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Six Things Traders Can Learn from Fantasy Football
11/06/2014 6:00 am EST
Top-rated player Justin Boone recently offered some guidelines that he follows for the 'game' of fantasy football and Adam Button, of ForexLive.com, highlights how these six tips can also apply directly to trading as well.
What it takes to win in NFL fantasy football isn't very different from trading.
The only thing some people love more than NFL football is playing fantasy football. It's turned into an industry and when money and decision-making are involved, a certain set of characteristics wins out.
"Literally, it is the last thing I'm thinking about before going to bed and the first thing I'm thinking about in the morning. You might not want to put that in there, because I'm not sure if my girlfriend would love to hear that," he says. "Not that I didn't put a ton of work in years past, but this year, it's nice to see that I'm first because I have put an insane amount of time into it. I'm not sleeping as much because of it."
That's a quote from top-rated fantasy football guru Justin Boone. It's more of a side project for him than a job but it shows the kind of dedication it takes to win in anything.
Here are more tips from Boone that also apply to trading. We'll translate it into trading advice:
As for general advice, Boone gives some of his basics. (1) Definitely use a site or service that sends out alerts about players and he shamelessly plugs the Score's app as being good at this. (2) You've got to be active on the waiver wire, and (3) remember to really look at who you are playing , (4) so if you have room on your bench and can pick up someone just to play keep away from them, do it.
(5) "I think the biggest mistake is that people overreact to what happened last week," says Boone. "Like this week, Ben Roethlisberger is going to be ranked higher because he had an incredible, record setting game last week. But he's playing Baltimore, it's a division game, in a rivalry that's generally been low-scoring."
He also advises to (6) be aware of personal soft spots, such as favorite teams or players.
Here's how these six tips apply to trading:
- Keep an eye on the news but also know the important levels.
- Stay flexible. You might like to trade only EUR/USD but don't be afraid to pick up a few pips here or there in something else.
- "Look at who you are playing" is the same as knowing what's coming up on the calendar. If you had a yen trade on last week and didn't know about the BOJ, you could have been in for a big surprise. The market is like a football game that never ends.
- Keep you powder dry. Always have some money ready to take advantage of an unforeseen opportunity. That means not overstressing your account (or nerves) by holding uncomfortably large positions.
- This one speaks for itself and is especially important after the drama in markets in October. Have a plan and stick to it, your next trade should have nothing to do with the last one.
- Keep an eye out for biases, especially the ones related to your home country and politics, which don't often matter in day-to-day trading.
By Adam Button, Editor, ForexLive.com
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