Trading Like An Archer: Picking the Very Best Market Conditions

Filed under: Learn Forex Trading |

 

Screen shot 2013-07-17 at 10.07.31I have been playing a little archery lately on my Nintendo wii console, and in the game, the target moves around, the wind changes, and objects periodically move in front of the target. As such, you have to wait for the exact right moment and conditions before releasing your arrow, and you have to stay focussed on the target until those conditions are met. My father also plays archery in the real world – and I know for a fact that some strength and endurance are needed to hold that bow steady, as there is a lot of tension in the string. Anyway, all of this got me thinking about trading, and making comparisons between archery and trading the forex markets. Strangely, there are a number of similarities with the way that I trade.

 

When trading the forex market, you also need to be similarly patient and have a good deal of endurance. Ideal market conditions do not line up very often, and you need to be ready when they do. Just like in the wii game, there are a number of factors that can influence the market – some, such as fundamental news, can be distractions, while others, such as big institutional trades, can shift the market. However, when conditions are right, and all of your criteria for a good trade are lined up, you need to have the conviction to take the trade without deliberation. You need to make the shot – otherwise, the opportunity may be lost.

 

Finally, just like in archery, where you usually have three shots per round, in forex, you will not have an unlimited amount of chances to make a profit. For starters, you will be limited by your capital, and you will also be limited by how many good trade opportunities there are. If you fire arrows indiscriminately, then you will eventually run out of arrows and be out of the game – and this is also true when trading forex. So try to preserve your capital for when a good opportunity comes along, otherwise, you may well be ruing those wild, speculative shots.

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