Traders should trade like soldiers

Traders should trade like soldiers

Traders need to learn how soldiers think and act to be successful in trading. The best soldiers are not the best shooters, but the ones who survive the longest until the war ends.
In many ways, trading the financial markets is like fighting on a battlefield. And in battles, the element of risk, uncertainty, and danger are all present.
And sometimes traders need to learn how soldiers think and act to be successful in trading. The best soldiers are not the best shooters, but the ones who survive the longest until the war ends.
In many ways, trading the financial markets is like fighting on a battlefield. And in battles, the element of risk, uncertainty, and danger are all present.
And sometimes traders need to learn how soldiers think and act to be successful in trading. The best soldiers are not the best shooters, but the ones who survive the longest until the war ends.

Trade like soldiers: How a soldier thinks

Dr. Brett Steenbarger, one of the best trading psychologists, suggested drawing from the experiences of Colonel John R. Boyd to understand how a soldier thinks in battle.
As a US Air Force soldier, Colonel Boyd was famous for his ability to defeat pilots chasing him within 40 seconds. And he is also famous for his formula about the human decision-making process called OODA, which stands for Observe – observe; Orient – ​​direction; Decide – decide; and Act – action.
Simply put, OODA summarizes a process that a normal person will go through while facing an event. This is a series of actions that take place very quickly: first people will observe to collect data through their senses. Next, people will orient themselves by processing data to get an opinion about the current situation. Finally, based on the information collected and the conclusions drawn, people act.

Trade like soldiers: Apply to trading

So how to apply Boyd’s theory to trading?
First, we must understand that we must know how to be aware of confusion and uncertainty, which are even more important than greed and fear. (fear).
Try to remember the last time you were surprised by the market. When the market went against your orders, I bet you thought “what the hell is going on?”
Until you have oriented yourself towards what is happening and finally decided what to do, the market has done its job, and what remains is only regret.
“Defense is the core of every war.” If so, a good trader must be a trader who knows how to defend well, knows how to protect himself from guns, and knows what to do to avoid the market bombs thrown in his face.
And there is no weapon that wins everything, just as there is no trading system that can beat the market forever. The soldier who wins in battle is the soldier who returns alive. The trader who wins in the market is the trader who survives the longest.
Trade like soldiers: Ask What If questions
Ask lots of What If questions to map out market scenarios. Just like a soldier draws up a battle plan. What to do if the opponent suddenly attacks, what to do if the market flash crashes. It’s the same.

Trade like soldiers: Know who knows you

Master yourself, master the enemy. On the battlefield, those who understand themselves as well as their opponents will definitely win.
Traders who know who they are, what they are suitable for, and understand market behavior have a high chance of surviving in the long term, even making regular profits. Understanding what you want, traders will quickly choose a suitable system for themselves. Understanding the story the market is telling will help avoid unnecessary losses.
Trade like soldiers: Act in groups
Trading is an individual job, but we also need a community to operate, exchange ideas, and share together. Learning + Sharing = Success

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