Forex trading and market trader mentality in general has often been compared to war – and especially the movers and shakers in that industry have recommended that traders study Sun Tzu’s Art of War. However a much overlooked work of perhaps greater usefulness in application to the real world is The Hagakure or The Book of Samurai by Yamamoto Tsunetomo. So today we’re presenting you with our top forex tips – in a samurai inspired style!
1) Single-mindedness is all powerful.
This quote is equally applicable to trading as it is to war and battle. It’s very important that while you’re ‘working’ on your trades that you don’t distracted by anything else – with the fast moving currency market even a moments distraction could make the difference between a huge profit and a huge loss.
2) Money is a thing that will always be there when asked for – a good man is not so easy to find.
This might seem counter intuitive in the context of forex but it actually stands very true. Money is not the be all and end all of life – many traders get caught up in the rush of trading, it can be addictive like a drug, but always remember why you’re working to become rich – it’s so you can enjoy life with your friends and support your family and keep your loved ones safe. If you become too obsessed with trading you might lose more than just your money.
3) Seven times down eight times up.
Whilst its always important to realise when it’s time to cut your losses and get out of a bad trade it’s also important that much like a battle, every time you are knocked down life is merely giving you a chance to stand back up – so don’t give up, rethink your strategy and make a fresh start.
4) A man who has never erred is dangerous.
This can be very true in the forex world; if you make a run of successful trades what is sometimes called the god-trader-effect can kick in, which means you start to make foolish and irrational trades based on the fact that you’ve done so well so far. Always stick to your strategy – even if it looks like you’re on ‘a winning streak’.
5) It is spiritless to think that you can’t attain that which you have seen and heard the masters attain. The masters are men. You are also a man.
This might seem a little out of context but again its true – so called master traders are just people like you and me, they’re not magical beings, they just use good strategy and make sensible decisions based on solid evidence. A lot of people will try to tell you there is some ethereal component to trader’s hunches but in reality they’re mostly just based on solid market experience. Learn from these people if you get a chance, the best source of applicable real-world information is a successful trader.
6) It is not good to settle into a set of opinions.
This is great advice when it comes to life in general as having fixed opinions can lead to an inability to adapt to new situations. This is even more true in the world of forex where what worked well 12 or even 6 months ago may not work in the future – so try not to let your strategies become concrete – if they’re out of date or no longer working, then it’s time to rethink your approach.
There are a whole lot of other things to take into account when your trading and we could wax-lyrical on the wisdom of the samurais for hours on end – but we think these are some great points to help take you forward in your forex game. There are also a couple of other brief points which although outside of the samurai remit are non-the-less extremely relevant to new forex traders and forex trading.
a) Do your research – if you’re new to the world of trading watch YouTube videos, check out forums and read forex websites.
b) Open a Demo Account – this is the best way to test out your strategy and gain experience before you start putting your initial cash deposit on the line.
c) Master your trading platform – most traders use Metatrader 4 or 5 or similar programs, whatever one you use make sure you get to know it inside-out… after-all, if you were a samurai you’d know every single facet of your swords blade!
d) Never trade with money you can’t afford to lose – simple as that – we don’t need to say anymore do we?
So, that’s our not quite exhaustive list of tips for samurai forex traders, we feel it covers all the basics you’ll want to take into account when you’re starting your career as a trader. Now go forth and trade – the exciting world of forex is waiting for you, as the samurais say ‘Yosh’!
I am a copywriter and poet with a bachelor’s degree in English Language and Creative Writing. I have worked in various marketing & creative roles since 2001. My aim is to publish at least one novel before I die – so far I have had 2 poems published internationally in print as well as some online. In my professional capacity I currently work for an advertising agency in London.
Image courtesy of Stuart Miles / FreeDigitalPhotos.net
This is a great piece on Forex – I really enjoyed the Samurai angle and has some brilliant Forex Tips!
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