Trading has a lot in common with how games like football are played. Success leaves clues and you can learn from people such as athletes in how to become successful in any endeavor
2. Watching the Super Bowl, I couldn't
help but think how football is similar
with trading. Not only similar but
offers an opportunity to learn
something from the gridiron that can
aid you in changing your thought
process and how you approach trading
in general.
3. Before players even step on the field, they
have spent years working through the
basics.
Even though they were itching for the big
stage, pro's had to wait until they were
ready to compete at the highest levels.
4. The good thing is that there is
someone else that gives them the nod.
They will only compete at the highest
levels if someone is willing to take a
risk on them.
5. With traders, far too many think they
are ready and promptly end up on the
losing side of the career.
There is nobody to stop them and ask them:
6. 1. Have you been able to execute 25 plus trades without a
mistake?
2. Do you fully understand risk and how to manage your
positions/exposure?
3. Are you fully aware of the psychological factors that can take
a skilled trader and turn them into road kill?
Let's head to game day.
7. In the locker room, players get into the
zone while reviewing the plays that may
unfold during the game. The zone is where
they clear everything unrelated to the task
at hand and the focus is directly on what
they are about to do.
8. The time before your actual trading
session is an important time.
This is where you must focus on the
upcoming task and laser focus your
attention to the trading business.
9. 1. Have you checked for any pending news
releases that may impact your trading?
2. Have your reviewed overnight and prior
days price action for any structure clues?
3. Have you gone through your trade plan
so you hammer home exactly what
constitutes setups and triggers?
10. When the game begins, players only
know that they will compete at the
highest level of their skill. The
outcome is unknown but what is
known is that every shift will have
each player committing 100% to
execute the plays called out by the QB.
11. When your trading setups begin, you
don't know if the outcome is a win or a
loss. What you do know is you must
strive for 100% effort in following the
plans you have laid out for your
trading business.
12. Failure to act on a setup could result in
missing a trade that may have been in
the win column.
You want to ingrain the habit of
execution when called for without
second guessing what you are doing.
13. What you also know is that without
the QB, there is no game.
For traders, their QB is their trading
account. Protecting that should be the
main focus because without your
account, your business is bankrupt.
14. During the game, the goal is to work
down the field towards the goal line
following plays laid out by the
coaching staff. Yard by yard, players
battle it out trying to gain yardage to
either gain a touchdown or get in
range for a field goal.
15. It can be a grind but they know that
short quick plays reduce the risk of an
interception.
When trading, you have certain setups
for certain market conditions.
16. Your job is to execute the plays when
the setups show themselves. You have
faith that over time, these plays will
add up to a healthy income from your
trading business.
17. Trade after trade, you top up your
account with wins that allows for
bigger position sizing which allows for
a bigger income.
18. Sometimes though, a massive risk
takes place on the field....
the Hail Mary.
19. The QB spots a player alone in the
endzone. With all the juice he can
muster, he aims at the player and
throws the ball. Soaring through the
air, the opposing team has a chance to
regroup because they can see what is
in play.
20. If the player catches the ball,
it was a great play.
If the ball is intercepted, everything
from a turnover to an opposing team
unleashing a 100 yard run for a
touchdown takes place.
21. In trading, think of that as the "sure
winner" where you throw out a
conservative risk profile and put up far
too much in capital on one trade.
22. If it pays off, you escaped danger.
If it loses, you have put yourself in a
much bigger financial hole then you
would have if you kept to the plan.
23. The Hail Mary trade is a huge risk and
many times can be a game changer.
In football, the team can always try to
recover the points.
25. You can see that the mindset and
actions of a trader often mimics those
of professionals that are at the top of
their game. Skill and mindset are the
hallmark of professionals of almost all
careers and is often the difference
between success and failure.
26. If I could have a sit down with each
person entering the trading world, I
would always tell them to approach it
like a professional or don't approach it
at all.
27. Take a lesson from those who are at
the top of their game in any other
career.
There are common traits that they all
share that allowed them to succeed
where others have fallen.
28. You owe it to yourself to think hard at
what traits makes a success.