S is for Simplicity

“The ABC’s of the Tao of Forex” series

简 — "Simplicity"

One of the Three Treasures. Strip away until only the Tao remains.

简 (Jiǎn) means "simplicity," "frugality," or "economy." It is one of the "Three Treasures" that Laozi names in Chapter 67 of the Taodejing, alongside Compassion (慈, Cí) and Humility (不敢为天下先, Bù gǎn wéi tiānxià xiān).

Laozi says: "I have three treasures that I hold and guard. The first is compassion. The second is simplicity. The third is not daring to be first in the world." Simplicity is not merely an aesthetic preference. It is a core virtue of the Taoist sage—a recognition that the Tao itself is simple, and that complexity is a human addition that obscures the truth.

The Taoist Principle

The Tao is simple. It is the human mind that complicates. We add layers of interpretation, analysis, opinion, and prediction to a reality that simply is what it is. The sage strips away these layers until only the essential remains.

Simplicity is not ignorance. It is refined clarity. A simple system is not one that has been carelessly thrown together; it is one from which everything unnecessary has been carefully removed. The uncarved block (Pu) is simple. The carved, ornamented sculpture is complex, but it has lost the natural beauty of the original wood.

The Trading Application

The trading industry profits from complexity. Indicators, algorithms, news feeds, expert opinions, proprietary signals—the message is always that you need more to succeed. The Taoist trader takes the opposite approach. You need less.

Simplicity in trading means:

- A clean chart with minimal indicators. If you cannot explain what an indicator is doing in one sentence, remove it.

- A trading plan that fits on one page. Entries, exits, risk, conditions. Nothing more.

- A single strategy, deeply mastered, rather than five strategies, shallowly known.

- A simple daily routine: stillness, observation, execution, reflection.

- Simple language: "Price is trending up on the daily." Not a paragraph of technical jargon.

Challenge: Remove one indicator from your chart every week until you are trading with price, volume (if available), and nothing else. See if your results degrade. Often, they improve, because you are finally seeing the market rather than a forest of derivative calculations.

The Daily Practice

Take your current trading plan or strategy document. Count the number of rules, conditions, and contingencies. Now, attempt to reduce that number by half without sacrificing the core logic. What can you simplify? What is a "nice to have" rather than a "must have"?

Do the same with your chart. Remove one thing. Trade without it for a week. Notice how much of your mental processing power was being consumed by something you didn't actually need.

Closing Mantra

‍ ‍"I strip away the unnecessary. What remains is the Tao."

This is one letter of the ABCs of The Tao of Forex—a 26-part journey through the ancient principles that transform trading from a struggle into a practice. Each letter stands alone, but together they form a complete path: from Alignment to Zenith.

If this resonated with you, save it. Sit with it. Let it find its way into your next session, your next trade, your next moment of stillness before the charts. The Dao does not rush, and neither should you.

Ready for the next letter?

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