Why Chess Can Make you a Better Forex Trader

 
 
 

Here’s a genuine proposal: playing chess can help you emerge from your Forex trading courses as an especially gifted trader. As you learn to play chess better, the likelihood is that there’ll be some “mental crossover.” You’ll learn Forex trading faster, too. Here’s why.


Chess helps you manage uncertainty

No matter how sophisticated your Forex trading strategies might be, no system can eradicate the unknown. But this is exactly what chess players face from the moment the game opens. Knowing the rules of the game is just a start. As with Forex trading, players are aware that no matter how perfectly they plan their next move, an unforeseen move can scupper the intended result. No chess aficionado can control an opponent’s next move, and, like a wise Forex trader, the player has to cultivate the art of handling losses without losing focus on the overall game. Being open to uncertainty at all times while executing reasoned decisions is an art that’s directly relevant to Forex.

Chess helps you focus on the war, not just the battle

Chess players aren’t impulsive. Chess players are concentrating relentlessly on the overall game so that what looks like a snap decision has a long trajectory of thought already behind it. Similarly, in Forex, you have to make a series of decisions for each trade, and that means focusing on the entire trading process, not just the immediate “move.” Strategy games such as chess help you extend the reach of your focus, enabling you to weigh up how your “opponent” (the market) is playing and make better decisions.


The Chess/Forex triad: critical, analytic and open-minded


Chess requires an analytic mind that’s continually able to reassess options in the light of each step, because it understands that each step changes the field and creates new knowledge. Successful Forex traders who sustain the chess triad are intelligently self-critical, analytically minded and open to a range of possibilities about each decision. And, like chess players, they think ahead.