Why Forex Trading is Like American Baseball

I was at my niece’s baseball game this past summer and it hit me why forex trading is like American baseball. This may sound like a strange analogy, but a trading lesson can be learned from watching a baseball game. Let me explain.

My niece plays shortstop, which for those who are not familiar with baseball, is an infielder. One role of an infielder, which plays behind and to the side of a pitcher, is to prevent groundballs from going into the outfield, field the ball and throw out the batter or a runner at one of the bases.

Well. I was watching the game when a hard ground ball was hit toward my niece.. She took a few steps in, fielded it cleanly, and threw out the batter running to first base. This is when the light went off in my head that baseball is like trading.

I recalled when I was her age (I also played shortstop) and was told “Play the ball and don’t let the ball play you.” This means charging a ground ball and scooping it up rather than waiting for the ball to come to you and risk it taking a bad bounce.

How is this like trading?

By charging a ground ball, you take control by not waiting for the ball to come and risk a bad hop. In trading, if you sit back and react to price action, your trading decisions may be based on whether a currency feels bid or offered at that time, trying to pick a bottom or top, and as such, risk bad bounces if you time your entry wrong or the market moves farther than you anticipate.

On the other hand, if you attack your forex trading (i.e. charge the ball) and trade with a plan, then you are playing the market and not letting the market play you. In this way, you have a better chance of taking advantage of price action rather than price action taking advantage of you.

How many times have you passed on a trade because a currency looked offered only to look at a chart 15 minutes later at what would have been an ideal entry-level? All this means is to trade with a plan so you are not reacting but are in control of your trading decision

To sum up, forex trading is like baseball. Trading with a plan is like charging a ground ball and taking control. Sitting back and waiting for price action to make trading decisions is like waiting for a ground ball and risking a bad bounce. We have all experienced the bad bounce (e.g. Ill-timed entry based on emotion)..
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