What you can learn from professional sports traders

Trading is a prestationsspel and there are many similarities between trading and sport. Sports and especially team play offers a variety of concepts that can be translated to trading. The thinking and preparation that comes with professional sports illustrates nicely how a trader should approach his trade and what you should do to increase handelsprestandan.

What you don’t see makes all the difference
A boxing match is usually not be longer than 1 hour and football games going on 90 minutes. The spectators admire the skills of professional athletes who make all of this easier. What the spectators don’t get to see is the work that is required for it to be so simple. Professional athletes start their career when they are children and when the public get to see them, they have already been practicing daily for years or decades.
In addition, the ends professional athletes never work on their skills. Every day exercise of the basic concepts in their areas to make them even more effective. But professional athletes are working not only with their physical skills but also mental training to create a complete athlete.

Question to yourself: Is your handelsrutin and preparation professional? Be honest with yourself and evaluate how you relate to your own trading.

Each opponent is different
In sports, each match is different because the opponent changed and each opponent comes with a different skill, attitude and way to play. In order to maximize your chances of winning, therefore, you must adapt yourself to your specific opponents. Not only can you use the same strategy for every match and expect to win with shortcuts.

In the trade, any instrument, time frame, and market a variety of properties. Volatility is constantly changing, and how a particular instrument behaves also differs from handelssessionen, because how merchants deal with of the instruments are different.

To increase your handelsprestanda, monitor carefully if some of the settings and trading strategies consistently loses on the specific instruments or market conditions. The way in which you set the SL and TP need to be changed, based on different market conditions. If you want to become a professional trader it is not enough to select a trading strategy and blindly apply it to different conditions.

During a season it is not important to lose a single game
During a season, playing the team of 10, 20 or 30 different matches and although no one likes to lose, know professional athletes that they don’t need to win every match in order to be number 1 at the end of the season.

The following graphics illustrate the vinstfrekvensen, hit-frequency or strejkfrekvensen for världsklassutövare in various sports. You can easily see that a hit frequency of just 50% is not even necessary to be #1 in any branch. Focusing on profits is a amatörfel.

You can be a profitable trader and generate a great income from your trade with a profit of less than 50%. Regardless of whether you can make money or not, this depends on a variety of factors, for example how you use the concept of riskbelöningsförhållande, your risk and cash management and your line of thought – just to name a few.

What you can learn from sports
You would be able to assume that traders know much when it comes to positioning, but you can’t be far from the truth. The investment strategy of the average trader does not go beyond that, choosing a random number like 1% or 2% and apply it on each individual trade.

People who professionally play know that the odds are very important and they are one of the most important factors when it comes to choosing how much to be at risk. A good sports team will have a higher chance to win and the bettor is willing to risk more money on the good team. By risking more on good law and risking less on the team with the lower chance to win, they can achieve very stable results.

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