What can forex traders learn from athletes
Can we draw lessons from very competitive endeavours, such as top-ranked sporting contests, to apply to our own trading? I believe we can.
I found this article on NFL footbal players over the weekend, it looks at how the winners get to the point of seeing what is likely to happen before it does. Getting ahead of the game. Here are a few lines that highlight the similarities with trading:
victories also redound to players who can outthink their adversaries. Because there are so few football games in a season, football players generally don’t learn about members of other teams by playing against them… Football players must master the opposition conceptually. In addition to the raw speed and strength that professional football requires, the game involves more mental preparation than any other team sport.
Traders, too, have not played against the upcoming opposition – we don’t know what Monday will bring, how the price action will unfold, for example, and must prepare conceptually.
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On being ready:
“I never ask if a player has the will to win. I ask if he has the will to prepare.”
That has got to be one of the most boring pieces of advice ever. And possibly one of the best. How do you, as a trader prepare?
Every day is an exam.
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On the time pressure that you are going to be under:
Fitzpatrick has never found much of a relation between his academic talents and his football skills, but, he said, he knew that his ability to solve problems on the clock would distinguish him
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And, finally, the two points that really jumped out at me:
Situational awareness
“Football intelligence to me is situational awareness… The variables in football are so many. Every play is a decision and you do it at full speed. Life involves more thought.”
Don't get hung up on one piece of news. I see this so often in traders: "The price can't do this 'cause the central bank just said the opposite". Remember, the variables are so many, coming at you in high speed. Don't live in the past, even if it was just 2 minutes ago!
Yep, a rear view is handy, but don't forget to look at what's happening ahead.
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And which brings me to:
Looking for changes:
As he gazes across the line of scrimmage, he looks “for things that don’t make sense.”
For example: If the news is negative and the price isn't falling, does that make sense?
Here’s the link: What makes a football player smart?
