"You have power over your mind—not outside events. Realize this, and you will find strength."
The Two Lists
Before every trade, write what is up to you (analysis, entry criteria, position size, stop placement, rule-following) and what is not (next tick, news, slippage, whether any single trade wins). Pour energy only into the first list.
Input Indifference
Grade every trade on process adherence, not P&L. A stopped-out trade executed perfectly is a success; a profitable trade that broke your rules is a failure.
The Internal Question
When price moves against you, ask: 'Is this inside or outside my control?' Then act only on the controllable. The rest is noise.
02.
Premeditation of Adversity
Premeditatio Malorum — rehearse the loss before it arrives.
"He robs present ills of their power who has perceived their coming beforehand."
The Morning Descent
Before the session, deliberately visualize the worst realistic outcomes: a full stop-out, the daily loss limit hit, a gap through your stop. Accept each as a real possibility before the open.
Sizing for Serenity
Size every position as if the money is already gone. If a position keeps you from sleep, it is an affront to your tranquility. Cut the size until the heart is still.
Emotional Inoculation
Rehearse the emotional shock of a loss until it feels familiar, not feared. Equanimity comes from removing surprise, not from avoiding difficulty.
03.
Temperance in Risk
Restraint before reward.
"Virtue is the mean between excess and deficiency."
The Fixed Percentage
Risk a fixed percentage of capital per trade—never more, never less. Mechanical consistency protects both account and composure.
Hard Loss Limits
Set daily and weekly loss limits. When hit, close the terminal. No single day, week, or event can be allowed to destroy the account.
The Stop Sanctity
Never move a stop farther away to avoid a loss. The room was defined at entry by the rational self; the emotional self has no vote once the trade is live.
No Revenge Trading
Refuse to increase position size after a loss. A loss is data, not a debt the market owes you. Return to baseline size and process.
04.
Process Integrity
Justice to the plan you wrote when you were calm.
"Objective judgment, now at this very moment. Unselfish action, now at this very moment."
The Calm Contract
Follow the rules you wrote when you were calm. No revenge trades, no 'just this once,' no moving targets after a win or loss.
Judge the Process
Judge the day by how faithfully the process was executed, not by the P&L. Consistency of behavior is the virtue; the outcome is indifferent.
The Pre-Trade Checklist
Do not enter without confirming every checklist item. A trade taken outside the plan is a breach of contract with yourself.
05.
Amor Fati & Continuous Review
Love whatever happens. Every outcome is data.
"Amor fati — love of fate."
Love the Data
Love—or at least accept—whatever happens. Every loss is data, every win is a bonus that does not entitle you to loosen rules.
The Stoic Journal
End each day with a journal focused on process quality, not money. Rate adherence, emotional state, and rule violations. Prevent euphoria and despair from accumulating.
Equal Detachment
Review wins and losses with equal detachment. A winning streak is not proof of genius; a losing streak is not proof of failure. Only the process reveals the truth.
