esoteric. It is just psychology and math. If you have the right system, you can be calm and confident and you will hear the silent voices of the markets among all screaming loudness.
You will find the
and also the
The reality looks much different for most. At least at times, they begin to lose. If they don't lose money, they lose their positive vibrations by struggling with their trading systems or styles. Some typical patterns of private market warriors look like these:
You could do better...
Just take trading lightly. Do the simple thing, but be active. Don't be the investor hoping for things to finally turn around as planned!
It can indeed be so easy, but most people are not able to see this. And if they hear it, like right here and right now, they may not believe it...
The simplest Zen trade (A) looks like this:
Doing the basic Zen trade is betting on the right trend, but not necessarily at the right time. The right method? A tight stop! Of course, knowing the right time would be tremendously helpful, but that is also nearly impossible. Just accept it. To enter the right trend, typically multiple attempts are necessary. Also accept that. What if you are stopped out and the trend turns around or vanishes? It simply wasn't the right trend then. What if it restarts unexpectedly thereafter? This is the way the market works. Accept it and reenter.
Zen trading the trend in short:
Seen from the Zen angle:
The Zen system for short-term traders of all markets. This is also the more elaborated system for getting safely on board of a long-term trend as described above:
The Zen system for "investo-trading" the stock market:
The laws of probability will eventually get the Zen trader on a true trend and make all small losses back, and much more.
Does Zen trading mean that you have to know it better than others most of the time? No, Zen traders need quite some trades to enter some huge winners.
So, don't be astonished that our free Trend Sigma newsletter doesn't present infallible trading signals! Instead it digs out interesting market situations, possibly working software systems, and alternative trading methods.
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Long living market sync for you,