The Similarities Between Trading and Sport

Filed under: Learn Forex Trading |

I would like to draw a little analogy today between the disciplines of trading and the world of professional sport. The point of this is to show you the mindset and method of being a professional trader – and to show how disciplined and motivated you have to be to become a successful trader.

 

Any sport would really do for this analogy, but let’s take the sport of professional football to be more specific. To be successful in the world of professional sport, there are certain things that can be done to tip the odds in your favour (just as in the world of professional trading!). But just as in trading, there are no certainties. All that professional football managers and players can is to prepare as much as possible for any eventualities in the game, to be well rested and in good health, to be positive but not over-confident, and above all – to play in a way that tips the odds of success in their favour. Strangely enough, these are all of the ingredients that one needs to be successful in the world of forex trading.

 

Just as in football, all a trader can do is to do their homework (by studying their charts and plotting areas of support/resistance, etc.), and try to tip the odds of success in their favour. In football, any team can lose one game with a little bad luck – no matter how well they play. But over the course of a season, if they are playing in the right way and have an edge, they know they will come out on top. And this is how it is with trading. Any one trade setup can lose, no matter how good it might be. But over a long series of trades, if you have a good market edge, then you too should come out on top.

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