Boxing and Trading
Some complex things are easier to understand through analogies and metaphors.
What do boxing and trading have in common?
Nothing at first glance, but if you look closely…
1. You can't avoid the bumps.
Even the best boxers with incredible technique and reaction are not able to get away from all the blows.
At the same time, missing a shot does not mean losing, it's just part of the game.
It is the same in trading – it is impossible to avoid losses, they are part of the game.
Do not think that you are the best and will be able to avoid stop losses.
A professional trader takes stop losses for granted and does not worry about it - he just continues to trade as if nothing had happened.
They are waiting for the next opportunity to strike in order to win at a distance.
2. Miss a lot of punches instead of a single one that will knock you out.
The best boxers missed punches, but they had enough technique not to miss the hardest punches.
A true professional should be able to defend himself both in boxing and in trading.
Follow risk management and learn to identify your worst case scenario. Use an adequate position size, protect it with a stop loss, and always make sure that never, under any circumstances, one trade leads you to a margin call.
3. You don't have to win by knockout - winning on points is also a victory!
The audience loves a knockout because it looks beautiful and spectacular.
But most of the wins boxers get on points.
The best boxers are always focused and will not allow themselves to throw dangerous punches in the hope of winning with one punch.
They know that thanks to accurate and effective strikes, they can win without the risk of running into a counterattack.
In trading, you don't need to earn huge profits from a single trade. Regular small winning trades will add up over time. A professional trader always remains in control, and he knows that this advantage guarantees success in trading in the long term.
4. Control your emotions.
The fight doesn't start in the ring, the fight starts before the ring.
Every boxer feels this psychological pressure, but it does not lead the best astray, and even vice versa.
The best are able to influence and influence their rivals.
In trading, our enemy is you, or rather our emotions.
We must be able to control them, not let them influence us.
5. Preparation for each battle is unique.
Each new fight is special, because each new opponent uses his own style, has his own characteristics.
You need to be able to analyze both your own actions and the actions of a new opponent.
In trading, it boils down to the fact that after each closed position, you need to analyze it and understand where there were mistakes and where there were not.
This is an important job that will make you a professional.
6. You have to react to what is happening now.
Making a plan for the fight before the fight is a good strategy, but you need to be flexible enough to be able to change the plan at the right time if the situation requires it.
The best boxers were able to do this, unlike those who stuck to the plan even realizing that the plan has not worked for a long time.
Traders are most often very static and trade in reaction mode. Despite the fact that you must have a trading plan and follow it clearly, during some unexpected events you must be able to adapt to the changed market conditions. Amateurs often get "stuck in time" during bad periods – as a result, they get a knockout blow that went before them for a long time.
7. You have to go all the way from the beginning.
Tyson, Ali or Holyfield hardly made the decision that they would fight for the world title. They started boxing very early and could hardly imagine their future boxing career. They fought in dozens and hundreds of small fights in dilapidated halls and worked slowly until they were able to take a step on the big stage.
Traders should follow the same path. You can't decide to become a profitable trader right now. Most likely, you will go through several accounts, you will lose money for a month or a year, or even more; you will have to work 7 days a week for 12 hours a day without knowing whether all the effort spent will pay off and whether you will achieve your goal.
8. Become a master of the basics.
The best boxers are those boxers who perfectly master simple techniques: they move perfectly in the ring, hit effectively, defend perfectly, possess a dangerous hook and incredible endurance. The best boxers do not need to own a unique and outstanding technique or develop their own tricks and tricks – they train their skills on what really matters.
Only then will the trader have a chance of success when he masterfully masters the basic principles and techniques. Being able to perform multi-time frame analysis, understand how to read the price and its "mood", understand the basic principles of statistics, have a constant principle of setting the position size and risk management, as well as unquestioning adherence to their trading rules - all this is the basis of any successful trader.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
What do boxing and trading have in common?
Nothing at first glance, but if you look closely…
1. You can't avoid the bumps.
Even the best boxers with incredible technique and reaction are not able to get away from all the blows.
At the same time, missing a shot does not mean losing, it's just part of the game.
It is the same in trading – it is impossible to avoid losses, they are part of the game.
Do not think that you are the best and will be able to avoid stop losses.
A professional trader takes stop losses for granted and does not worry about it - he just continues to trade as if nothing had happened.
They are waiting for the next opportunity to strike in order to win at a distance.
2. Miss a lot of punches instead of a single one that will knock you out.
The best boxers missed punches, but they had enough technique not to miss the hardest punches.
A true professional should be able to defend himself both in boxing and in trading.
Follow risk management and learn to identify your worst case scenario. Use an adequate position size, protect it with a stop loss, and always make sure that never, under any circumstances, one trade leads you to a margin call.
3. You don't have to win by knockout - winning on points is also a victory!
The audience loves a knockout because it looks beautiful and spectacular.
But most of the wins boxers get on points.
The best boxers are always focused and will not allow themselves to throw dangerous punches in the hope of winning with one punch.
They know that thanks to accurate and effective strikes, they can win without the risk of running into a counterattack.
In trading, you don't need to earn huge profits from a single trade. Regular small winning trades will add up over time. A professional trader always remains in control, and he knows that this advantage guarantees success in trading in the long term.
4. Control your emotions.
The fight doesn't start in the ring, the fight starts before the ring.
Every boxer feels this psychological pressure, but it does not lead the best astray, and even vice versa.
The best are able to influence and influence their rivals.
In trading, our enemy is you, or rather our emotions.
We must be able to control them, not let them influence us.
5. Preparation for each battle is unique.
Each new fight is special, because each new opponent uses his own style, has his own characteristics.
You need to be able to analyze both your own actions and the actions of a new opponent.
In trading, it boils down to the fact that after each closed position, you need to analyze it and understand where there were mistakes and where there were not.
This is an important job that will make you a professional.
6. You have to react to what is happening now.
Making a plan for the fight before the fight is a good strategy, but you need to be flexible enough to be able to change the plan at the right time if the situation requires it.
The best boxers were able to do this, unlike those who stuck to the plan even realizing that the plan has not worked for a long time.
Traders are most often very static and trade in reaction mode. Despite the fact that you must have a trading plan and follow it clearly, during some unexpected events you must be able to adapt to the changed market conditions. Amateurs often get "stuck in time" during bad periods – as a result, they get a knockout blow that went before them for a long time.
7. You have to go all the way from the beginning.
Tyson, Ali or Holyfield hardly made the decision that they would fight for the world title. They started boxing very early and could hardly imagine their future boxing career. They fought in dozens and hundreds of small fights in dilapidated halls and worked slowly until they were able to take a step on the big stage.
Traders should follow the same path. You can't decide to become a profitable trader right now. Most likely, you will go through several accounts, you will lose money for a month or a year, or even more; you will have to work 7 days a week for 12 hours a day without knowing whether all the effort spent will pay off and whether you will achieve your goal.
8. Become a master of the basics.
The best boxers are those boxers who perfectly master simple techniques: they move perfectly in the ring, hit effectively, defend perfectly, possess a dangerous hook and incredible endurance. The best boxers do not need to own a unique and outstanding technique or develop their own tricks and tricks – they train their skills on what really matters.
Only then will the trader have a chance of success when he masterfully masters the basic principles and techniques. Being able to perform multi-time frame analysis, understand how to read the price and its "mood", understand the basic principles of statistics, have a constant principle of setting the position size and risk management, as well as unquestioning adherence to their trading rules - all this is the basis of any successful trader.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
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🌎WebSite: lingrid.org
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