When discussing and exploring the world of Forex, the comparison with boxing is frequently highlighted due to several reasons. Although these reasons are not apparent at a first glance, the similarities in certain aspects cannot be readily ignored. Thus, even though the actual experience is radically different, there are various similarities when one compares the preparation, training habits and the mindsets of a boxer and a trader, which is the focus of this article.
Thus, these aspects of a trader and a boxer, which help them in achieving their respective endeavors, are described in brief below:
Possessing the Right Mindset: A critical part of achieving success in boxing is mental preparation. Boxers know that the risk of getting hurt is higher every time they step into the ring. They must possess the right frame of mind before they begin their match to concentrate on their goals.
Forex Traders face the same kind of risk. Any small miscalculation or uninformed trading decision can end up compromising their whole trading capital. Thus, like a boxer, they too have to prepare themselves mentally to cope up with the level of risk which is unavoidable in the world of forex trading.
Proper Training and Preparation: Boxers are required to spend endless hours cultivating their skills by practicing, as well as hitting the gym and studying their opponents before they face them. All of these are part of a preparation to ensure that they get themselves in the best shape before facing off in their ring. Similarly, traders are required to prepare themselves, testing their strategies and studying price charts and trend lines if they want to achieve success as a forex trader.
Sticking to a Plan: Staying in the right mindset depends on planning and sticking to it. Boxers are required to develop a plan containing the best combinations to attack and defend when in the ring. However, there is a tendency to deviate from the plan under such emotionally driven or adrenaline-filled situations. Boxers thus try to stick to their original plan, maintaining the discipline no matter what circumstance they are in.
Drawing a Parallel, traders are also required to stick to their trading plans, ensuring that there are no ill-informed or emotionally driven trading decisions. Traders have lost millions in the past because their judgment tends to get clouded when in a LIVE trading session and thus stray away from their original path.
Accepting that Losses are part of Winning: Every boxer, no matter how many accolades he/she has achieved, knows that success doesn’t last for forever and they need to accept losses in their career. Accepting losses are an integral part of boxing as well, as many boxers have bounced back after losing to an opponent.
Forex Traders also must recognize the importance of losses in their portfolio, because of the inherent risk in forex markets. The most important aspect of a trader is to maintain a positive risk: reward ratio, which means that trades should be profitable despite losses.
Winning Without Landing A Knockout: Very few boxers can land knockouts consistently and for the majority, they don’t come easily. Thus, boxers tend to focus solely on sticking to their original plan and executing certain moves that they have practiced. After all, boxing involves winning by scoring points and cumulatively wearing down an opponent.
In Forex terms, forex traders also need to accept that not all successful trades will be worth 1000 pips. Developing a profitable system, sticking to it and executing it accordingly is the best way to attain consistent profits in the long run.
Getting Back Up after a Knockdown: No matter how much training and preparation is undertaken by a competitor, the risk of getting knocked down by their opponent is very real. However, a big part of being a successful boxer is to get back up after getting kicked down.
Similarly, forex traders must understand that drawdowns can occur even if their strategy is a proven one. A winning strategy can have periods where its underperformers and traders experience a losing streak. Traders should always try to maintain a proper mindset, working towards their recovery and minimizing their losses.
For Forex traders, there are many registered and reputed brokers who help in achieving their goals in a secure and legitimate way. One such option is forex trading with IQ Option, a well-known high- quality Forex broker operating worldwide.
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