Some of us dream about wealth. A million dollars could wipe out medical bills that never seem to end after a long illness (I have personal knowledge of this), provide care for aging parents, pay for a home with enough room to breathe, or allow us to quit that dead-end job and pursue a longed-for vocation as a trader — or even take an endless vacation. How wonderful to earn your living while always more or less on vacation — that choice is available to a trader.

In a more charitable vein, we could give to a crisis pregnancy center, or send money to the impoverished people of Haiti. We might even assist the homeless person who pushes a beat-up grocery cart in front of the bank downtown. It would not dissolve all the world's ills, but money could certainly help.

A dream-come-true for one of our trading friends was winning big when he was long a bunch of wheat contracts and rode it from low to all-time high. He did the same thing in gold futures, which just sweetened his fortunes all the more. But prior to those great wins he had lost $4.8 million dollars. He referred to the entire experience as a "hard fall." Another trader I know lost 6.2 million when the market crashed in 1987. He called his experience a "total nightmare." Both of these traders found out that how we view money determines what happens to the dollars that pass through our hands. For Christians, what God says about finances should govern our financial choices, our lifestyle, and our giving.

What does God actually think about money? Does he expect vows of poverty? Is he demanding communal living as in the book of Acts when Christians shared all resources? Does he have a particular fondness for Marxist economic equality, or does he honor a capitalistic system? Does he advocate zero debt, or does he see a place for a certain type of debt? Is he a stickler about giving the first ten percent, and does he promise wealth in return? Are there biblical principles that apply universally to all societies throughout time when it comes to finances? Typical answers to these questions often result in formulistic living. Formulas for following God eventually veer into legalism fueled by fear or presumption.

Our fears cause us to depend on man-made rules for security. Presumption assumes that God is manipulated by our actions. The issue of wealth is no exception. Every aspect of handling money — how we get it, how we go about keeping it, our motivations for giving, and how we can survive financial and emotional fallout when dealing with wealth — is influenced by whether or not we are centered in God. Our approach can be just as flawed as is the process of turning trade winnings into loss.

Getting It

Money is acquired by various means — employment, entrepreneurship, investing, inheriting, gambling, borrowing, selling (think eBay), trading, and so on. For Christians, issues of honesty dictate how we acquire finances. Beyond that, Christians may feel ill at ease with money because wealth is often associated with greed.

A false sense of spirituality through poverty keeps money at arm's length for the wrong reasons. Dave Ramsey, author of Total Money Makeover, states, "There is a negative mind­ set justifying money mediocrity that is maddening. Wealth is not evil, and people who possess it aren't evil by virtue of the wealth.... If you take the stand that managing wealth is evil or carnal, then by default you leave all the wealth to the evil, carnal people."

In Luke 16:9, Jesus instructs us to use wealth: "I tell you, use worldly wealth to gain friends for yourselves, so that when it is gone, you will be welcomed into eternal dwellings." In verse 11 he adds, "So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches?" He states this just before warning us that we cannot serve both God and money (verse 13). Using money as your servant is not the same as becoming a servant to money.

The idea that money equals greed may be related to what Paul Graham calls the "pie fallacy." In his article "How to Make Wealth," Graham explains that those who see wealth in terms of a limited pie think that giving a piece to one person deprives another. This is often true about specific "pots" of money, but not wealth. He supplies an example of restoring an old car: "In doing so you create wealth. The world is — and you specifically are — one pristine old car the richer. And not just in some metaphorical way. If you sell your car, you'll get more for it.... You haven't made anyone else poorer. So there is obviously not a fixed pie."

Once Christians get beyond the pie fallacy, they are able to see wealth as a tool God can use. Instead of believing that the creation of wealth deprives others, generating wealth becomes a means for expanding ministry.

Viewing money solely in terms of "filthy lucre" limits how we obtain finances. For example, it may cause us to view trading or investing as "cheating" or gambling, and keep us from wisely taking advantage of investment opportunities.

Christians hear a mixed message from pulpits, with exhortations about giving alongside implications that money is evil. We cannot give what we should not have to begin with. A consistent biblical view regarding the acquisition of wealth prevents this kind of confusion.

Keeping It

While the two traders mentioned at the beginning of this article had trouble keeping their millions, my friend Arnie (not his real name) did not. After winning $220 million by making excellent trades, the first thing he did was to build a team of financial advisors. Then he studied the lives of others who had had great wealth and then lost it, and examined what went wrong in their experiences. We might think that the larger amount is what kept him out of trouble, but the facts indicate that his financial planning played the significant difference.

Errors about Christian giving are abundant, from the teaching that if we give money to God, he is obligated to reward us, to the paralyzing fear that God will not supply all our needs if we give to his cause. In contrast to presumptuous and fear-based giving, Dave Ramsey explains the joy of giving. "Giving is probably the most fun you will ever have with money. FUN and recreation is good, but you will tire of golf and travel, and if you eat enough, lobster starts tasting like soap. INVESTING is good, but going around and around that Monopoly board eventually loses its appeal.... Every mentally and spiritually healthy person I've met has been turned on by giving as long as it didn't mean his own lights got cut off."

When we express ourselves creatively through finances as God intended, the act of giving becomes a delight instead of an obligation or a manipulation. There is no set formula to giving. Listening to the Spirit of God will cause us to "purpose in our hearts to give." Mix joy with purpose, and this often translates into giving more than the Old Testament standard of ten percent (Malachi 3:10).

Most of us think of giving as a realm for non-profit organizations. This is certainly true. Ministries would not exist without monetary contributions. Consider also creative alternatives such as for-profit business with a goal to provide jobs and opportunity for the underprivileged. Uniting what is often seen as "secular" business with Spirit-led problem-solving opens fresh doors that provide ongoing benefits for ministries. Generating wealth to help others is one way to partner with God in changing the world. Equipping them to generate their own wealth is an even better way. While wealth is temporal, giving is the way we can "take it with us." Creative giving invests in changed lives, both now and for eternity.

Surviving It

Financial issues are not just about money. They play nasty games with our emotions and create heartache. The Apostle Paul handled both want and wealth with an open hand towards God. "I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want." (Philippians 4:12).

Gratitude and contentment are key ingredients to emotional survival. Legalism brings tension, but a biblical view of finances frees us to explore creative ways for God to use money in and through our lives. Avoid a religious sour grapes mentality: "God must know I can't handle wealth. That's why he doesn't give it." As one wannabe trader put it, "Why not ask God to develop qualities in us so that he can trust us with wealth?"

Consider the story of Joseph in the book of Genesis. God used a dungeon experience to prepare him to help save many lives as wealth passed through his hands. Do you see a need around you that tugs at your heart, but it requires finances you don't have? Ask God to teach you what you need to know in order to fill that need.

Unlike many winners whose winnings no longer exist, we can reject the fear and presumption that drive the secular and also the religious world. We can embrace the Creator of creative opportunities. Avoiding pat formulas or paralyzing fears, we look to God himself. Deuteronomy 8:18 states, "But remember the Lord your God, for it is he who gives you the ability to produce wealth." Our walk with God will guide us in the acquisition, investment, and giving of wealth so that we can live eternally knowing that we have employed our finances in expanding the Kingdom.

As a trader, what kinds of fear do you have? Are you afraid of losing money? Are you afraid you will miss a move? Are you afraid of losing face? Are you afraid to face who you really are? Are you afraid of disapproval by your mate, relatives, or friends? Are you afraid that trading is sinful?

The Bible has a lot to say about fear.

"An anxious heart weighs a man down..." (Proverbs 12:25, NIV).

We regularly hear from traders whose fears place them in a state of anxiety. Traders constantly send us questions and statements that reflect their fears. Perhaps you do not realize the many ways that fear expresses itself. For example, a question we frequently receive is: "Can I make a living trading?" Now turn that question around and it really says: "I'm afraid I might not be able to make a living as a trader!"

Sometimes the fear is expressed as a statement: "A good trade comes along and I can't make a decision. I sit there paralyzed." Turn that statement around and it says, "I'm afraid to make a decision that could end up hurting me."

Take a look at some of the questions we receive. Then turn them around and you will see the fear, anxiety, and doubt. Here are two more examples:

Go ahead! Try it with these other questions and statements that derive from fear.

Questions that come up:

Statements that arise:

I could go on and on with these, and I'm positive I didn't list many that you can think of. What I want to concentrate upon here is what the Bible says about fear and, most of all, how the Bible says you can cure it.

One wholesome and constructive way to deal with fear is to look to God for deliverance from your fears.

"I sought the LORD, and he heard me, and delivered me from all my fears." (Psalm 34:4).

What this is saying to those willing to believe it, is that if you seek God in prayer and tell Him your fears, He will help you to see from where they are derived. God will not just simply remove them; rather, He will reveal to you where your fears are coming from, including the flaw in your character that allows you to be afraid, or the emotions you are suppressing that are holding you in bondage to fear.

"Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God. And the peace of God, which transcends all understanding, will guard your hearts and your minds...." (Philippians 4:6-7).

The quote above is actually a formula for getting rid of fear. But there are other things you can do. Elsewhere the Bible says that pride precedes a fall. So you must avoid being prideful in your trading. Check it out:

"Humble yourselves, therefore, under God's mighty hand, that he may lift you up in due time. Cast all your anxiety on him because he cares for you." (1 Peter 5:6-7) (Also see Psalm 55:22-23)

The possible causes of anxiety and fear are many: conflict, health problems, dangerous situations, death, unmet needs, spiritual problems, false beliefs, etc.; but for traders, it is the unpredictability of price movement that brings about the greatest amount of anxiety and fear.

According to the Bible, there is nothing wrong with realistically acknowledging and trying to deal with the identifiable problems of life. To ignore danger is foolish and wrong. But it is also wrong, as well as unhealthy, to be immobilized by excessive worry. Such worry must be committed in prayer to God, who can release us from paralyzing fear or anxiety, and free us to deal realistically with the needs and welfare both of others and of ourselves.

Here are some general, common sense suggestions for those weighed down with fear, anxiety or worry:

LAWLESSNESS IN YOUR LIFE — Sometimes fear and anxiety are the result of your own failings and guilt. If you have committed a wrong or done anything bad, your fear and anxiety is probably from God and your own conscience trying to get your attention. You need to make some changes, confess to yourself and to God what you've done wrong, seek God's forgiveness, and set it right. There is a balance in this. God is a loving and forgiving God, although He is also a righteous God. If you have been raised in a "hellfire and brimstone" "God is going to get you" religious atmosphere, you may need to study the Bible to discover the true nature of God. You may be carrying around an unnecessary burden of guilt (leading to fear) trying to atone for your own sins instead of turning them over to God in faith.

SLEEP — Humans generally need 7 to 9 hours of sleep per day. Sleep deprivation can increase anxiety. Get enough rest. If you cannot sleep, you may need to seek God's help, and perhaps that of a health counselor or a physician.

BE MORE REALISTIC — Many people are worried and anxious about events that will never actually happen to them. Relax. Focus on today. Take life one day at a time. Take your trading one trade at a time. When trading, focus your attention on the "now." Do not become distracted by thoughts of other things.

LISTEN — to relaxing, soothing music. There is some great music available, classical and modern, that can help you focus on God and leave your fears and worries behind. It may also help to listen to uplifting, encouraging speakers and teachers.

FUN — If at all possible, do something that you enjoy. It is good to get some recreation on a regular basis. Take a break. Get your mind off your fears and worries, and have some fun. Get away from the markets and your trading screen. Don't become a day trading zombie glued to a computer screen all day. Get a life!

TALK TO SOMEONE — Don't hold all the anxiety inside. It can be a big relief to share your fears and worries with someone else — a spouse, a friend, relative, pastor or counselor. If fear and anxiety are ongoing problems in your life, schedule a regular time each week to talk with someone. That someone can also be God.

TAKE ACTION — If there is something practical and wise that you can do to alleviate the problem or avoid needless danger, take action. Don't put it off. Procrastination will generally raise your anxiety level. Also, regularly spend some time being concerned with other people's problems, especially those of family, friends, and others in the community. This can often help other people, and give you a sense of perspective on your own problems.

EXERCISE — Medical studies show that exercise can help lower anxiety. If you are healthy enough to exercise, try it. Regular brisk walks, running, swimming or other exercises can be real stress reducers.

PROFESSIONAL HELP — There are various organizations which provide help for people with anxiety attacks, including the Midwest Center for Stress and Anxiety (stresscenter.com) which provides self-help. You can search for information and assistance on the Web using keywords such as: anxiety, panic attacks, agoraphobia. You should be able to find local help by consulting your pastor or physician.

GOD'S METHOD FOR GETTING RID OF FEAR — The Bible states that LOVE drives out fear. How can we apply this simple statement to our trading?

On the human level, the only way you are going to "love" anything is if you receive goodness and kindness from whatever it is you learn to love. Love is something learned through positive experiences.

However, most aspiring traders do not experience kindness from the markets. Instead they are treated rather cruelly. Losses hurt. Loss of face and loss of money lead to a loss of confidence, both in one's self, and in what you are doing. Therefore, the only way you can learn to love trading the markets is to make sure you have positive experiences with them. What is needed is the courage that comes from conviction.

Courage of conviction requires patience and diligence. The Bible says, "The hand of the diligent makes him wealthy." But what do we see among aspiring traders? We see exactly the opposite. Instead of patiently and diligently searching for what truly works, wannabe traders rush into the markets. They are in a hurry to "make money." How many do you know who are willing to sit quietly and study the markets for perhaps as much as a year, searching to figure out how it all works?

By searching, I don't mean reading lots of books, some of which tend to present the agenda of someone who never actually made it as a trader. By searching, I don't mean sitting for hours backtesting with some indicator. At best, all you can learn from playing with indicators is how the indicators work. What you really need to know is how the market works. You need to know what causes prices to move.

There are many types of fear that can plague traders. 

There are more than just the ones shown above.  What can you do about fear?  What steps can you take to overcome it?

The possible causes of anxiety and fear are many: conflict, health problems, dangerous situations, death, unmet needs, spiritual problems, false beliefs, lack of self-confidence, lack of faith in the way you have chosen to trade, etc.; but for traders, it is the action of price movement that brings about the greatest amount of anxiety and fear.

We need to create a consistent routine that will enable us to execute our trades according to plan, and without hesitation even after experiencing a string of losing trades. Trading is a business of following rules.

Studying the market itself will eventually bring understanding. Understanding will, in turn, bring success. Success will bring rewards, and suddenly the market will be to you what it actually is: an impersonal arena in which those with understanding get paid to trade. With understanding, you will trade wisely. With understanding, you will see how simple trading can actually be. With understanding, you will garner money from the markets. With the successes you have in the marketplace, you will develop the courage of your convictions. Because trading will give you pleasant experiences, you will begin to love trading; and with love you will no longer have fear.

However, don't confuse love with addiction. Many traders who are often losing, having one bad experience after another, often for many years running, say that they love trading. What they really mean is that they have an addiction. The addict may hate what he/she does. But they cannot stop what they do because they are addicted to their habit. The addict lives in fear, often admits hating the habit, but continues to engage in the addictive behavior despite the fear and pain it brings. If that is you, there is a source of help — help from a power greater than your own. You will find that power and help when you seek God. The Christian Bible says it this way:

"Now may our Lord Jesus Christ Himself, and our God and Father, who has loved us and given us everlasting consolation and good hope by grace, comfort your hearts and establish you in every good word and work" (2 Thessalonians 2:16-17).

The following is the course I followed to overcome fear:

BIND THE SPIRIT OF FEAR FROM YOUR MIND!

One of the first things that attacks your mind when, you face any financial crisis or decide to trade the markets, is the satanic spirit of fear.

When unexpected situations arise; bad fills, mistaken entry in the wrong direction, a sudden explosion or melt-down of prices that catches you going the wrong way, or order entry errors that cost you money—any of these can happen and when they do fear begins to torment your mind.

You face fear of losing money, losing face, missing a trade, having insufficient funds in your account to be able to have staying power in the market.  You face fear when the thought of losing the money that you worked hard to accumulate might put you in a position where you are unable to take care of basic necessities for yourself and your family: food, clothing, housing and transportation.

You face fear of losing your income and having no way to provide for yourself. You face fear of losing your home, going bankrupt and having no place to live.

To reap God's provision in your time of fear you must know how to bind the satanic spirit of fear that keeps you from acting in faith upon the promises of God.

Satan will bind you with fear until you no longer look to God to supply your needs and you begin to lock up inside. He uses fear to stop you from giving to others and thereby blocks the flow of God's blessings.

To survive during any trading crisis, you must know how to bind the spirit of fear and worry from your mind. As I said above, the spirit of fear is a tormenting spirit that will bind you and keep you from acting in faith on God's promises.

You do not have to be bound or defeated by fear ever again:
"For God has not given us the spirit of fear; but of power, and of love, and of a sound mind." (The Book of 2nd Timothy, Chapter 1, verse 7). Fear has no place in your life! You must recognize the spirit of fear the moment it attacks your mind. You must know how to reject it before it has a chance to enter in and take root.

Take authority over the spirit of fear and command it to go in Jesus' name! If you have accepted Jesus you have the power not Satan. His power was destroyed at the Cross. The Book of 1st John, Chapter 3 and verse 8 says:

“For this purpose the Son of God was manifested, that he might destroy the works of the devil.”

When you accept Jesus as your savior, God gives you power and authority, through the Holy Spirit, over all the power of the enemy. Jesus said:

“Behold. I give you power to tread on serpents and scorpions, and over all the power of the enemy, and nothing shall by any means hurt you.” Serpents and scorpions refer to devils and demons. God is love, and the Bible says that perfect love, the kind God has, casts out fear. If you know you are loved by God, then you will have no fear.

When you are in Christ, you have one living within you who is far greater than Satan and every demon in hell.  “…because greater is he that is in you, than he that is in the world.” He who is in the world refers to Satan, the devil. If you are in Christ you have the power! Use the authority God gives you to command the spirit of fear to go and never return. You can actually say the following words:

“Spirit of fear, in the Name of Jesus, I take authority over you. You are off limits! God has given me a spirit of power, love and of a sound mind. I bind you and command you to stop tormenting my mind. In Jesus Name, I command you to take your hands off my mind and leave now.”

Our trading experiences color the way we see things in the market, and influence the way we approach them. If we take a big hit in a particular market, we may decide never to trade there again. Or, when we have a great trade in a market, it produces pleasure, so we try to trade there again as soon as we can.

How do you envision the markets overall? More importantly, how do you conceive of your role in the market? Do you see the markets as potentially hazardous arenas in which you must be very, very careful? Do you see them as though everyone in them is out to take your money? Or do you view them as a place in which there is dynamic profit opportunity?

Each time you sit down in your trader workspace, do you feel uncomfortable and wish you were somewhere else? Or are you really eager to jump into your work, look over your charts, and get down to trading? Does plowing through new material feel like a lot of hard work, or does it excite you to learn new information that will add to your ability as a trader? The Bible says that whatever you undertake to do, you should do with all your might. This is what diligence is, making every effort at what you attempt to do. Scripture also says that the hand of the diligent makes him rich.

The way you envision the markets will have a powerful influence on your actions! So it's absolutely necessary for you to be very much aware of just what your perception is, and what past experiences color your perception. You need to honestly assess your vision of — and feelings towards — the markets and your role in them. It will surely be time well spent.

Here's something to think about: the longer you sit in front of your screen, the more bad experiences you are going to have. The bad habit that defeats most day traders is that of overtrading. As you continue to sit in front of your trading screen, your focus and your sensibilities become increasingly numb. The longer you sit there, the more the probabilities increase in favor of your making bad decisions and wrong trades.

Let me ask you a question that may put the entire situation into perspective for you. Have you ever seen old people in a nursing home sitting hour upon hour staring at the TV screen? If you haven't, can you picture what it would be like? Almost everyone has seen people who either by choice or circumstance, sit all day watching TV. They sit and watch the "boob tube" hour after hour. What do you suppose this is doing for their minds? Do you think they are becoming increasingly sharp? Is sitting there all day helping them to grow? What would you say is happening to their minds? Are they not going to suffer from an increasing amount of atrophy as they fail to think — as they fail to use their minds? (And also fail to exercise their bodies to help nourishment get to their minds!)

When I see a trader sitting in front of his trading screen all day long, it generates the same kind of picture for me as when I see someone watching TV all day. They are destroying their minds. At least with TV you might learn something. But what are you learning watching a cursor tick up and down hour after hour?

Trading is a terrible occupation if all you do is trade. Taking signals from a mechanical trading system is one of the most mind-numbing, emotionally crippling things anyone can do. The shorter the time frame being watched, the worse it is. Is it any wonder that 90% or more of day traders last only 3-6 months in the market?

A successful trader has two major things going for him/her: 1. Plenty of money to have an excellent life-style. 2. Plenty of time to do some good in this world. But if you sit and trade all day, what do you have to show for it in the end? What have you produced that is of benefit to anyone but yourself?

I'll let you answer that. But my suggestion to you is that you strive to trade less, not more. Learn what the good trades look like, and then trade them only when they occur. And when they do occur, focus your money — trade as many contracts on the good trades as you can. Don't trade more of the time on many trades, trade many contracts less of the time on the good trades.

Use your time and money to help those less fortunate than you. After all is said and done, it is more blessed to give than to receive. Do you know what the word "bless" means? It is a verb meaning to "make happy." Paraphrased, that old saying translates to "you will be a happier person if you 'give' than if all you do is strive to 'get.'" But if you spend all your time and energy on a 1-minute chart, working all day long to get, you're not going to be able to get much of the happiness that is available from giving.

Our trading experiences color the way we see things in the market, and influence the way we approach them. If we take a big hit in a particular market, we may decide never to trade there again. Or, when we have a great trade in a market, it produces pleasure, so we try to trade there again as soon as we can.

How do you envision the markets overall? More importantly, how do you conceive of your role in the market? Do you see the markets as potentially hazardous arenas in which you must be very, very careful? Do you see them as though everyone in them is out to take your money? Or do you view them as a place in which there is dynamic profit opportunity?

Each time you sit down in your trader workspace, do you feel uncomfortable and wish you were somewhere else? Or are you really eager to jump into your work, look over your charts, and get down to trading? Does plowing through new material feel like a lot of hard work, or does it excite you to learn new information that will add to your ability as a trader? The Bible says that whatever you undertake to do, you should do with all your might. This is what diligence is, making every effort at what you attempt to do. Scripture also says that the hand of the diligent makes him rich.

The way you envision the markets will have a powerful influence on your actions! So it's absolutely necessary for you to be very much aware of just what your perception is, and what past experiences color your perception. You need to honestly assess your vision of — and feelings towards — the markets and your role in them. It will surely be time well spent.

Here's something to think about: the longer you sit in front of your screen, the more bad experiences you are going to have. The bad habit that defeats most day traders is that of overtrading. As you continue to sit in front of your trading screen, your focus and your sensibilities become increasingly numb. The longer you sit there, the more the probabilities increase in favor of your making bad decisions and wrong trades.

Let me ask you a question that may put the entire situation into perspective for you. Have you ever seen old people in a nursing home sitting hour upon hour staring at the TV screen? If you haven't, can you picture what it would be like? Almost everyone has seen people who either by choice or circumstance, sit all day watching TV. They sit and watch the "boob tube" hour after hour. What do you suppose this is doing for their minds? Do you think they are becoming increasingly sharp? Is sitting there all day helping them to grow? What would you say is happening to their minds? Are they not going to suffer from an increasing amount of atrophy as they fail to think — as they fail to use their minds? (And also fail to exercise their bodies to help nourishment get to their minds!)

When I see a trader sitting in front of his trading screen all day long, it generates the same kind of picture for me as when I see someone watching TV all day. They are destroying their minds. At least with TV you might learn something. But what are you learning watching a cursor tick up and down hour after hour?

Trading is a terrible occupation if all you do is trade. Taking signals from a mechanical trading system is one of the most mind-numbing, emotionally crippling things anyone can do. The shorter the time frame being watched, the worse it is. Is it any wonder that 90% or more of day traders last only 3-6 months in the market?

A successful trader has two major things going for him/her: 1. Plenty of money to have an excellent life-style. 2. Plenty of time to do some good in this world. But if you sit and trade all day, what do you have to show for it in the end? What have you produced that is of benefit to anyone but yourself?

I'll let you answer that. But my suggestion to you is that you strive to trade less, not more. Learn what the good trades look like, and then trade them only when they occur. And when they do occur, focus your money — trade as many contracts on the good trades as you can. Don't trade more of the time on many trades, trade many contracts less of the time on the good trades.

Use your time and money to help those less fortunate than you. After all is said and done, it is more blessed to give than to receive. Do you know what the word "bless" means? It is a verb meaning to "make happy." Paraphrased, that old saying translates to "you will be a happier person if you 'give' than if all you do is strive to 'get.'" But if you spend all your time and energy on a 1-minute chart, working all day long to get, you're not going to be able to get much of the happiness that is available from giving.

Bible scripture uses the term "righteousness" for morality. Righteousness includes the way you conduct yourself, your trading, and your trading business. One aspect of morality is that of being ethical. One way to look at morality is to look at its opposite — immorality: badness, corruptness, dishonor, evil, and dishonesty. Sadly, the markets and all too many of those who live off of those who aspire to be traders, fit the definition of immorality. Equally sad to say, these parasites populate the Internet in increasing numbers, as they seek to prey off the ignorance of novice traders. All we can say to that is "Trader, beware!" These denizens of the marketplace will do anything they can to part you from your money. They are ruthless and merciless. However, in spite of them, there are those who survive and get past the ones who would separate them from their hard-earned money. Those survivors have managed to learn a great lesson: trading is a business, and must be conducted as such.

Trading is a business, but certain areas of trading, such as day trading, can be a business missing a key dimension — that dimension being that it can have little value for the development of any individual person’s contribution to society.

I want to make it perfectly clear that I am not writing about the value of markets to the economic structure of the world. Nor am I addressing the value that speculating holds for the development of an individual’s character. To the contrary, markets and those who trade in them are in a position to greatly benefit the economic and societal structures of the world, and, when properly conducted, speculating can contribute greatly to the personal attributes of discipline and self-control among those who speculate in the markets.

My comments here are not to those who truly use the markets as they were originally intended — those who are producers and users, who utilize the markets for hedging.

My comments are not to those who are knowledgeable speculators holding long-term positions providing true liquidity to the markets.

My comments are aimed at those who foolishly speculate in the markets, knowing little or nothing about true market dynamics, and even less about any purpose their speculations may have. Sadly, this includes, for the most part, those novice speculators who dabble in what has become known as “day trading.” I wish to separate true speculative trading from what I will from this point on call “get-rich-quick speculating,” and those who engage in it I will call “novices.”

I have long held that true speculating is one of the finest ways to develop personal character as a human being. Even, speculating as a day trader. Not only do speculators have to develop discipline and self-control, but real speculators, as opposed to gamblers, must also overcome many weaknesses of character that, if not overcome, invariably lead to failure in the markets.

Speculators must conquer fear and greed. Speculators cannot afford delusion; when it comes to market perception, they must be totally honest about what they see. Above all, speculators must rigorously seek the truth about the markets and those who trade in them.

The Missing Dimension

The missing dimension in speculation, as it concerns novice traders, can be seen in the fact that it is almost totally self-serving gambling. At the individual level, for those novices trading is nothing more than a selfish act.

Think about it! What service is performed via the act of short-term gambling? What product is produced that is of benefit to anyone?

The role of novice day traders today can no longer be the claim of providing liquidity to the marketplace. Leaping in and out of trades several to dozens of times a day does nothing more than churn the markets at the same time that it churns the novice’s account! Is it any wonder the brokers love these people? The type of liquidity for which the markets were originally created must take place over the entire course of the time it is needed, not just for a few minutes. A weakness of day trading is that it provides liquidity almost entirely for other day traders.

At one time it could rightfully be said that speculative traders provided liquidity to the need for hedgers to protect against wild fluctuations in price. But how does a trade held for seconds or minutes help the hedger? Let’s face it, it doesn't! When far fewer than 3% of all positions entered into result in the delivery of anything at all, how can it be said that speculation provides liquidity to those who have a need to hedge?

I am not against speculating as an occupation. Speculating is how I make my living, and teaching about speculating is why I created Trading Educators. Speculating is not wrong when it is done with knowledge and wisdom. I make my money, and still do, by having more knowledge and correctly applying that knowledge — wisdom.

It was not until I decided to reach out to help others that I found the real value of speculating — I could use the harvest I reaped from the markets to help other people.

Viewing the results of speculating is similar to viewing a field (the markets) after a vicious battle — the field is strewn with the dead, dying, and horribly wounded. Becoming a victim of the speculative battle is the sad and terrible truth for most novice “traders.” The overwhelming majority of aspiring novice traders will end up having lost most, if not all, of their money. Even greater is the loss of feelings of personal worth as the markets discover and exploit every human weakness of character in those who would become successful at speculating.

At one time, trading was a noble occupation in that speculators actually provided liquidity for those who had an economic need for it. The hedger was able to pass off the risk of excessive price fluctuation to those willing to take that risk in return for the greater anticipated reward — the speculative trader. Speculative traders did take, and still do take, risk after performing a thorough analysis of the fundamentals driving the markets in which they speculate. The true speculator makes his trading decisions based on knowledge gathered from information about: the behavior of the underlying, seasonality, historical and current trends, chart analysis, fundamentals, the market dynamics, and the understanding of those who trade in them. This is quite unlike the way in which novice traders operate.

Short-Term, Day Trading Speculation

Think! Do any of the above parameters apply to the kind of speculation found in day trading as performed by novices? The shorter the time frame traded, the less any semblance of rational trading can be applied. Where does the market analysis come into play on a 5-minute chart?

What is known about the fundamentals? What is known about the underlying, seasonality, historical and current trends? As opposed to being proactive, the novice day trader is almost completely reactive to the price action in the marketplace. I ought to know, I was once a novice.

This is not to say that it is not possible to make money by day trading. I have done that for years. But my question is: of what value other than self-seeking are the winnings from day trading by a novice day trader? What is produced that is of benefit to anyone other than the day trader? Where is the product or service? Where is the value?

The Drawbacks of Day Trading

It is common knowledge that sitting in front of a television set all day long eventually produces atrophy of the mental processes. Someone addicted to television eventually loses much of the ability to think. Television is entertainment without the benefit of participation. There is little action in watching TV.

How much more so for the novice who sits in front of a trading screen all day in the hopes of winning money. At least in watching TV there is some chance of gaining knowledge. What knowledge is gained from watching a cursor move up and down on the screen all day long? Day trading is addictive, and those who sit in front of the screen throughout the day are surely growing brain-dead over a period of time. Novices who engage in this kind of day trading are losing their ability to think, and they are losing it more quickly than the person who watches TV all day.

The novice who day trades throughout the day is subject to almost constant stress in the hopes of monetary gain. The more trading decisions a novice makes in a single day, the less effective he/she becomes. I am asserting a proven fact that is found in the old saying, “all work and no play makes {your name} a dull boy.” There is a reason school classes are on average only 45 minutes in length — the brain can absorb only as much as the seat can endure.

I have proven that the less you trade in and out during the course of a day, the more money you will make. I am telling you here that the more you trade in and out, the less effective you will be. Novice traders who survive the markets long enough to find this out know that their best trades are their initial trades, and that the longer they “play” in the markets, the more they tend to lose what they made earlier in the day.

However, this is advice contrary to what the industry will tell you. So it takes a step of faith to believe what I am saying to you. The industry wants you to trade — they want you to make many trades. The brokers are getting rich from your trading — whether you win or lose, they win. Whether you win or lose, the exchanges take their pound of flesh every time you trade.

Is Day Trading an Occupation?

Once again I ask you to think — is day trading an occupation? Certainly it occupies your time, but what value is produced from this activity? For most aspiring speculators, the product is money lost. For most, it is defeat in the markets. Day trading, even for those who succeed at it, can provide a hollow victory. The result is most often the opposite of the reasons for which a person enters the business of speculating. For most, day trading results in long tedious hours sitting in front of a computer screen — and then even more hours backtesting and fiddling with historical charts trying to figure out a better way to speculate.

People tell me that they want to become “traders” so that they no longer have to punch a time clock. They want to enter this business so they can be their own boss. They want to be independent. They want to answer only to themselves. To accomplish this, they are willing to give up their job and all of its perks. They are willing to give up their retirement program, paid vacations, health benefits, a company car, paid travel, etc. However, few indeed ever count the costs. All they see dangling in front of them is money and all the happiness they think it will bring.

Get a Life

Speculating can be a wonderfully rewarding activity if it is engaged in sensibly. Speculating, when done properly, can furnish the speculator with time and money to do those things that result in an enriched life. Enrichment comes when time and money can be used to bring happiness to others. There is much truth in the notion that the greatest happiness results from giving. The successful speculator is in an excellent position to give both time and money in the pursuit of bringing joy into the life of others.

Apply these to your trading and your life.

“Only fools refuse to be taught. Wisdom calls out in a loud voice wanting to be heard.”

“Wisdom is supreme; so get wisdom. Though it costs you all you have, get understanding (of the markets and how they work.)”

The above proverb reflects much of how I feel about the subject of wisdom. For years I have pursued it diligently. I long ago realized that I was a fool – with that realization I began an unrelenting hunt for wisdom in my trading. The quest still goes on, and probably will as long as I live. It is one of the most important things in my life.

The following is a paraphrase of proverbs taken from various translations of scripture and set into language that makes them more easily understood in light of our purpose here, which is to bring wisdom into the trading of markets. It is my pleasure to share them with you.

Purpose

The purpose of these proverbs is to help you to attain wisdom and discipline; for understanding words of insight; for acquiring a disciplined and prudent life of doing what is right, just, and fair.

They are set forth for giving prudence to the simple-minded, and knowledge and discretion to the beginner. Let those already wise read them and add to their knowledge. Do you think that is you? You say to yourself, "I am wise!" But I can tell you that nine out of ten wannabe traders are truly simple-minded when it comes to the business of trading.

The Bible says that respecting God is the beginning of knowledge, but fools despise wisdom and discipline. So many aspiring traders think that they can somehow "make it" by acquiring knowledge. They think: "Why not? After all, isn't this how I have achieved my current position in society?"

However, knowledge is not enough. It is the right application of knowledge that will make you a successful trader. Wisdom is defined as the right application of knowledge. Without wisdom, there is no way you can exercise self-control. Wisdom is the only way to achieve discipline, and a trader needs self-discipline above all else.

Don't be enticed

Read these instructions and don’t forget these teachings. If salespeople, promoters, and hustlers try to entice you saying “Invest along with us, we’re making the hot trades, we’re eating up the markets, we’ve got the most fantastic system,” don’t go along with them. Don’t listen to them, because they will head you straight for danger. Trouble and disaster await all those who want easy wealth and to “get rich quick.”

The lips of these financial whores drip honey, and their speech is smoother than oil. Flattery is their stock in trade. But afterwards, you are left with only the taste of bitter gall as you realize that they have led you down the path to financial ruin and destruction.

Wisdom will save you from the words and enticements of these greedy fiends. Their words are perverse and crooked. They are designed to play on your greed and suck you in. What they have to say is devious and deceptive. They blaze a crooked trail and don’t even realize that they themselves are staggering down that same path, ultimately snaring themselves in the same trap in which they have entangled others.

You beginners especially, and you who are older, who may have become less nimble-minded and astute, run from these crooks. Don’t go near them, because they will feast on your wealth, and all your labors will go to enrich them. You will be left groaning, tired and sick to your stomach, having been cheated out of all your wealth, your savings, and the fruits of all your labors. Then you will say “Oh, if only I had been wise. If only I had listened.”

Benefits of wisdom

Be faithful and honest with yourself in your trading, be diligent and consistent, and it will bring you prosperity.

Anyone willing to be corrected is on the path to success. Those who refuse correction have lost their chance.

Wisdom in financial situations

If you have been foolish enough to co-sign someone else’s debt, if you have been trapped by what you have said, ensnared by the words of your mouth, then do this to free yourself, since you have fallen into their hands: Go and humble yourself; press your plea with them! Don’t even allow yourself to sleep until you free yourself from the mistake you have made.

Follow the rules and keep your financial life intact; ignoring them means financial ruin.

Steady plodding brings prosperity; hasty speculation brings poverty.

Any enterprise is built by wise planning, becomes strong through common sense, and profits wonderfully by keeping abreast of the facts.

Riches can disappear fast — so watch your business interests closely. Know the state of your investments.

Those who work their plan will prosper, but those who chase fantasies lack judgment.

Laziness

If you are lazy, learn a lesson from the ants. Learn from their ways and be wise. Because even though they have no one over them to make them work, yet they labor hard all summer gathering food for the winter.

Lazy people won’t use the tools at their disposal, but the diligent make good use of everything they find.

The lazy are full of excuses. “I can’t go to work” they say. “If I go outside I might meet a lion in the street and be killed.”

Wisdom vs. Foolishness

If you instruct the wise, they will be wiser still and will add to their learning. If you instruct fools, they will ignore you and may even insult you.

The wise in heart will accept rules and live by them, but the chattering fool will come to ruin by ignoring these rules.

The wise store up knowledge, but fools blurt out everything they know, which only leads to sorrow and trouble.

The earnings of the wise advance their purposes; fools squander their earnings on foolish things.

A fool’s pleasure is in doing stupid things; the pleasure of the wise is in being wise.

What fools dread overtakes them; what the wise desire will be granted to them.

When the storm has swept by, the foolish are gone, but the wise are still there standing firm.

The wise are guided by their honesty; fools are destroyed by their dishonesty.

The fool sometimes gets rich for the moment, but the reward of the wise is lasting.

Fools think they need no advice, but the wise listen to others.

A fool is quick-tempered; the wise man stays cool in the face of insult or adversity.

The wise ask advice from friends; the foolish plunge ahead and fall.

The wise think ahead; the fool doesn’t, and even brags about it.

The wise eat to live, while the fool never gets enough.

The wise look ahead. Fools fool themselves and won’t face facts.

The wise are cautious and avoid danger; fools plunge ahead with great confidence.

Simpletons are crowned with folly; the wise are crowned with knowledge.

The wise are praised for their wisdom; fools are despised for their folly.

Fools despise advice; the wise consider each suggestion.

The wise are hungry for the truth, while fools feed on trash.

The wise think before they speak; the foolish pour out their nonsense without even giving it a thought.

A person of few words and settled mind is wise; therefore, even a fool is thought to be wise while remaining silent. It is profitable for fools to keep their mouths shut.

The wise learn by watching ruin overtake the foolish.

The foolish will lose in the end; the wise will end up with the winnings.

The wise save up for the future, but the foolish spend whatever they get.

Wisdom is a fountain of life to those possessing it, but a fool’s folly is his burden.

Wealth vs. Poverty

The wealth of the rich is their strength, but the poverty of the poor is their curse.

Hard work brings prosperity; playing around brings poverty.

Pride vs. Humility

The proud end up losers, but the humble become wise.

Pride leads to arguments; be humble, take advice, and be wise.

Pride goes before destruction, and arrogance before a fall.

Pride ends in destruction; humility in honor.

Thought Provokers

Gossips go around spreading rumors, while the trustworthy try to quiet them.

To learn, you must want to be taught. To refuse correction is stupid.

The plans of good people are honestly thought out, but advice from the dishonest is deceitful.

Everyone admires those with good sense; but those with a warped mind are despised.

It is better to get your hands dirty and eat, than to be too proud to work and starve.

Lies will get anyone into trouble, but honesty is its own defense.

The truthful give honest testimony, but a false witness tells lies.

Some people like to make cutting remarks, but the words of the wise soothe and heal.

Truth stands the test of time; lies are soon exposed.

Wealth taken from gambling quickly disappears; wealth from diligent effort and hard work grows.

It is pleasant to see plans develop. That is why fools refuse to give them up even when they are wrong.

If you are looking for advice, stay away from fools.

Before everyone there lies a wide and pleasant road that seems right, but ends in death.

Only simpletons believe what they are told! The prudent check to see where they are going.

The quick-tempered do foolish things, and despise those who are patient.

Work brings profit; talk brings poverty.

The wise control their temper. They know that anger causes mistakes.

Mockers resent correction; they will not consult the wise.

When you are feeling gloomy, everything seems to go wrong; when you are feeling cheerful, everything seems right.

Plans go wrong with too few counselors; many counselors bring success.

Everyone enjoys giving good advice, and how wonderful it is to be able to say the right thing at the right time.

If you profit from constructive criticism, you will be elected to the "Wisdom Hall of Fame." But to reject criticism is to harm yourself and your own best interests.

Wisdom is better than gold, and understanding more valuable than silver.

Hunger is good if it makes you work to satisfy it.

A rebuke to those of common sense is more effective than a hundred lashes on the back of a rebel.

It is safer to meet a bear robbed of her cubs than fools caught in their folly.

Fools find no pleasure in understanding, but delight in airing their own opinions.

At times the rich think of their wealth as an impregnable defense, a high wall of safety. What dreamers they are!

Rumors are dainty morsels, too often consumed with great relish.

What a shame — yes how stupid! — to decide before knowing the facts.

The intelligent are always open to new ideas; in fact they look for them.

It is dangerous and stupid to rush into the unknown.

People who love wisdom love their own best interest, and will be successful.

Get all the advice that you can, and be wise all the rest of your life.

Stop listening to teaching which contradicts what you know is right.

If you won’t plow in the cold, you won’t eat at the harvest.

The intelligent person sitting as judge will weigh all the evidence carefully, distinguishing the true from the false.

If you love sleep, you will end up in poverty. Stay awake, work hard, and there will be plenty to eat.

“Utterly worthless”, say the buyers as they haggle over the price. But afterwards they brag about their bargain.

Good sense is far more valuable than gold or precious jewels.

Don’t tell your secrets to a gossip unless you want them broadcast to the entire world.

A fortune can be made from cheating, but there is a curse that goes with it.

The glory of the young is their strength; of the old, their experience.

The man who strays away from common sense will end up dead.

The wise are mightier than the strong. Wisdom is mightier than strength.

Don’t go into the battle without wise guidance; there is safety in many counselors.

A person without self-control is as defenseless as a city with broken-down walls.

In the mouth of a fool a proverb becomes as useless as a paralyzed leg.

As dogs return to their vomit, so do fools return to their folly.

There is one thing worse than a fool, and that is a person who is conceited.

Don’t brag about your plans for tomorrow — wait and see what happens.

Sensible people watch for problems ahead and prepare to meet them. Simpletons never look, and suffer the consequences.

Ambition and death are alike in this: neither is ever satisfied.

Persons who refuse to admit their mistakes can never be successful. But if they admit them and forsake them, then they get another chance.

Those who want to do right will get a rich reward. But those who want to “get rich quick” will quickly fail.

Trying to “get rich quick” is wrong and leads to poverty.

It is foolish to entirely trust yourself, but those who use God’s wisdom are safe.

One of the most beautiful pieces of scripture that any trader can take to heart is found in the eighth chapter of the book of Proverbs. I end this section with quotes from that chapter:

“Can’t you hear the voice of wisdom? She is standing at the city gates and at every fork in the road, and at the door of every house. Listen to what she says: ‘Listen men!’ She calls. ‘How foolish and naive you are! Let me give you understanding. Let me show you common sense! Listen to me! For I have important information for you. Everything I say is right and true, for I hate lies and every kind of deception. My advice is wholesome and good. There is nothing of evil in it. My words are plain and clear to anyone with half a mind — if it is only open! My instruction is far more valuable than silver or gold.’

“‘I, Wisdom, give good advice and common sense. Because of my strength, governments reign in power. I show the judges who is right and who is wrong. Rulers rule with my help. I love all who love me. Those who search for me shall surely find me. Unending riches, honor, justice and rightness are mine to distribute. My gifts are better than the purest gold or sterling silver! My paths are those of justice and right. Those who love and follow me are indeed wealthy. I fill their treasuries. The Lord formed me in the beginning, before he created anything else. From ages past, I am. I existed before the earth began. I lived before the oceans were created, before the springs bubbled forth their waters onto the earth; before the mountains and the hills were made. Yes, I was born before God made the earth and fields, and high plateaus. I was there when He established the heavens and formed the great springs in the depths of the oceans. I was there when He set the limits of the seas and gave them his instructions not to spread beyond their boundaries. I was there when He made the blueprint for the Earth and oceans. I was always at his side like a little child. I was his constant delight, laughing and playing in his presence. And how happy I was with what He created — His wide world and all His family of mankind! And so, listen to me, for how happy are all who follow my instructions.’

“‘Listen to my counsel — don’t refuse it — and be wise. Happy is the man who is so anxious to be with me that he watches for me daily at my gates, or waits for me outside my home! For whoever finds me finds life.’”

One last word: in the Biblical sense, to be wise is to seek God and learn to live in ways that please Him. The fool, in that sense, is the one who determines to get through life on his own terms, thereby never discovering the purpose for which God created him.

There are two aspects of dishonesty and lying with which a trader must deal: the lies that are thrown at him from some people in the field, and the lies that the trader feeds to himself.

At Trading Educators we hear many sad stories from novice traders who have been duped by dishonest liars. Scripture says to beware of "a proud look, a lying tongue, and hands that shed innocent blood." Don't allow that blood to be yours.

But the worst kind of dishonesty and lying of all is lying to yourself. It is amazing how the human mind can rationalize to the point of deception. In the book of Galatians, chapter 6, verse 3, we read: "If anyone thinks he is something when he is nothing, he deceives himself. " That goes along with what scripture has to say about pride. But we have seen traders take personal deception to extremes.

I will never forget sitting with a doctor who wanted to be a trader, and watching the ultimate self-deception. He had developed a trading system, and invited me to observe how wonderfully well it worked. He invited 3 other people as well. We were all witnesses to the absolute failure of his system. But each time the system failed, he told us: "Well, if I were trading it, I wouldn't have taken that trade!" When we pointed out to him the numerous short-comings and erroneous thinking behind his system, he simply became angry with all of us - all, that is, but one. One of the people he had invited was his broker. His broker completely agreed with him. You could almost see this broker licking his lips as he contemplated all the commissions he would make from the doctor's trading. So naturally he lied and told the doctor that the system was good. He could find nothing wrong with it. Do I have to tell you that the doctor traded his system with that broker and lost $350,000? Lying and deception can never produce anything consistently good.

So what is the truth in trading? That there are no shortcuts, no way to get around the basic need for self-control, study, and practice. And that the trader's life must be balanced and integrated into his overall physical, mental, and spiritual health and development.

Scripture states: "Pride goes before destruction, and an arrogant spirit before a fall." Proverbs 16:8. I cannot tell you how many times I have seen pride destroy a trader. I can't count the times pride has cost me dearly, resulting in the opposite, which is humility. The markets can humble you so fast it makes your head (and your account) spin.

Yet we see it all the time among novices, especially on forums and news groups. Invariably there will be traders on these venues who have to tell everyone how well they are doing. They have to brag about their trading prowess, and crow about their success, whether real or imagined.

When pride enters the picture, you can be certain that disaster is just ahead. When you put your ego on the line, get ready to have it smashed. Interestingly, scripture has some pertinent things to say about pride. In the book of Proverbs, chapter 8, verse 13, God is quoted as saying: "...I hate pride and arrogance..." A little further on, in chapter 11, verse 2, it says: "When pride comes, then comes disgrace, but with humility comes wisdom."

"A man's pride brings him low," according to Proverbs 29:23. Scripture mentions the word "pride" no less than 46 times; the word "proud" is mentioned 47 times, and there is never anything good said for those who are proud or have pride. We are told that the pride of your heart will deceive you.

The markets have certain attributes that are true. As far as a trader is concerned, the markets are all-powerful and all-knowing. Markets are like the 600-pound gorilla - they go wherever they want to go. Additionally, all knowledge about the underlying is in the market. Any information that is not generally known is not in the market, and so the trader has no need to be concerned about it. But he needs to take care that he never gets "cocky" (crows like a rooster) or vain or careless when he's standing in the path of the market!

My friends, I could go on and on quoting from what the Bible has to say about pride, arrogance and vanity. But suffice it to say that none of it is in favor of any of them. If you find that pride is a problem with your trading, then you need to confront it, deal with it, and get rid of it.

Also, learn to keep your mouth shut about your trading. Keep quiet about your investments. The less said about your financial life, the better. I have seen traders get up at seminars and tell everyone else there how they are cleverly beating the tax man. But agents of the Internal Revenue Service (IRS) often secretly sign up for such seminars. They take notes and names. I know this for a fact because it happened at one of my seminars.

Do not brag about your trading on forums or any other public venue. You never know who is listening in. When you tell about the great trade you made, whether or not it is true, don't be amazed when you get a phone call or a letter from the IRS!

The selfish trader wants it all for himself. The sad part is that he believes he can get all. The selfish trader is most apt to fall for marketing hype telling him he can know exactly when and where prices will change direction (turning points.) The selfish trader is blind to the fact that those who proclaim they can predict market turning points are not able to predict with any certainty where the next tick will be. Selfish traders are akin to, though somewhat different from greedy traders. The Bible has a lot to say about greed. Notice:

"A greedy man brings trouble to his own house." Proverbs 15:27 Here's another one: "They are like greedy dogs...everyone is for his own gain." Isaiah 56:11

I don't know about you, but I hope that I will never be viewed as being like a "greedy dog," out only for my own gain.

The apostle Paul warned against being greedy for money (1 Timothy 3:3), but that is what we have witnessed among so many traders. I recall one trader who was so greedy that he repeatedly gave back substantial profits in his lust for even more. His trading records time and again showed profits of $1,500, $1,800, $2,000 and even more, yet on every one of those trades he ended up losing money. He simply could not bring himself to take the money when it was there. So he hung onto trades, hoping for even more. When the market turned, he kept telling himself prices would once again move his way. But they didn't, and he sat and watched his unrealized profits vanish into thin air; he watched them turn into losses and, when he no longer could stand the pain, he gave up and exited the trade. To ease his pain, he simply turned off the screen so he didn't have to watch. In doing that he added self-deception to his problem with greed.

Greed and selfishness are nothing more than human lust. It's interesting to see what God inspired the apostle John to say about it. You'll find it in the book of 1 John 2:16: "For everything in the world - the cravings of man, the lust of his eyes and the boasting of what he has and does - comes not from the Father (God) but from the world." We live in this world, and it takes great effort to overcome the pulls and temptations that are a part of society. In our greed and selfishness we want more and more. We want every toy and device we can get our hands on. But the more we get, the more we want. There is no satisfying greed. Greed is an appetite that can never be filled.

One of the wisest traders ever is quoted as saying he was content with getting his piece out of the middle of a move. Content is an important word in trading. It is the opposite of discontent, and discontent is the twin brother of greed. Unless you can be content with your piece of the market, you will continue to strive for more. In trying to get more, you will lose what you have. It's like Aesop's fable about the dog and the bone. The dog looks down into the water and sees his reflection: a dog with a bone. He opens his mouth to grab the bone in the reflection and loses the bone he actually has. We have seen many traders who are like that. They are selfish like the dog, they are not content with what they have, and they are greedy for more!

In the book of the Bible called 2nd Peter, beginning in verse 5, we find the following words written by the apostle Peter:

"... Make every effort (be diligent) to add to your faith, goodness; and to goodness, knowledge." Elsewhere in the Bible, we find that "the hand of the diligent makes him rich."

How can we apply this to our trading? What do faith and diligence have to do with trading?

When you are trading, you must have faith in two things:

1. Yourself.
2. Your knowledge of what you are doing.

You acquire this faith, this confidence in what you are doing, through diligence, by making every effort to acquire knowledge. But keep in mind that you must be diligent to acquire the right knowledge. It is all too easy to be fooled by marketing hype into acquiring worthless knowledge, information that will not succeed in helping you to become a better trader. So goodness must also enter the picture.

Once you have faith in yourself and your methodology, add good information to what you have already learned.

But the apostle Peter, through the inspiration of God, had a lot more to say. In verse 6, we are told to add self-control to our knowledge, and to self-control add perseverance.

Would you agree that self-control is critical to successful trading, and that the only way you can develop self-control is to persevere - stick with it until you have it? Peter then finishes that verse, writing "...and add to perseverance, godliness."

What in the world can he mean by godliness? How can we apply that to trading? The word translated "godliness" is the Greek word "eusebeia." It also means "respect." Do you respect the power of the market? You should. The market goes where it goes without asking for your permission. Respect for market dynamics must be included in your trading plans. So to perseverance, we must add respect.

Next, the apostle Peter tells us to "add to respect, brotherly kindness," i.e., good will. You know that as a trader you have to deal with others. A prominent person in this regard is your broker. There comes a time when you need to call the broker, even if you are an electronic trader. Trading is not 100% devoid of human contact. So part of trading is learning to be nice to people. It's just good business.

This brings to mind the selfish trader, the one who wants to have it all. The selfish trader is not a practitioner of good will. This is the trader who will try to know in advance where market turning points will be. This is the trader who lacks the knowledge that no human can tell you with absolute certainty where the next tick will be, let alone where prices will turn in the market.

Peter has yet more to say that we can apply to our trading. In verse 8 he says, "if you possess these qualities (the virtues we've been looking at) in increasing measure, they will keep you from being ineffective and unproductive." He also says, in verse 9, that "if anyone does not have them, he is short-sighted and blind."

Can anyone disagree with a trader's need to be diligent, and knowledgeable? Can you disagree that it is important to persevere and develop self-control? Would you argue that it doesn't pay to be nice to people, to show respect to others and to the markets?

God's words are also revealed through the apostle Paul, and they apply to us as traders. Some of these virtues are supportive of what the apostle Peter had to say, and all of them are virtues that cannot hurt any trader, they can only be helpful. We find God's inspired words to us in the New Testament of the Bible in the book of Galatians, Chapter 5, beginning with verse 22:

Paul begins by telling us we must have love. This is the same word that was used by Peter which I told you means good will. But it also has other meanings, one of them is affection. You really must have an affection for trading and the markets if you are to succeed in them. This love or affection for what you do is essential for persevering in the marketplace. As we will see later, perfect love, according to scripture, drives out fear. We will discuss that when we come to the topic of fear.

Paul tells us we must have joy. The word used here also means gladness. Are you a happy, joyful trader, glad for the opportunities presented by the market? Or do you trade uptight, fearful, and with great trepidation? It is truly difficult to trade if every trade is, for you, a traumatic event.

Paul tells us next that we should be at peace when we trade. We should be relaxed, at rest, quiet, exempt from rage. When we trade we should be in step with the market. The word used here also mean to be in harmony with the market, because peace and harmony make and keep things safe, and the results of our efforts will be prosperity. Being at peace means we should be assured of the outcome of our trading. Did you ever think you would find such things in the Bible?

But Paul is not done yet. He tells us that we must be patient, constant, and steadfast. Paul called this "longsuffering" in some translations of the Bible. Is that you when you trade? Are you patient, constant, and steadfast? Do you stick with what you know? Do you follow your plan?

Next, Paul tells us to be gentle, good, and to have faith. Let's look at what those things mean in the original Greek so that we can apply them to our trading.

Gentleness is talking about morality, moral goodness, and integrity. Do you see anything wrong with applying integrity to your trading? We're going to talk about the morality of our trading in another section, so I will leave the depth of that discussion for later. The word good as used by Paul in this instance has to do with uprightness of heart and life, certainly virtues to be sought after, and which are part and parcel with morality. Paul also tells us to have faith, i.e., assurance, belief in what you are doing. This is where courage of conviction enters the picture. Do you believe in the truth of the knowledge you have of trading and of the market? If not, how can you possibly trade with any assurance that your trading will produce your desired results? Faith is conviction. Faith is trust in your ability to trade successfully.

Continuing, Paul says: You should be meek and temperate. By the word meek, Paul means to be mild, calm, and at ease. And this is the way you should be when you are trading. By temperate he means under control; self-disciplined and self-controlled. I suppose there have been plenty of books written about that in conjunction with profitable trading.

Then Paul concludes with a rather interesting statement. He says, "Against these, there is no law." Can you agree with that? Has anyone ever passed a law that says you cannot be happy, joyful, in love with your work, believing that what you are doing will bring you success? Is there a law against being a nice person, a humble person, an ethical person, or a person who practices moderation? All of these virtues can only enhance your trading as well as your whole life.