I am a certified Judo buff and in this article I am going to combine my two favourite activities which Judo and Trading to show you what is “Judo Trading” all about. For those who do not know what Judo is, allow me to explain a bit about this wonderful martial art. Judo is a Japanese fighting art which idea of self defense is “force is never met with force”. It is what I call a human chess game where participants would try to unbalance an opponent to setup a throw or to pin and finally to submit and opponent. It is the second most popular sport in the world behind football and is ranked as the 3rd most popular sports in the Olympics since 2004.
Now that the introduction are aside, you may ask how trading is akin to Judo.
Judo VS Trading
Know the players
First of all you need to know who the players are in the trading game. In our case the big players are the market makers. Walking into a tournament without giving any respect to anyone is a sure recipe for disaster. Through ones humble thoughts only would one have wisdom to handle whatever the situation which is presented upon us. In the trading world, we have the market makers, hedge funds, business entities and the retail traders. Each of them have different trading style and the big brother is off course the market makers. During a Judo competition, I was taught to sum up your opponent as soon as you step into the mat and plan your strategy there and then. Failing to do so would result in a potential loss. So is trading. That is why my style are based on following the market makers.
Judo is way of life
Judo is the only art which is created for Education. The concept of “Learning” is the single most important thing one should have. The focus should not be about making money as it is a by product of constant learning. Educate yourself constantly and see yourself reap rewards in the non too distant future.
Force is never met with force
Never and I repeat never go against the market maker movement. In simple terms for those who do know how to identify the market makers move. Do not trade against the major trend. We do not have the monetary capacity to fight with the market makers. In Judo, it is normal to fight against big and stronger fellas and the general rule is to follow the flow of the stronger force to throw the opponent. Thus if you want to beat the market maker, then follow the market makers flow. 95% of traders lose their money to the market. Beating them by being the 5%.
If you fall just get up
Winning and losing is part and parcel of life. It is to create a balance. However there is a way to tip the balance into your favour. That is to learn by mistake. Judo involves a lot of throwing and your will, your desire will drive you to learn from your mistakes. I was told to get up fast after being thrown as this will instill a feeling of letting go of the mistake you have done and start all over again. The greatest teacher in life is making “MISTAKEs”and learning from it. Getting up fast also teaches one to not give up easily.
Attacks come from all angles
Judo is not a conceptual art. You get to practice your skills with opponents at full speed and full strength as it is safe. As I mentioned before the market is very alive and they never move the same all the time. Thus if you believe the market is always the same and you can always use the same strategy, same timing to make money, dream on, you are in for a rude shock.
Human Jigsaw Puzzle
In Judo we place emphasis on techniques rather than brute strength. To enhance our skills, we need to plan our game plan which is akin to a game of chess. There is an attack and defense linked to every move. The moves must be well planned and executed. Last minute changes are expected to counter unexpected moves by opponents. In trading it is also the same. Human trade the market and I always say that market movements are thoughts of human. If you manage to figure out the moves….Checkmate and make money.
Lastly being humble. My very first class in Judo is about being humble. Focus on improving your trading skills and not inflating your ego. Ego destroys accounts. Imagine not losing a single trade for months. You might have the feeling of being invincible and then feels that you needs to speed up his making process by trading higher lot sizes. Then wham…the loss came and along wiped out all the months of hard work.
There are others who have not been trading for a while come back and expects the market to react they way they want. The market is a living thing which constantly evolves. No matter how long you have spend trading, once you come back in, take your time to feel the market.
If you need to know more about this art and yourself, head to the nearest Judo centre and ask try it yourself. Do JUDO and you will understand yourself and trading better.