ForexSpirit

Learning to trade and climbing a mountain have some interesting parallels to offer the astute observer.

To a beginner trader the riches to be gained from trading seem vast indeed. To a climber, standing at the bottom of a mountain looking up at the mountain’s summit, the top of mountain can almost seem within their grasp. This of course is just a trick of the mind that distance can play. Similarly, the vision of vast riches that the beginner trader sees is nothing more than an illusion. From the base of the mountain the climber knows that the top is actually really high up, but it looks within reach. What the climber needs to keep in mind is that perspective can be deceiving, especially for a beginner.

I’m reminded of the classic sketch in the comedy series Father Ted where Father Ted is trying to explain what perspective is to Dougal. Being far away is not the same as being small. Far away. Small.

A similar trick can occur in the mind of a beginner trader whereby they are mesmorised by the lure of fabulous wealth without realising the effort and hardship that is required to obtain it. It looks to be within their grasp almost from the outset. After learning to use their trading platform it seems almost too easy in that trades can be entered and exited at any time. Unfortunately, they have little realisation of the invisible long and winding road that must be followed to become consistently profitable as a trader and so claim that glittering prize that had so caught their eye when they first started on their trading journey.

Back to our climber who has now commenced his attempt to scale the mountain. When actively climbing the climber must keep all their focus on what they are doing. Similarly, on a day to day basis as a trader you’re stuck to the cliff face and can’t see too far ahead. It is hard work and it requires your focus, attention and concentration. You have to use your brain. The climber must deduce the best route to take and then navigate it. The trader must lay out their trading plan and then follow it.

It is important to take a break every so often, to relax, take nourishment and plan ahead the next stage of the journey. On these breaks you can take a moment to catch your breath and spend some time admiring where you now find yourself. You can see a new majestic vista below you. You should appreciate all that you see, as well as all that you have accomplished so far in your journey.

The climber faces many perils along the way. Everything from falling to frostbite can bring the climb to an abrupt end. The trader faces just as many dangers along the way, any one of which can result in financial ruin if the trader has not planned ahead to met them if they should occur. Hope for the best but plan for the worst.

When the climber finally reaches the summit of the mountain that does not signal the end of their climbing endevours. Reaching the top of the mountain they reveal a new mountain, one that is even higher. With new found confidence in their abilities, they will tackle the new, higher mountain.

Learning to trade is a constant, unending endevour. A struggle. The process of trying to become a better trader never ends. If you reach the objectives that you had laid out for yourself at the beginning of your journey, by the time you reach them you will have come up with even more grandoise goals for yourself. You’ll want to become even better. You’ll want to improve yourself in areas that you didn’t even realise you had a problem in before.

Finally, it’s important to never take anything for granted. Just like a climber must respect the mountain and its inherent power, so must a trader respect the market.