Forex Trading Lessons from Michael Jordan
2016 ends with Forbes naming Michael Jordan as the Highest Paid Athlete of all time, at $1.7 billion since he started his glowing career in 1984. He retired in 2003, but Michael Jordan is credited with having massively contributed to the global appeal of the sport, and in fact, basketball matches were sold out in all the matches he was present. He won many championships and countless individual accolades. His ‘magic’ and amazing prowess was only matched by his exceptional work ethic.
Forex trading is usually compared to sports, such as basketball, and there is plenty to be learned from the success of the greatest sportsman ever.
Don’t Be Afraid of Losing
“If you’re trying to achieve, there are going to be roadblocks. I’ve had them; everybody has had them. But obstacles don’t have to stop you.."
Every trader's dream is to grow to be a professional, make enough money out of Forex trading to sustain themselves, achieve retirement, or even sustain their luxuries. But as we all know; trading is not easy.
The journey to becoming a professional trader is as daunting as it can get. There are many mistakes along the way: poor decision-making, revenge trading, overtrading, overleveraging, and poor money management. These mistakes can sometimes result in massive losses, but lessons should be learned from them. View these as roadblocks and over time, learn how to avoid them.
Practice as Much as You Can
“I have missed more than 9000 shots in my career...”
Michael was such an efficient shot taker that it was difficult to imagine him missing a shot. Even at the peak of his powers, Michael was known to take as many as 1000 shots in training! He sure missed a lot, but he also perfected his skill such that, when it mattered, in a championship game, his execution was almost flawless.
The goal of many traders is to become fulltime professionals. But this does not mean they will be making live trades all day all the time. In fact, the job description of a fulltime trader is: part-time trading, fulltime back testing. Traders should spend more time training as hard as they can, to improve their skills and techniques as much as possible, so as to be ‘almost flawless’ when it matters - in a live trading environment.
Get the Basics Right
“The minute you get away from fundamentals - whether its proper technique, work ethic or mental preparation - the bottom can fall out of your game, your schoolwork, your job, or whatever you’re doing”
Michael did all the ‘textbook stuff’ right. Whether it was movement, positioning, dribbling, transitioning or any other fundamental aspects known by all other players, he never took anything for granted. Sure, he was an exceptional player who could get away with some mistakes, but he always put the right foot in the right place, all the time.
In Forex trading, there are lots of fundamentals that many traders take for granted: like the use of stop loss orders and effective leveraging. The Forex market does not leave room for second guessing. You should understand all the fundamentals of trading and stick religiously to the basic principles of successful trading. Your trading work ethic should be exceptional, your discipline top notch at all times as well as all the other ‘basic truths’ known by all forex traders. Many traders desire using sophisticated trading systems and strategies, which may result in them losing focus on fundamentals like ‘trading in the direction of the trend’. The same way Jordan spent as much time training on basic footwork as taking ‘noble’ shots, is the same way traders should prioritize their energy on basics as they do on other ‘sophisticated’ trading strategies.
Michael Jordan is an incredibly phenomenal basketball player. He teaches us that taking losses as part of the game, constant practice and getting the fundamentals right can ensure success, even in our Forex trading careers.
Forex Reviews Info
How to Effectively Navigate the Jungle of Forex Reviews
Getting to know as much as possible about the Foreign Exchange trading industry before you make your first trade is essential for success. More often than not, the first place that a retail trader looks at when carrying out initial research is a review website. Because there are so many Forex brokers setting up shop nowadays, it has become difficult to keep track of the features available in the marketplace.
Forex review websites contain all the important information that you need with regard to currency market operators and trading systems via a range of articles, testimonials and comparison tables, which help to match users to brokers who cater to their experience and trading style.
Carry Out Due Diligence on the Review Sites You Use
A key piece of advice that experienced Forex traders offer to newbies is that they have to be vigilant to avoid a scam or getting fooled, especially by the many partial review websites. This is because most of these websites are affiliated to the brokers listed on the sites. Although there is no law against this practice, it is still important that you are aware of it. Never take online testimonials and reviews as the gospel truth – always double-check the information with the broker’s actual website to ensure that the information is accurate and objective.
Look for Objective and Impartial Review Sites
When searching for a Forex review, the first thing you should look out for is if the site offers objective and impartial reviews. If a website gains a reputation for being unbiased, it will quickly gain the trust of its visitors and followers because the broker is transparent. One of the things that often compromise the objectivity of a review site is its affiliate relationship with brokers. However, this is not always the case, as there are many review websites that explicitly state the agreements that they have in place with any brokers they promote.