From the court transactions to financial ones
Federer’s tips for the financial markets
Occasionally it’s a good idea to step back from your environment and look at different areas that might have parallel lessons. These similarities help to make people understanding where their can be improved.
So, for today’s article, we’re going to borrow some lessons from the great tennis legend, Roger Federer. Federer has overcome many challenging mental obstacles whilst mastering the skill of tennis.
The obstacles that Federer overcame were not so different from the ones that traders deal with.
It is okay to be unmotivated
Early on his career, Federer mentioned that there were days he couldn’t get himself up and moving towards his goals. He would beat himself up for it. Also, he accepted that every day could not be a burst of energy and motivation.
This happens in trading too. Developing your trading skills will take time – the learning curve is long. It is okay to feel defeated after a loss or less energetic after a sleepless night. Ups and downs are a natural process of learning, improving, and mastering any subject or skill.
A good way to combat your hopeless despair is to refer to your trading journal from a time period of success. If you’re in a rut, it’s helpful to recall a period when you were successful in order to remind yourself that there have been successes and that it’s more than possible to succeed again.
It takes a while to figure it out
Related to the first tip on this list, if you have an intention to become great at anything, be prepared to commit for the long run.
If you’re getting into trading because you want to make a pile of money, be ready to be disappointed early on. Trading is a skill that takes months and years to cultivate and perfect. Early on in your career, you may feel confused or lost. This is normal.
As you progress, your goals and desires will become more clear to you. As long as there is a small spark constantly inside of you, pushing you in the direction of your goals, you can succeed.
Make a decision about what you want
Why are you trading? what exactly do you want to gain from trading? Come up with clear answers for these questions and incorporate the answers into your trading plan.
With a clear and defined goal, it will be easier to stick to the plan and stay on the path towards your ultimate trading life.
Fire vs. Ice
Federer refers to the duality of success and failure as fire vs ice. In moments where everything is going well and he is succeeding, he likens to the feeling to fire. He is alive with energy, heat, and excitement. It pushes him towards his goals. On the days when he does not feel that way, he feels the opposite – frozen, still ice with no energy to move.
As traders, we experience the same. The feeling of winning trades and continually succeeding in the market feels like a fireball of energy pushing us to work harder to succeed.
But when a bad trade happens, it can be paralyzing. All of our momentum can freeze up and stop. The key is to find more fire in those moments and thaw out the icy buildup.
It’s ok to be nervous but trust yourself
In the case of trading, if you trust yourself, you’ll ultimately trust your trading plan. We’ve written at length on the importance of your trading plan, so if you need to go back and review, please do.
If you have a solid understanding of your plan in the market and you are disciplined to execute it faithfully, then trust the process. You may miss a trade here and there but over the long run, sticking to your trading plan is what is important. If you begin to doubt yourself, you will stumble and quickly find yourself lost.
Even a mentor, Federer, admits to being nervous at times. His method for overcoming these negative emotions is to let go and trust in his talent and preparation. The same should apply to you if you find yourself agonizing or anxiously fearing potential market movements.
Always try to find the positive
When we watch Federer on the court, we’re only seeing the tip of all of the incredibly grueling work he had put in prior to that moment on television. We don’t see the endless hours of balls hit into the net or practice serves to miss the box.
But as Federer explains, we want to be perfect all of the time. yet, it’s impossible. If we accept a few failures, then we can learn from them too.
As you trade, you too will fail. It is an undeniable part of trading and the sooner you learn to accept it and learn from your mistakes the better. When you accept failure as part of the journey to success, it becomes easier to extract positive lessons from the missteps.
Try your best
Federer stresses to his audience to always try our best. If we succeed while trying our best, we will then know we’ve earned something special.
If you do give 100%, there is never any reason to doubt yourself. There is much pleasure in knowing that you have tried your best. If you fail while doing so, go back to your trading plan and see what needs to be changed or tweaked. If you need to learn more, do so. Whatever it takes, pick yourself up and give it the best effort you can.