You can learn a lot on trading by watching Kung Fu. Sounds crazy? Let me explain by the following video.
The first scene is where the market offers you an opportunity for a duel. Your opponent seems strong and fierce, but it’s not just about muscles and brute force.
– Bruce Lee shows respect for his opponent in the first scene. This is very important. Never understimate the market and always be nimble.
– When his opponent tries to scare him by breaking a wooden board, Bruce Lee does not show fear. You should never fear the market. Always have a clear mind but be watchful at all times. The market will test you. It will find your weak spots.
– It is okay to test the waters with small positions if you are not sure. As Bruce Lee shows by striking the first two blows, he is just testing his opponent’s speed. Checking to see if the water is safe to jump into.
– When Bruce Lee does a backflip kick, he shows his flexibility. The market might sneak up on you with a move you did not expect. It is your job to be prepared for anything and move as flexible as you can.
– Sometimes the market will go bezerk on you, trying to grab you by the balls. Again, you have to play tight defense at all times so you will not get hurt.
– Bruce Lee shows his amazing talent by performing a backturn kick onto his opponent. This is a highly effective and powerful strategy. Once you have developed a system that works for you, don’t try to change it for the sake of entertainment. It if works, it works! And that is great!
– From time to time you will make a great trade. Like when Bruce Lee kicks his opponent into the crowd. Don’t let this get into your head by thinking you own the market! Always stay nimble and be ready to strike again.
– You may think a fight is over. You may turn your back on a position thinking you have won. If you are up nice on a position and trade without a stop, you can still get hurt. Always play with stops. The market may sneak up from behind and pull a big gap down on you! Don’t let this happen. Always stay watchful and never trade without stops.
– Bruce Lee decides to end the fight finally. Don’t overstay your welcome in a trade. If you are up nicely and can take profits do so. We are not investors. We are traders. Finish the fight now and then and take profits. If you never finish a fight you will never take profits. If you never take profits you will never make money.