Before presenting these ideas, the writer believes that perhaps no one would associate Stoicism and meticulous techniques with crypto or forex trading. Stoicism, an ancient philosophical school of thought dating back to ancient Greece, encompasses a system of ideas and philosophies through which humans perceive the essence of the world. On the other hand, forex trading is a very specific activity—a way to earn money from the foreign exchange market. From the writer’s perspective, the life philosophies of Stoics share valuable similarities with other philosophical schools, particularly in promoting emotional balance and harmony for individuals. When these systems align, they help create more specific life philosophies. These life philosophies can be choices for anyone to apply to their own lives, aiming to bring about a sense of fulfillment. Therefore, they can also be applied in specific activities such as crypto trading or forex trading. Hopefully, you will find some empathy and discover many vivid and reasonable examples through the application of psychological techniques to control emotions during trading. Consider viewing trading as a visual illustration of how applying Stoic emotional adjustment techniques can be effective in trading, and subsequently, in other similar activities.

Why discuss psychology in forex trading? Do you think that success in the foreign exchange market depends entirely on trading systems or trading strategies? Not quite! In reality, it primarily depends on your mindset and how you think and react to the market (trading emotions). However, most advice on trading—FX-related content—does not focus on this aspect. Many people emphasize trading techniques, while others recognize the importance of emotional factors in trading. They often become disappointed when they encounter failure due to their inability to control emotions, which is a common occurrence. Consequently, they consider pre-programmed tools, algorithms, or robots. But if an AI tool or robot could truly replace you entirely, allowing you to earn money automatically, would you easily seize that opportunity, or would it remain reserved for the wealthy?

Before presenting these ideas, I think that perhaps no one would associate Stoicism and meticulous techniques with crypto or forex trading. One thing is certain: Stoicism is one of the ancient philosophical schools of thought, originating in ancient Greece. It encompasses a system of ideas and philosophies through which humans perceive the essence of the world. In contrast, forex trading is a very specific activity—a way to earn money from the foreign exchange market.

From my perspective, the life philosophies of those who follow Stoicism share valuable similarities with other philosophical schools. Particularly, it benefits individuals in achieving emotional balance and harmony in life. When these systems align, they help create more specific life philosophies. These life philosophies can be choices for anyone to apply to their own lives, aiming to bring about a sense of fulfillment. Therefore, Stoicism can also be applied in specific activities such as crypto trading and forex trading.

I hope you can empathize to some extent and find many vivid and reasonable examples through the application of psychological techniques to control emotions while trading. Consider viewing trading as a visual illustration of how applying Stoic emotional adjustment techniques can be effective in trading, and subsequently, in other similar activities.

Now, why discuss psychology in forex trading? Do you think that success in the foreign exchange market depends entirely on trading systems or trading strategies? Not quite! In reality, it primarily depends on your mindset and how you think and react to the market (trading emotions). However, most advice on trading—FX-related content—does not focus on this aspect. Many people emphasize trading techniques, while others recognize the importance of emotional factors in trading.

Before discussing these matters, the writer thinks that perhaps no one would associate philosophies and Stoicism with crypto and forex trading. Indeed, "Stoicism is one of the ancient Greek philosophical schools, encompassing a system of thoughts and philosophies about the nature of the world. Meanwhile, forex trading is a very specific activity – a way to make money from the foreign exchange market. From the writer's perspective, the life philosophies of Stoics have many similarities and valuable aspects in common with other philosophical schools, particularly beneficial for harmonizing and balancing human emotions in life. When systematized, these philosophies help in formulating more specific life philosophies. These philosophies can be anyone's choice to apply in their own way, bringing about a sense of fulfillment. Thus, they can also be applied in specific activities like crypto trading and forex trading. The writer hopes you will empathize and find many lively and rational issues through examples of applying these psychological techniques to control emotions while trading. Try to see, taking trading as a direct illustration of how using Stoic emotional adjustment techniques can be effective in trading and similarly applied in other activities.

Why talk about psychology in forex trading? "Do you think success in the forex market depends entirely on the trading system or strategy? No! In reality, it largely depends on your mindset and how you think and react to the market (trading emotions). However, most trading advice – FX media content – does not focus on this. Many people emphasize trading techniques, and many also consider the emotional aspect in trading, but they are often disappointed due to failures caused by not mastering common emotions. Therefore, they think of pre-programmed tools, algorithms, robots... But if AI or robots could entirely replace you, to earn money automatically, would you easily have the opportunity to buy it or is it only for the wealthy?

Certainly, human emotions and flexible decision-making in trading activities remain irreplaceable by machines. That is why we must find ways to control emotions, or more accurately, how to direct emotions positively, especially beneficial for trading activities.

Before emphasizing that psychology is a key issue for success in trading, the writer still thinks that technique is no less important. The writer's view is that psychology and technique in trading are inseparable, lacking either will not yield good results in your trading. Therefore, these contents, the writer believes, will be more suitable for those who have already grasped at least the basics of trading techniques.

The psychological techniques of Stoics aim to bring calmness to people in life. Your calmness in trading, whether you win or lose, is very beneficial. If you win, an inevitable psychological state in you often arises, which is joy, which may lead to subjectivity, arrogance, or a new excessive ambition.

Conversely, if you lose, the immediate psychological reflex is disappointment, dissatisfaction. A thought will start in your head, urging you to "avenge" the lost (loss) orders, leading to hasty decisions, no longer calm, resulting in more losses in subsequent orders.

"Truth must have a specific and pragmatic value. However, its pragmatism should not be the sole purpose attracting all of our thoughts and feelings. Often, truths without practical characteristics are doubly pragmatic: when people seek them with a calm and unselfish heart, the truth appears more clearly and correctly. Humans, often swayed by emotions, tend to confuse truth with what they wish to be true. The desire to see 'one's own truth' materialize often leads to its distortion." (The Art of Thinking - Nguyen Duy Can)

Fate

The primitive era engravers believed in fate. However, it's essential to distinguish between the theory of future fate, current fate, and past fate!

Speaking of fate and particularly applying its spirit to become "fate in trading" often meets with vehement opposition. It sounds somewhat negative and far-fetched! The idea that "life is a rigged horse race with predetermined winners and losers" can make one question the effort put into trading, striving to learn and find ways to win in the market. Why bother if you're predestined to fail?

Despite believing in predestination, the most notable point here is: whatever happens must happen – but fate does not control the future. That is, they do not just sit back and accept whatever comes their way in the future. Instead, they always look for ways to influence the outcomes of future events.

This point is what the author finds most convincing in the theory of Stoic fate. It means that while fate exists, it follows the "theory of past fate." We should accept that the past cannot be changed. Dwelling on it is futile. If losses have occurred, they have happened. You cannot change them in the past. However, you can improve and do better than what happened in the past by learning from experiences, trading techniques, adjusting psychology, emotions, and the future will be different, depending on the values you accumulate. A trader capable of Stoic finesse will see losses very lightly. These losses are controlled within an acceptable range, completely unshakable, and they are likely to regain balance quickly in the future.

Moreover, you should also pay attention to the theory of current fate. Clearly, we cannot impact the present through our actions (as the present is this moment, right when the action occurs in a fraction of a millisecond, it becomes the past). But as mentioned, the best way to achieve satisfaction is not to satisfy any arising desire within us. We cannot dream and perform to double or triple our account right now, as it will only bring about your dissatisfaction because you will not be able to achieve it. Learn to be content, happy, or accept what we currently have, but focus on our actions in the next moment - the future. Cherish the present moment because you own it, and you are living in it.

Therefore, although following the theory of fate, Stoic philosophers advise you not to follow the "theory of future fate" because this theory believes what you believe in about the defaults of the future is a mistake. It's like you're forcing yourself to stop in a state that has happened in the past; if you have not succeeded in trading, you will think that fate has arranged it for you, and you have no reason to try to improve anything in the future, then there's nothing to discuss or do!

Self-Restraint

To practice techniques that bring calmness in all situations, even when you are poor, rich, winning, or losing... Stoic philosophers advise you to "practice living in hardship." These are self-created experiences to remind yourself to appreciate what you have. You can try trading with very small orders. You will see how people with small capital earn modest income and are patient every day. You can also try to live frugally for a while like other needy people, and you will feel very comfortable in the days before... Such voluntary suffering will have the effect of reinforcing resilience when you encounter difficulties, losses and will cultivate more appreciation for what you have achieved (if any) or the ability to stay calm and courageous every time you face a challenge in trading.

Contemplation

To progress in Stoic practice, as with other activities of life, in trading, we should periodically reflect on the trades we have made, how we react to those results. Following the spirit of Sextius – a Stoic philosopher, we can ask ourselves, "What did I do today to escape losses, what improvements have I made, why? And if it's wrong, what should we have done? Daily contemplation will gradually yield useful experiences. For example, lessons:

Play the role of a trading participant and an observer to view the issue from many angles.
Continuously ask questions, have these orders been entered at the right time, are they hasty, or if entered, have they passed the favorable time…
Are these actions on the right track yet, or have they exceeded your acceptable profit and loss plan…
Has today's profit reached the target? (If achieved and the price chart is sideways, accumulating, then you should stop)….
There are many lessons from Stoic philosophers that can be applied to trading, but the sign of progress is usually shown when we have calmness, alertness in all situations; we no longer boast, blame, criticize, praise anyone... we will take responsibility for the trading results from our actions and restrain excessive desires.

A true trader in the Stoic direction will become humble and comment less on the methods of other traders. They are less likely to show off their accounts for bragging, eliminating the competitive spirit...

Finally, a sign of progress for a trader who has mastered Stoicism is reflected in actions being more effective than words. It is shown in more stable results and the victories achieved. Although it may seem slower than expected, the results of practicing emotional Stoicism techniques will surely bring success sooner or later.

Reference material: "Stoicism - A Lifestyle of Resilience and Tranquility", author William B. Irvine.

The article reflects the personal opinions of the author and is not intended to encourage readers to regard the content below as a standard or objective issues regarding trading. We hope that it will provide you with additional information and insights into this field, or help you form your own perspectives based on the arguments presented; or perhaps you will find some degree of empathy with the author's viewpoints.

We also hope that new investors will always be extremely cautious and ensure they have solid trading skills before entering the market to avoid possible risks as best as they can!

XYZBuy Team