HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

Things Football Can Teach Traders


As the 2022 FIFA World Cup countdown is fast approaching, football fans from around the globe are picking up the pace to gear up for the world’s most popular game. If we take a closer look, there are in fact many similarities between a pro football player and a seasoned trader. Here are six things the well-loved sport can teach traders about.  

#1 Things Can Change By The Minute

The high intensity and unpredictability of a football game translates perfectly to the chaotic ebb and flows of the financial markets. Developing a firm understanding of this turbulency allows a trader to adapt quickly and rationally to any situation. “Football’s beauty is its unpredictability”, as Arsene Wenger said, current FIFA’s Chief of Global Football Development.  

A team might be down 1-0 at one point in a game, but the deficit could be overcome with two quick-fire goals. In the case of trading, your short-term positions could also change direction depending on the economic events that take place, as well as the shift in supply and demand.   

A good example to remember would be England vs Brazil in the 2002 FIFA World Cup quarter finals. England’s Michael Owen scored a goal at 23rd minute and many fans were, at that point, doubtful about the all-powerful Brazil. However, Brazil tied the game just before half time, and subsequently at 50th minute, Ronaldinho surprised the crowd with a classic “fluke” freekick that eventually knocked England out of the tournament.  

#2 A Draw Can Be Seen As A Win 

When it comes to football and financial trading, many focus only on the wins, and even the losses.  However, there are occasions when the match ends in a draw, or a trade breaks even. Sometimes a draw match would still qualify the team for the next round, and likewise, a break-even trade could be a right decision to pull out from a bad loss.  

In a break-even trade, although we do not make a profit, there is no loss incurred. At little cost, there are takeaways and invaluable insights we could have learned. Equipped with growing experience, you always are able to open a new position.  

#3 Knowing When To Take A Loss 

Everybody wants to win, and no one wants to lose. However, knowing when to take a loss is also an essential part of setting yourself up for trading experience. Imagine a team losing with a score of 3-0, rather than committing more on the offensive and leaving the defence exposed, the losing team can attempt to limit the damage by shoring up their defence. This would prevent the game from being a blow out with the potential for scores to hit 7-0.  

In trading, knowing when to strengthen defences and manage risk would play a tremendous role in protecting one’s capital. When a trader does not know when to take a loss, over trading and over leveraging could result in the quick loss of capital.  

#4 Small Wins Can Add Up 

With strong defence, scoring just one goal could be enough to clutch the win. Likewise, small wins can accumulate over time to make you a profitable trader with a higher win-rate instead of  constantly aiming for big, unrealistic gains which often come with high risks of huge losses.  Remember that consistency is what transforms average to excellence. Hence, there is a difference between good trading and one good trade.  

#5 You Don’t Always Play The Same Opponent 

The number of CFD instruments in the financial markets is comparable to the many football teams around. The odds of winning can be improved through gameplay preparation, learning about their opponent, executing different tactics, formations etc. For the financial markets, traders can apply the same idea when looking at specific instruments, be it forex, commodities, stocks, indices or other products, enlisting different research methods and strategies to gain an edge over the markets.  

#6 The Team Matters 

When a goal is scored or when a game is won, it is not just credited to one man’s work, but rather the collective efforts from your teammates, the coaches, and other external factors such as the opposing teams’ gameplay and much more.  In the same vein, when a trade hits your take profit level, it is not solely down to the trader’s efforts, but also the market conditions, spreads, and trade execution speed just to name a few.  

Vantage’s client-centric attitude has allowed us to provide traders with the best conditions for trading with spreads as low as 0, leverage of up to 500:1, and $0 deposit fees. Vantage is committed to be a reliable teammate in your trading journey, sign up with a demo account here to begin your practice. Alternatively, if you’re ready to take a shot, you can also open a live account here. 

Take part in the Vantage World Cup Craze 

Whether an individual wants to be a professional football player, or a sound financial trader, effort and hard work needs to be in the equation. To develop a strong mindset that can analyse the opponent and produce a strategy to win are a few key transferable skills between both fields.  Passionate about the FIFA World Cup and financial trading? Join Vantage’s World Cup craze with up to USD $600 for grab!  

#source


RELATED

Trading Glossary: Forex key terms in the P-T

Forex, like every other country, has its own language, or particular terminology. Before learning a language, you must first master the alphabet...

Conquering the Clamor: Navigating Market Noise for Informed Decisions

In the whirlwind world of finance, market noise is a constant presence, creating a din that can easily muddle the decision-making process for traders and investors...

The Basics of Trading Psychology

Trading psychology is an often-overlooked aspect of trading, yet it can have significant impact on a trader’s performance. The term “psychology “refers to the mental and emotional state of a trader...

The Reasons Why 90% of Crypto Traders Lose Money

Even though trading as a whole, and cryptocurrency trading, in particular, is a potentially vastly profitable endeavor where one can make as much money in a month...

Stock Buybacks: Why Do Companies Buy Back Shares?

In recent years, buyback programs have become one of the growth drivers of U.S. stock markets, creating demand and reducing supply. Corporations have proved to be quite prominent buyers...

Why traders shouldn’t underestimate an Economic Calendar

Brace yourselves for the ultimate weapon in your trading arsenal - an Economic Calendar, revealing the future of financial markets. So, why should you care?

Guide to Expanding Your Forex Trading Account

The realm of forex trading is undeniably intricate. Yet, it is far from unattainable. It beckons to those equipped with determination and the right mindset...

The most famous stock traders and their trading tips

Who is the most successful day trader in the world? Who are the most famous stock traders on the planet? They come from different backgrounds with different career paths. But one is for sure...

The Gold Standard: A Comprehensive Look into the Advantages of Gold Trading

From ancient empires to contemporary financial systems, gold has long been recognized as a potent symbol of affluence, security, and durability. Its timeless allure has established it as an instrumental asset for traders and investors...

Forex Trading Abbreviations (Full List)

A list of professional terms of any sphere is the main instrument for users. Special words help to avoid misunderstanding while working process. They economize time and make life much easier...

Precious metals trading made clear: an Octa guide

With its unwavering commitment to clarity, the international broker Octa unravels another facet of trading. Grasp the essentials of precious metals trading in an uncomplicated, transparent manner...

Correlation, Portfolio Returns, and Strategic Hedging

The dance of correlations within a portfolio is a crucial subject for both experienced and budding investors. At the heart of investment strategies, understanding correlation not only protects the portfolio...

Currency trading made clear: an Octa guide

In keeping up with its clarity principle, the international broker Octa clarifies one aspect of trading at a time. Learn everything you need to know about currency trading, simply and transparently...

Top 7 Richest Forex Traders in the World

If you want to attain high achievements in a specific sphere, it is essential to learn its history, which we consider the foundation to your personal successful career in trading...

Why do people use MetaTrader 4?

MetaTrader 4 is a powerful tool for traders of all levels. Find out why so many people rely on it to power their trading success...

Comprehensive Guide to the Top Copy Trading Platforms in 2023

Copy trading is gaining traction among traders as an innovative way to leverage the expertise of seasoned players in the financial market. By mirroring the trades of successful traders...

The Evolution of Modern Investment Methods: An Exploration of Copy Trading and PAMM Services

Investment methodologies have traversed an intricate journey, and in today's digitized world, they've undergone a significant transformation. The ubiquity of the internet and cutting-edge computer technologies...

Best Divergence Indicator in Forex Trading

Profit is what all traders aim at while working on the stock market. They use a variety of helpers to reach the goal. The most profitable trades are built on thorough analysis made by means of special programs...

Why Is Inflation So High?

You may have noticed that the prices of your favorite products have recently increased quite a lot. The reason is the incredibly high rates of inflation impacting economies of countries all around the world...

How Panic Works In Stock Markets And How To Deal With It

We can recall dozens of examples of panics in the markets when in a few trading days with a loud chuckle whole states went into the mire of market volatility. In addition to recent events

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.