What Are the Similarities of Forex Traders with Boxers?
Lately in Indonesia, the name of Manny “Pacman” Pacquiao – a professional Filipino boxer – is more famous than usual, because he has voiced asking President Joko Widodo to forgive Mary Jane Veloso – a death row inmate in a drug case – who is also from the Philippines. A few days ago, Pacman fought in a boxing ring against Floyd Mayweather, Jr.at MGM Grand Arena, Las Vegas. Mayweather won the numbers in the match, although many people – including “Concrete Neck” Mike Tyson – judged that Pacman was actually more worthy of being a champion.Okay, despite the controversy over the match and the Pacman solidarity action for Mary Jane, I prefer to discuss the similarities of forex trading with boxing matches.
How come there really is?
I am not a professional boxer. Boxing can also be said to have no. But I like watching boxing matches since being fascinated by Muhammad Ali and Mike Tyson. I think it’s enough to understand some of the points that a boxer has in common with a forex trader .
Apart from cheating or boxing match-fixing scandals, there are several points that become the equation. We peel them one by one.
Planning . Plan everything carefully. A champion boxer always prepares physically and mentally through non-light training. Every time he will face a match, he also always prepares a strategy to face his opponent.He studied each opponent’s movements and prepared anticipatory steps. Although often bragging will defeat his opponent in a number of rounds (as was done by Muhammad Ali’s “Big Mouth”), careful and careful preparation is always done. Indeed, it shows that he does not underestimate his opponent.
Likewise with a trader. A “champion” trader never underestimates the market. He always thought that bad things could happen, for this reason he prepared a trading plan that included capital management and risk.When he “fought” on the market, he never forgot his trading plan.
No need to always look aggressive
Pacman appeared more aggressive than Mayweather, but in fact Mayweather came out as champion. Okay, maybe – again, maybe – there was engineering in that match. I myself am a Pacman fan .
But apart from that possibility, aggressiveness is indeed not a determining factor whether a boxer wins the match. Then what?
Blow accuracy. That is what determines besides strength and speed. The important thing is not the number of blows that are put on, but whether the blow is a blow or not. A lot and a lot is indeed ideal, but it can’t be as perfect as that. In addition, it certainly drains more stamina. Though maintaining stamina is also very important, that’s why strategy settings are needed. There is a time to survive, there is also the right time to attack.
A trader should think so too. You don’t need to make transactions at any time. When making a transaction, there is no need to “feed” all the “bullets” you have. That will only drain your capital in a short time.
Look for the right momentum to make transactions. Don’t be blind. Save your “stamina”, at the same time you will save capital so as not to overtrade.
Dare to face risks
The most “mild” risk faced by a boxer when fighting in the ring is hit by an opponent. At least swollen eyes. The worst risk? Dead. This, of course, if not preceded by careful preparation.
Even though, a boxer still stands bravely facing the risk. He wasn’t afraid.Why? Because he has prepared himself, of course. Besides that, he realized, being hit was the consequence of the match. If you want to be a boxing champion, don’t be afraid of being hit by boxing. No pain, no gain.
In forex trading of course there is no risk of bruising eyes. The risk faced is loss . A champion trader understands very well that loss is an integral part of trading. He did not falter because he had prepared his strategy and anticipation. With that “weapon”, he will have the opportunity to change risk into unlimited profit potential. Without that “weapon”, “death” will approach, which in trading means your money is sold out. No trace.
A boxer may not always face the same opponent. It is normal for every boxer to have a different fighting style. There are boxer styles like Muhammad Ali, in-fighter styles such as Mike Tyson, brawler styles like George Foreman, boxer-puncher styles like Manny Pacquiao, or counter-punchers like Floyd Mayweather, Jr. etc….
In essence, thus, of course there must also be a variety of strategies used.
Even though the strategy has been designed, there is still an “X” factor that causes the plan to not run smoothly. If so, there must be a “Plan B”that can be run. That’s where the “art” is. The inability to adjust the fighting style with diverse opponents will prevent a boxer from winning.
In forex trading too. The market is always changing. Very dynamic.Therefore a trader must be able to adjust the trading strategy he has with dynamic market conditions. It is impossible for a strategy to work well in all market conditions. Therefore, having a ” backup plan” becomes very important.
When the boxer loses, he will receive it despite the disappointment. He will not look for scapegoats. Even if he feels dissatisfied, he will ask for a rematch and that means another match, at a later time. That is the attitude of a champion.
He will not dissolve in disappointment. He will “move on” and be busy again in preparation for the next match. There is no time to lament the past defeat..
In trading, “defeat” means loss . Champion traders will not dissolve in grief when they have just experienced a loss. There was no attempt to find justification such as saying, “Ah, the market is n’t right !”
He will immediately conduct an evaluation and improve what is considered necessary, then be ready to go back to the market the next day.
So, be a tough trader. Become a champion trader.