The Tao of Zen Trading

Taoism and Zen are two profound Eastern philosophies that originated thousands of years back, but still hold relevance even in this post-modern economy. These are not mere philosophies for those who tread the spiritual path, but sources of powerful strategies that can be applied to every walk of life to maximize productivity, efficiency, and happiness.

While Zen is best known for its minimalistic approach, Taoism is best known for its concept of effortlessness. So why not combine both these attributes and use them in forex trading?

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As you know, in Swing Trading, the trader waits for the right opportunity to trade and keeps his trade to the minimum. This is one area where you can apply time-tested Zen principles to enhance your efficiency. And that is not all, when the principles of effortlessness contained in Taoist teachings are combined with these minimalistic principles, you can take your swing trading to whole new heights. So let us look into some of the Zen and Taoist principles that can change the way you do swing trading.


Choosing suitable currency pairs play a key role in helping you achieve success consistently. Therefore, in order to optimize the benefits of the currency pair that you choose to trade with, you may (a) limit the number of currency pairs to just two and (b) Choose those currency pairs in such a way that they are correlated currency pairs. This is Zen Minimalism in action. This is not just minimizing the currency pairs, but minimizing with the aim of maximizing productivity.

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Minimizing your currency pairs to two will give you enough time to understand their movements in-depth and choose strategies that hit the bull’s eye. Having a good understanding will help you to use the knowledge as confirmation bias of the market sentiment before entering a trade.


When it comes to forex trading, there is nothing called a “good opportunity.” Whether a specific situation in the market is an opportunity or not depends on the way a trader perceives it. Or in other words, opportunities are just projections of the minds of the traders, and nothing else! A trader arrives at the conclusion whether a market situation is a good opportunity or not based on (and limited by) the knowledge, skills, and experience he has accrued over time. For someone who has underwent better training, for someone who has a keener eye, a market situation that does not offer much in the eyes of others may appear as a very promising one. Therefore, drop the idea of “waiting for good opportunity” and instead work constantly and incessantly on improving your skills and knowledge so that every situation would appear as an opportunity for you.

A poor trader is one who fails to identify good opportunities

A good trader is one who cashes in on good opportunities

But the best trader is one who has transcended the concept of good/bad opportunities


Most traders hold onto a wrong concept that by making their systems increasingly complex and difficult, they can outmanoeuvre others and take positive steps to towards improving their trading. This is a misconception. This will only drain them of their energy and time. They analyse too many charts, use too many indicators, spend too much time thinking, and trade too much only to lose whatever they have gained. If you look at traders who consistently succeed, you can see that they embrace the Taoist principle of simplicity. They do not complicate things, they keep it simple. Even in a complex situation, they try to see simplicity. Making it simple helps them to focus better and achieve clarity in whatever they do.

Prefer simplicity over complication

See simplicity in complex situations

Embrace and remain in simplicity



Forex trading is one career which gets greatly influenced by your life’s outlook, philosophy, and the like. You cannot be an altogether different person when you sit in front of your laptop for forex trading. Therefore, if you are really serious and committed about your forex trading career, then the only long-term solution is to make minimalism and effortlessness your life motto. Practice minimalism in your life. You will automatically be prompted to discard all unnecessary indicators and analysis in your trading. Practice effortlessness in your life, go with the flow. You will not be persuaded to work too hard on your forex goals, instead you will learn to adapt with the market and get the best of it.

Remain clever by learning less

Achieve more by doing less

Solve complexities by embracing simplicity

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Posted on Categories Technical

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