Trading Rules and the Mitzvot

Posted by Deb | Day Trading Journey,Judaism | Monday 13 September 2010 5:27 pm

It’s been 6 days since I last posted here. The new year, and the weekend, gave me a long break.

Today I had one good position, with 2 contracts, and I got $112.5! I’ve had much better positions not so long ago, but for the last few weeks, that is a good improvement. I hope it is getting back to me, I really want to go back to live trading soon.

During this long break, I have been thinking a bit more about something that I have been thinking about lately: As an observant Jew, I am used to live by rules, the rules of the Torah, known also as the Mitzvot. So why is it so difficult for me to follow the rules of day trading? Why do I find myself again and again breaking my own rules? As a person who is accustomed to live in a more disciplined way, I should be able to have the self-discipline to obey my own rules!

One answer to this, is that I am not 100% sure of my rules. I doubt if if they are correct, if my limit of profit is right for me, if waiting a bit more before quitting a losing position won’t let the market turn around and make the position a prfitable one, etc. I hope that my reading more and more books and articles about day trading will help in this regard, as they all seem to point to similar conclustions: Risk managemnt is essential to good trading, and even if in a few occasions breaking the rules gives you profit, in the long run it is better to have strict risk management rules.

A second answer, I am embarrassed to say, is that in the last few years, since I am a mother, I have been less strict with myself in some of the mitzvot. The Torah itself does give mothers of young kids a break, as they are busy with their children, but sometimes I have stretched it too much. It is difficult to be a single mother of 3, and sometimes my kids and my sanity seem to dictate to me to be more lenient or relaxed about some of the mitzvot. Now my kids are not infants any more, and I suppose I should be more strict with myself again, but it is sometimes hard to get back to it.

In this regard, acquiring the discipline to go by the trading rules may be beneficial to me also in my other areas of life. Maybe I will learn again the art of discipline, which will help me also in my religious life. That can be a very good side-effect of trading!

rules checklist


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