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 hits.
- 2. Miss a lot of hits instead of just one that will knock you out.
- 3. You don’t have to win by knockout, winning on points is also a victory!
- 4. Control your emotions.
- 5. The preparation for each battle is unique.
- 6. You have to react to what is happening now.
- 7. You have to go all the way from the beginning.
- 8. Become a master of the basics.
1. You can’t avoid hits.
Even the best boxers with incredible technique and reaction can’t walk away from every punch.
At the same time, missing a shot doesn’t 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.
Don’t think you are the best and you will be able to avoid stop losses.
A professional trader takes the stop loss for granted and does not care about it it just continues to operate as if nothing had happened.
They are waiting for the next opportunity to attack to win from a distance.
2. Miss a lot of hits instead of just 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 must be able to hold his own in both boxing and trading.
Follow risk management and learn to identify the worst case scenario. Use an appropriate position size, protect it with a stop loss, and always make sure that you never, under any circumstances, take a trade into a margin call.
3. You don’t have to win by knockout, winning on points is also a victory!
The public loves a knockout because it looks beautiful and spectacular.
But most win boxers get 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 precise and effective strikes, they can win without the risk of meeting a counterattack.
In trading, you do not need to make huge profits from a single trade. Small regular winning trades will add up over time. A professional trader is always in control, and knows that this advantage guarantees long-term trading success.
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 doesn’t lead the best astray, and even vice versa.
The best are able to influence and influence their rivals.
In trading, our enemy are you, or rather our emotions.
We must be able to control them, not let them influence us.
5. The preparation for each battle is unique.
Each new fight is special, because each new opponent uses his own style, has their 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 weren’t.
This is important work that will make you a professional.
6. You have to react to what is happening now.
Making a fight plan before the fight is a good strategy, but you should be flexible enough to be able to change the plan at the right time if the situation calls for it.
The best fighters were able to do this, unlike those who stuck to the plan, even realizing that the plan hasn’t worked for a long time.
Operators are usually very static and operate in reaction mode. Although you must have a trading plan and follow it clearly, during some unexpected events you must be able to adapt to changing market conditions. Fans often get “stuck in time” during bad periods, as a result, they get a knockout blow that preceded them by a long time.
7. You have to go all the way from the beginning.
Tyson, Ali or Holyfield barely 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 dozens and hundreds of small fights in dilapidated halls and worked slowly until they could give a step on the big stage.
Merchants must follow the same path. You cannot decide to become a profitable trader right now. You will most likely go through several accounts , 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 if all the effort invested will pay off their fruits and if you will achieve your goal.
8. Become a master of the basics.
The best boxers are those boxers who dominate the simple techniques perfectly: they move perfectly in the ring, they strike effectively, they defend perfectly, they possess a dangerous hook and incredible stamina. The best boxers do not need to possess a unique and outstanding technique or develop their own tricks and tricks, train their skills in what really matters.
Only then will the trader have a chance to succeed when he masterfully masters the basic principles and techniques. Being able to perform analysis on multiple time frames, understanding how to read the price and its “mood”, understanding the basic principles of statistics, having a consistent principle of setting position size and risk management, as well as the unquestionable fulfillment of 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’ll be happy