Forex: An Analogy for Life

Filed under: Learn Forex Trading |

I think that you can learn so much about yourself from trading the forex markets. Will you give up at the first sign of trouble? Will you bottle it when you see a good trade and not pull the trigger? Will you persevere through adversity and studying harder when things are not going well? I find it a real challenge. It’s like the biggest chess game in the world; and as an ex-chess player (okay, so I was only school champion!), it is a game I like to play.

 

In life, when we need to take a break and need some rest bite, if we’re lucky, we have people there to support us. If not, then thing may just fall apart rather quickly. The forex market is like this too. There are support levels in the market that allow price to consolidate and take a break. If there is no support level, then the market can often fall away. These are mass psychological support levels, and they are based on what people have done in the past.

 

In life, whenever we push hard and try to achieve something, it is often not easy and we inevitably encounter some kind of resistance. This might come in the form of an added challenge, or some kind of adversity. It often delays our progress and sometimes, we have to accept that we are just not currently equipped to break through the barrier – whatever it may be.

 

The forex market, like life, also has resistance levels that are often difficult to break through. However, once these levels are broken, progress tends to be much easier.

 

There are so many analogies I could make between trading forex and living life. However, I think you have got the point with the support and resistance analogies, so I will leave you with that for today…*

 

*Others to consider are money management skills, risk-reward, being unemotional in your business, and being organized.

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