Hi everyone, I am Michael Ballack and I am thrilled to be in collaboration with the award-winning HotForex! In professional football, winning is not just about having talent and skills.
It is also a result of determination, training and passion. This is similar to what the financial markets command. And in that sense, football and trading have many things in common!
So let me give you the 13 Golden Rules on how to be the Michael Ballack of trading.
Footballers, just like traders, have one target: to win! What will lead you there? As many goals as possible!
So you need to stay focused, zone everything out and concentrate on nothing but what you are doing, that way you can make every strike count. To draw the parallel with trading, you need to stay focused because you have to click the right button at the right time!
You need to keep training in order to be in shape and keep up with the huge requirements that both football and trading require. But what constant training helps you with, is also to learn automatisms. This is important for the times when you are under big pressure because you will be more confident and you will know how to react under stress because you have trained for it!
That’s why you need to familiarise yourself with the processes of trading in a risk-free environment. Beginners should start trading with a demo account before opening a live account, and even later on, experienced traders should do regular training updates. Automatisms will help you stay fit when you are under stress.
A football team always plays with a pre-set formation and each player knows his position and plays accordingly! Now, in trading, YOU decide about the formation or better say the strategy and YOU control your positions. So you need to make a plan with specific directions, criteria, risk limits, which brings me to my next rule, where you have to stick to your strategy!
Indeed. Having the best strategy possible is pointless if you don’t have the discipline to stick to it, and being too emotional on the pitch can cost you a game… And especially in trading, you need to be even more disciplined, because it can cost you a lot of money! Discipline is essential and so is controlling your emotions. Sometimes you need to make tough decisions in order to succeed in the long term: you have to respect your risk limits, cut your losses, run your winners, and in other words, always be disciplined!
You can’t play well if you don’t sleep enough. Likewise, you can’t Think carefully without a good rest at night. Even if you can handle it in the short term, in the long-term it is not sustainable.
Otherwise you will start doing mistakes, press the wrong button, fat-finger important numbers… That’s why you really need to conserve your energy and be fit for trading.
A match lasts 90 minutes, and there are plenty of opportunities to score goals.
Likewise, don't make hasty decisions in markets; For new traders, being in a rush or taking too much risk is a great way to lose money. It can be annoying if you miss a trade, but this is still a lot better than having a losing trade.
Don’t risk too much in a single trade. If you risk more and lose, you are likely to become emotional and start making bad trades trying to recover the loss.
So don't trade too fast, and don’t risk too much… Remember that There is always the next trade!
Unskilled or reckless tackles don’t help: they can end up in fouls, getting carded and giving away a free kick, often in a threatening position. To score you need to be aggressive at the right time and you need to know what you’re doing.
Leverage is the same: you can highly benefit from it, but it’s very risky if you’re not careful.
Higher rates of leverage aren’t your enemy, but you have to know how to use them properly.