Newton's First Law of Motion states that a body will continue in its state of rest or uniform motion unless acted upon by a Force.
Newton's Second Law of Motion states that the rate of change of momentum is directly proportional to the applied force and in the direction of the force.
The convenient equation for this law is F=m*a where F is Force, m is mass of the body and a= acceleration. He devised these Laws to understand better the Physical Universe that he studied so much.
However, today, I understood their impact on other areas too. For a couple of years I have been running three times a week. Last week I missed three days. Today, when the alarm sounded in the morning, I automatically hit the snooze button and went back to sleep. An activity that I had been doing for 2 years without a problem was becoming difficult after a break of only 3 days. I remember that when I started running, it took me more than a month to make getting up and running an effortless activity-a habit. So this made me think and discover my first two law of habits.
The convenient equation for this law is F=m*a where F is Force, m is mass of the body and a= acceleration. He devised these Laws to understand better the Physical Universe that he studied so much.
However, today, I understood their impact on other areas too. For a couple of years I have been running three times a week. Last week I missed three days. Today, when the alarm sounded in the morning, I automatically hit the snooze button and went back to sleep. An activity that I had been doing for 2 years without a problem was becoming difficult after a break of only 3 days. I remember that when I started running, it took me more than a month to make getting up and running an effortless activity-a habit. So this made me think and discover my first two law of habits.
So without much ado is my First Law of Habits. A person will continue with his default state of rest (bad habits) unless acted upon by an internal Force viz willpower.
My second Law of habits: The rate of change from bad habits to good is directly proportional to the force applied and the consistency with which it is applied.
So in case of habits, Force reqd = m*a where m= strength or mass of entrenched bad habits and accelaration is the pace at which you want to get rid of the bad habit.
It takes a large Force applied consistently for a large time to change the default state from bad habits to good. The more time the bad habits have been entrenched in us (mass of the habit), the more is the Force that is required. However once we get rid of the bad habit or replace it with a good one i.e. make the good habit our default state, not much force is required to remain in that state of good habit-as a consequence of the first law of habits
This holds true in trading too. It takes a lot of effort and time to become a good system trader. To force oneself to follow the system unquestioningly and to do what is right requires a great amount of will power and time. The difficulty is that one can revert to our bad habits almost unknowingly. So eternal vigilance is the price one has to pay to remain at the same level as a trader.
It surprises me. I mean the ease with which I develop these incredible laws. At this rate I do not know how many more will I discover. I better slow down. The world really has a small attention span. I cannot have innumerable laws named after me! Even Newton, after all, had only 3.
Finally, while discovering these two laws, I also closed my short positions and went long on the Nifty when it crossed 4926. I will cut my long and go short only below 4855.
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