Sports and Trading: how to be a successful forex traders

Analogy is a great way to illustrate complex concepts. They help to explain ideas that are often not intuitive at first glance. The following 9 sportanaloger highlight some of the main handelsbegreppen. That only violate one of these principles often leads to inconsistent handelsresultat. By understanding a few simple ideas and apply them, you can greatly increase the efficiency of your handelsrutin.

Tennis – who do not make mistakes

Statistics say that amatörspelarna lose their matches not because the opponent is too strong, but for the fact that they make many mistakes. The same thing applies to trading. It is not the market’s fault. Your own decisions and actions causing trading losses other. When you violate your riskprinciper, takes positions that are too large, adds to the lost positions, breaking rules, trying to compensate for the losses and take bad positions that do not match your criteria – it’s those things that are responsible for handelsmisstag.

Baseball

Some traders focus on to follow their usual routine and do what they have done thousands of times before. They know that by continuously doing step after step, they have bigger chance to win.

The best traders also know that they have to follow their routine and always stick to their rules in order to continually grow in their trading account. To arbitrarily open trades that are contrary to the rules and believe that they somehow win and will compensate all the losses is not a valid strategy.

Football – the ultimate mix of offence and defence

The best defense means nothing when your offense can’t do anything. You’ve heard it before: trading is all about great defense. But it is not entirely true. Only if you are good in offense and defense you have a chance. To know when we are not acting or are at risk is very important and it prevents you from losing money in hard times. On the other hand, traders also know when to be more aggressive with his positioning and when to let their profits run in the road.

Boxing – prepare yourself for the next trade

Boxing is an excellent example when it comes to being prepared and have a game plan. A boxer must only face one opponent at a time. Boxers study their opponent deeply before they enter the ring. And when it is time to fight, they have a specific and unique game plan that is tailored around their opponent’s strengths, weaknesses, and unique characteristics. This plan changes from fight to fight because each match and each opponent is different and requires a different tactic.

Traders need a trading plan where they analyze the current market conditions, means of pricing measures and other parameters. Then, they must come forward with specific handelsidéer and possible handelsuppsättningar. Traders must be prepared for all possible outcomes and know exactly what to do under what circumstances. If you have not done your homework, you should not compete and go back to analyze the situation.

Ice hockey – plan ahead

You don’t need to be a prospelare to understand the simple principles, but the consequences for trade are important. Traders focus too much on the left side of their charts. They spend too much time on the past. During the uptrenden continues the merchants to call the tops and open short positions to higher variable rates, instead of seeing what really happens and go with the obvious trend. Think ahead and put it all in context, otherwise you will be taken out of the game.

Chess – do not lose your head

Amatörschackspelare lose their focus too quickly. By making impulsive moves without thinking about the consequences they expose their other pieces, and opens the way for their opponents to do even more damage. A good trader, just as a good chess player, need to consider to move forward and not lose their focus. Do not open a new trade after a loss in order to prove that you were right. It is better to go back, reassess the situation and then come up to a better playing field.

Säsongsport – a match doesn’t matter

A season in sports such as football, basketball, baseball and hockey consists simply of 30 or more games. Even if it is frustrating to lose, it is often not so important to win every single game in order to reach the overall goal to be number 1 at the end of the season. Those who make a mistake, analyze what they did wrong.

Make sure that you do not make the same mistake twice. Analyze what caused the loss, check to see if you made any mistakes and what you could have done better. Then write down your thoughts to remember them for next time. Traders without a review process in place, or who does not hold a handelsdagbok, to avoid a training and are doomed to repeat the same mistakes over and over again.

Team sports – understanding your position

Point guard is the team’s best passer and traders, and a Point guards job is to get the ball in the goal. Traders must also find their personal strengths and identify what they are best at. It all starts with choosing the right market.

Are you a share, currency, or alternativhandlare? Are you better on the PA, do you need indicators or both? You are better to trade higher or lower timeframes? Do you prefer to trade with high or low volatility?

To answer these questions is not easy and it is a process. You must find your own way as a trader.

Your profit is not important.

Traders spend much of their time searching for trading methods that promise a higher profit while they are often much closer to success than they think. A winner who is # 1 in their field are no better than the that consistently gives their best game every time.

Trying to find that special handelsmetoden with a perfect win will keep you from making real progress as a trader.

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