Forex Is Like Soccer (Football)

Forex trading is not a team sport but in many ways Forex is like soccer, the sport known as football everywhere but in the USA and Canada. Forex is like soccer in that you need to know the rules and develop the appropriate skills in order to play the game. And you need to scout out the opposition. This means the other team in soccer and it means the market in Forex currency trading. Then you need to develop a strategy for scoring goals in soccer and Forex technical strategies to earn profits in the currency markets. Forex is like soccer in that you need to keep your head when things get crazy. The best chance to score a goal is often when action is intense and players are not in position. The best chances for Forex profits are commonly in a volatile market. Forex is like soccer in that the prepared player is likely to succeed when everyone else is running around in a frenzy of unordered activity. Here are a few more thoughts about how Forex is like soccer.

Fear, Greed, Forex and Soccer

Mistakes in trading Forex are where we can make money. Here we are talking about the mistakes of others. Fear and greed drive the currency markets in the short term, especially when things get really volatile. Getting into the heads of the other traders helps you anticipate the market and profit thereby. Getting into the head of the opposing player in soccer likewise lets you get free of a defender and direct a header into the opposing goal. Reading market sentiment is how short term traders make their money. They anticipate the ups and downs of the market and trade accordingly. Likewise, the wise soccer player anticipates the moves of the opposition and plans his strategy and tactics to take advantage of the other players’ weaknesses. Forex is like soccer in that we learn to capitalize on the mistakes of others.

A Soccer, Forex Trading System

A well designed Forex currency trading system is likely to make money. Likewise a soccer strategy that takes the best advantage of the strengths of the various players on the team leads to a winning season, tournament victories and a World Cup Trophy. In Forex one picks a promising currency pair, researches the fundamentals that drive the relative prices of that pair and then follows evolving market sentiment. In soccer one scouts the opposing team and its individual players both for their skill sets and how they perform under the pressure of a game. In each case the successful person executes trades or passes in order to profit or score as individual circumstances present themselves.

Where Forex Is Not Like Soccer

In soccer, if you and your team are good enough, you can win Olympic gold medals or the FIFA World Cup. There is no single trophy in Forex. The rewards in Forex are your profits, gained trade by trade, week by week, month by month and year by year. You can become rich trading currencies and remain completely anonymous, even as you travel to Brazil, stay in a Five Star hotel and attend World Cup matches.