When you enter the Forex trading ring it is very similar to entering the sparring ring in martial arts and Forex trading both deal with technique. A trader may not see themselves as combative or aggressively fighting their way to victory, but there are lessons in martial arts that can be applied to Forex trading.
The greatest difference between Forex trading and martial arts is that in Forex you do not have a physical opponent. You are not entering the trading ring to take on an actual person. You are sparring against the market. And though it is very real, it is not a person with whom you can make physical contact with. The only person you fight with during trading is yourself. And in many ways, this is similar to martial arts.
Martial arts, like Forex trading, takes a great deal of focus. Your mind must be in the game, and you have to be ready to make the most effective attack. In order to do this, one must have knowledge about the different techniques they can apply. Just as in martial arts the actual learning of the techniques does not take that long. But mastering the techniques so they become a part of you and give effective results takes years. A trader wants to get to the point where each step in trading can be taken without thought. This takes years of practice and great dedication to honing your trading skills. Just as how a sparer cannot walk into the ring after a couple practices and be at the peak of their performance, a trader cannot expect to trade on demo account for a couple months and consider themselves a master at trading. It takes years to develop the skills and mindset necessary for making consistent profits.
The market, like an actual martial arts opponent, can come at you with you a number of different moves and you need to be ready for it. Martial arts is about the application of the technique, not merely the technique itself. This is exactly like Forex trading where experience and applying the correct knowledge you learn is the most important thing. Anyone can take a course, setup an account, and learn different trading styles, but without dedication to actually trading in the most effective manner, a trader will not develop an edge and they will struggle to make consistent profits. The best way to know how to navigate in the market, and know when to apply your “moves” is to actually be in the market.
Finally, martial arts and trading are mental games. Martial arts may seem like a very physically intense sport, but majority of what takes place in the ring is internal and mental. Trading is no different. If you watch a pro trader, you’ll think trading is nothing more than looking at charts and making trades but within the mind of that trader are a lot of psychological effects at play. Laying good psychological foundation, so it looks effortless, takes a lot of effort. It means learning about yourself, your good habits and the ones that hinder you. It involves unblocking yourself from fear. Because like a martial artist you cannot gain effective results if you’re afraid of taking some painful hits. It also involves consistency so that every step, every task, every move, is habitual and done without mental or emotional strain.
Developing your Forex trading skills is like developing a skill in martial arts. It takes years before it becomes part of you and effortless. It takes experience and actual application of the skill, and it takes mental preparation and focus so there are no psychological restraints keeping you from achieving results.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer