Source: HOW DOES BINARY OPTIONS WORK?
I have realised a professional fisherman is just as a professional market trader. They both must learn their craft to the point of mastery. A pro fisherman must develop an expert ability to feel the sea while the pro market trader must develop a canny ability to sense the market.
In yet both need a highly-skilled sickeningly patient to succeed in the daily business. Both professions require many of the same attributes such as an insatiable desire to master the craft, continuously learning and expanding one’s knowledge and skill, the willingness to do whatever it takes to win, and more. All of the attributes mentioned above require intense passion, discipline and patience.
Market trader must analyse the market like a fisherman reads the water…
The first thing the market traders need to learn from successful fishermen to apply to their trading is that they need to understand the market like a fisherman reads the water conditions. A fisherman will consider many variables RIGHT BEFORE they cast their line into the water because they know that to not do it will necessarily mean they are shooting in the dark, so to say.
Experienced anglers will even tell you that when to fish can also be affected by where to fish. Too many SEARING AND HOT days during the summer can adversely affect fishing in shallow lakes, ponds, and rivers since higher water temperatures can reduce oxygen in the water and cause fish to become sluggish.
Commercial and recreational fishermen use their extensive knowledge of both when and where to fish to significantly improve their catches. These fishermen take various factors into account: predicting tides as well as understanding tidal currents, how much sunlight an area of water has received recently, warming or cooling trends, the depth at which fish are found, storm and weather patterns, wind and tidal flows when saltwater fishing. In some areas, high tidal currents will concentrate bait and small fish, which attracts larger fish. See, there is a multitude of variables that go into professional fishing operations, much more than the average person CAN think OF.
As a MARKET trader, you need to understand HOW TO READ THE MARKET just as a fisherman reads the water. You must understand the market’s ebb and flow before you go ‘casting your bait’ or your money into the market. It’s important that you study the market and read it as like you read a book: you should know what happened on the previous page to understand the current page. So, and really learn it’s peculiarity and become a master of it, just as a fisherman is a master of reading and understanding the different variables that affect water conditions to attract fish.
Professional fishermen are snipers and so the market trader…must be!
Professional fishermen behave very much like a sniper in the military. A pro fisherman doesn’t move around often because they would cost them more fuel, time and labour preparing rigs each time they run, and of course more baits. They are seasoned professionals who strategically plan where to fish, reading the ocean and the weather condition.
A fisherman needs an edge or a strategy to catch fish, so a market trader needs an edge in the market. A tip of a market trader is what put the odds of trading success in his favour. It requires you to be educated and prepared, just as a professional fisherman does.
Does a professional fisherman just wake up and run out to his boat and zoom off to the middle of a lake or ocean and cast his line into the water? Of course not! So, when looking at it from this perspective, how silly does it seem for you to go open your charts up and just enter a trade for basically no reason at all? IT IS Madness OTHERWISE!
Just as a fisherman plans when and where to fish for the best possible haul, you need to plan how you will trade: what your trading edge is, how you will manage your risk and your exits as well as yourself. You must do this right BEFORE you enter the market if you want to give yourself the best possible chance of trading success.
Patience is key in fishing and so for market trading…
If you’ve ever gone fishing, you know it requires a lot of patience. However, unlike trading, you are basically forced to be patient in fishing. IN market trading, you can just set up a trade up and enter it for no reason other than you want to risk some money, this will, of course, destroy your trading account.
A successful fisherman will remain in his pre-planned high-probability fishing spot for as long as he deems necessary. He will not give up after 20 minutes with on bites, he will persist and wait patiently, perhaps re-casting, but not moving areas frequently. Similarly, as a trader, you may have to wait days or even weeks for a high-probability trade setup to come along before you should put your bait or money into the ‘water’ to try and catch a big move in the market.
Patience is indeed what separates successful traders from the masses who lose their money.
Another thing that winners have… and this might be the most critical trait they carry… is the ability to put their mistakes and shortcomings out of the picture. They don’t blame anyone or anything for their errors or problems. They never make excuses, and they don’t forget. They just move forward.
It’s like they can flip a toggle switch in their mind that allows them to turn those bad days into a non-issue ones. The past is just that, nothing more. It has no effect on the future. The next cast is a new opportunity, and so is the next day…
A market trader needs the mindset of a winner. You have to move forward and not dwell on bad days of losing trades. You are going to have losing trades, but if you let them linger in your mind and take over your thinking, you will end up losing, even more, money as a result.
Just as a fisherman has to accept bad days with little or no good catches are part of his performance, so a market trader must have to accept that there will be many slow days in trading where there either are no good trades to take, or you get a loss instead of a winner. How you handle these situations and if you can move forward without being bogged down by them, will significantly influence your long-term trading results.
If you’re out fishing and you immediately drop all your bait into the water once you get out on your boat, how the hell are you going to catch the big prize fish? Well, impossible you will succeed of course! When you’re trading, if you immediately go and risk way too much, and lose a significant portion of your risk capital, how are you going to stick around long enough to catch some big trades? You won’t too! A fisherman needs to manage his bait correctly just like a professional trader manages his bankroll. You must not over-trade or over-leverage just like you must not waste your baits if you’re a pro fishermen.
A good fisherman is nothing if prepared. He must learn to cast his line in the right places, first and foremost. Eventually, being well-prepared and well-educated on all the various variables of fishing will result in developing successful fishing skills that put a fisherman into the upper-echelon of fishing professionals.Right! Ultimately, what this does, is develop a gut feel for fishing…a sort of ‘sixth sense’ that allows these fishermen to instantly recognise where and when to fish. Similarly, after learning how to trade and putting that knowledge to practice, a market trader will develop deep trading skill that ultimately results in a refined gut trading feel that will put you one in the top 20% of traders who are successful.