Some aspects of trading (especially patience) can be likened to that of a fisherman. Trading, like fishing requires a patient mind in order to be successful. A fisherman can go to an open sea with endless opportunities of catching fish; however, they are unable to see what fish, or how many fish are under the water which is why they must equip themselves with the right mindset and ‘tools’ giving them the best chance of a catch. The same can be said of a trader. A trader participates in a market with endless opportunities for making money; however similar to the fisherman, a trader is unable to know which trades they must take in order to be profitable unless they equip themselves with the right mindset and tools.
When fishing, a fisherman must first determine what tools give him an ‘edge’ or the best chance of catching fish; he must decide what the best time and location to fish are, along with an appropriate rod and bait. A trader must do the same as a fisherman before they start trading if they are to be profitable. A trader should determine the best time to trade based on their circumstances (i.e. location & market volatility). The trader must then determine what is an appropriate ‘rod’ and ‘bait’ for profitable trading. A traders ‘rod’ and ‘bait’ is the system/strategy they will use to gain an edge in the market.
Possibly the most important aspects of being a good fisherman and trader are patience and discipline. Both are required for a successful outcome; having one and not the other can have a detrimental affect on success; having neither leads down a short road to almost certain failure.
Good fishermen, like good traders have patient minds and know that if they can adhere to their ‘rules’ or plan, they’re putting the odds of success in their favor. It’s not uncommon for a fisher man to sit by the side of a lake or on the ocean for hours a day and not catch anything. However they are usually patient enough to know that like trading, when fishing, you’re not guaranteed a catch (or winning trade) everyday.
Truly great traders fully understand the concept of patience. They genuinely have accepted that without being patient their chances of profitability are not as good. Patient traders will only take trades that meet with their predefined set of criteria (their system/strategy and trading plan). Its not uncommon to see impatient traders constantly over trading or entering trades that do not meet their rules with the mind set of ‘the more trades I take, the more chances I have of making money’. Unfortunately this is rarely the case; being impatient often forces the trader to experience a rollercoaster of emotions having a negative affect on their success.
Success in trading is heavily influenced by the level of discipline a trader can commit to. Once a trader has determined what system he will use, he must develop a trading plan. Following his plan with strong discipline can be one of the most difficult obstacles he faces in his trading career. It’s not uncommon to see struggling traders lacking discipline. Many undisciplined novice traders find themselves drifting from one system/strategy to another when they experience a few losing trades. A good fisherman understands the importance of discipline. They are confident in the way they go about their business and know not everyday will be a positive day; however they are disciplined enough to know that just because today was a ‘slow day’ tomorrow may improve. They don’t change their fishing style or buy new tools because they had a few catch less days on the water. A good trader has the same mindset. A disciplined trader may experience a string of losing trades; however they don’t panic or change their methods, they understand losing trades in forex is the ‘cost of doing business’.
Although the two are completely different; forex and fishing have a lot in common; mainly stemming from patience and discipline. Trading like a fisherman with a patient and disciplined outlook can turn an erratic equity curve into a smooth upwards moving line.
