Important Information

You are visiting the international Vantage Markets website, distinct from the website operated by Vantage Global Prime LLP
( www.vantagemarkets.co.uk ) which is regulated by the Financial Conduct Authority ("FCA").

This website is managed by Vantage Markets' international entities, and it's important to emphasise that they are not subject to regulation by the FCA in the UK. Therefore, you must understand that you will not have the FCA’s protection when investing through this website – for example:

  • You will not be guaranteed Negative Balance Protection
  • You will not be protected by FCA’s leverage restrictions
  • You will not have the right to settle disputes via the Financial Ombudsman Service (FOS)
  • You will not be protected by Financial Services Compensation Scheme (FSCS)
  • Any monies deposited will not be afforded the protection required under the FCA Client Assets Sourcebook. The level of protection for your funds will be determined by the regulations of the relevant local regulator.

If you would like to proceed and visit this website, you acknowledge and confirm the following:

  • 1.The website is owned by Vantage Markets' international entities and not by Vantage Global Prime LLP, which is regulated by the FCA.
  • 2.Vantage Global Limited, or any of the Vantage Markets international entities, are neither based in the UK nor licensed by the FCA.
  • 3.You are accessing the website at your own initiative and have not been solicited by Vantage Global Limited in any way.
  • 4.Investing through this website does not grant you the protections provided by the FCA.
  • 5.Should you choose to invest through this website or with any of the international Vantage Markets entities, you will be subject to the rules and regulations of the relevant international regulatory authorities, not the FCA.

Vantage wants to make it clear that we are duly licensed and authorised to offer the services and financial derivative products listed on our website. Individuals accessing this website and registering a trading account do so entirely of their own volition and without prior solicitation.

By confirming your decision to proceed with entering the website, you hereby affirm that this decision was solely initiated by you, and no solicitation has been made by any Vantage entity.

I confirm my intention to proceed and enter this website Please direct me to the website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom

By providing your email and proceeding to create an account on this website, you acknowledge that you will be opening an account with Vantage Global Limited, regulated by the Vanuatu Financial Services Commission (VFSC), and not the UK Financial Conduct Authority (FCA).

    Please tick all to proceed

  • Please tick the checkbox to proceed
  • Please tick the checkbox to proceed
Proceed Please direct me to website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom.

×

Rediscover Your Trading Potential

START NOW >
Watch Reborn a Trader

za

View More
SEARCH
  • All
    Trading
    Platforms
    Academy
    Analysis
    Promotions
    About
  • Search
Keywords
  • facebook
  • instagram
  • twitter
  • linkedin
  • youtube
6 Things Football Can Teach Traders

TABLE OF CONTENTS

6 Things Football Can Teach Traders

6 Things Football Can Teach Traders

Vantage Updated Updated Thu, 2022 November 17 07:18

Football captivates fans worldwide with its dynamic play and strategic depth, much like the world of trading, where precision and strategy play pivotal roles. Both football players and traders require a keen sense of timing, a strong strategic framework, and the ability to make decisive moves under pressure. Here are six insights from football that can also apply to trading.

If we take a closer look, there are in fact many similarities between a pro football player and a seasoned trader. Here are six things the well-loved sport can teach traders about.

Key Points

  • Just like football, trading is unpredictable and requires quick adaptation to rapid changes, with both fields valuing the ability to pivot strategies in response to unexpected events.
  • In trading, as in football, not all outcomes have to be wins or losses; a draw or breaking even can still be strategically valuable, allowing for future opportunities and growth.
  • Recognising when to accept a loss is crucial in both football and trading, as it helps to prevent further damage and protect the overall position, whether it’s a team’s standing or a trader’s capital.

1. Things Can Change By The Minute

The high intensity and unpredictability of a football game translates perfectly to the chaotic ebb and flows of the financial markets. Developing a firm understanding of this turbulency allows a trader to adapt quickly and rationally to any situation. 

“Football’s beauty is its unpredictability”, as Arsene Wenger said, current FIFA’s Chief of Global Football Development. 

A team might be down 1-0 at one point in a game, but the deficit could be overcome with two quick-fire goals. In the case of trading, your short-term positions could also change direction depending on the economic events that take place, as well as the shift in supply and demand.  

A good example to remember would be England vs Brazil in the 2002 FIFA World Cup quarter finals. England’s Michael Owen scored a goal at 23rd minute and many fans were, at that point, doubtful about the all-powerful Brazil. However, Brazil tied the game just before half time, and subsequently at 50th minute, Ronaldinho surprised the crowd with a classic “fluke” freekick that eventually knocked England out of the tournament. 

2. A Draw Can Be Seen As A Win

When it comes to football and financial trading, many focus only on the wins, and even the losses.  However, there are occasions when the match ends in a draw, or a trade breaks even. Sometimes a draw match would still qualify the team for the next round, and likewise, a break-even trade could be a right decision to pull out from a bad loss. 

In a break-even trade, although we do not make a profit, there is no loss incurred. At little cost, there are takeaways and invaluable insights we could have learned. Equipped with growing experience, you always are able to open a new position. 

3. Knowing When To Take A Loss

Everybody wants to win, and no one wants to lose. However, knowing when to take a loss is also an essential part of setting yourself up for trading experience. Imagine a team losing with a score of 3-0, rather than committing more on the offensive and leaving the defence exposed, the losing team can attempt to limit the damage by shoring up their defence. This would prevent the game from being a blow out with the potential for scores to hit 7-0. 

In trading, knowing when to strengthen defences and manage risk would play a tremendous role in protecting one’s capital. When a trader does not know when to take a loss, over trading and over leveraging could result in the quick loss of capital. 

4. Small Wins Can Add Up

With strong defence, scoring just one goal could be enough to clinch the win. Likewise, small wins can accumulate over time to make you a profitable trader with a higher win-rate instead of  constantly aiming for big, unrealistic gains which often come with high risks of huge losses. 

Remember that consistency is what transforms average to excellence. Hence, there is a difference between good trading and one good trade. 

5. You Don’t Always Play The Same Opponent

The number of CFD instruments in the financial markets is comparable to the many football teams around. The odds of winning can be improved through gameplay preparation, learning about their opponent, executing different tactics, formations etc. 

For the financial markets, traders can apply the same idea when looking at specific instruments, be it forex, commodities, stocks, indices or other products, enlisting different research methods and strategies to gain an edge over the markets. 

6. The Team Matters

When a goal is scored or when a game is won, it is not just credited to one man’s work, but rather the collective efforts from your teammates, the coaches, and other external factors such as the opposing teams’ gameplay and much more. 

In the same vein, when a trade hits your take profit level, it is not solely down to the trader’s efforts, but also the market conditions, spreads, and trade execution speed just to name a few. 

Vantage’s client-centric attitude has allowed us to provide traders with the best conditions for trading with tight spreads and $0 deposit fees. Vantage is committed to be a reliable teammate in your trading journey, sign up with a demo account here to begin your practice. Alternatively, if you’re ready to take a shot, you can also open a live account here.

  • vantage academy open account

    Open Trading Account

    Discover the endless trading possibilities with our cutting-edge platform, designed to empower both beginners and seasoned traders alike.

  • vantage academy app

    Download Vantage App

    Trade on the go with the Vantage All-In-One Trading App, where smooth execution and market access come together in the palm of your hand.

  • vantage academy start trading

    Start Trading

    Are you an existing user? Login to your account to start trading 1,000+ products including forex, indices, gold, shares and more.