It just occurred to me that trading and scuba

diving have a lot in common. I was thinking

about how traders must follow their plan while

in the midst of a trade and realized that’s

what I do when diving, especially

deep diving which is my favorite sport.

When I’m on a dive boat, planning to get in the

water, I gather as much information as I can

about the ocean beneath me. I refer to marine

charts, dive guides and anyone in my group who’s

been to this area before.

Then I make a dive plan, before I jump in the water.

When I’m trading, I gather information, use my

charts and consult my system rules then make a

trading plan; before I put the trade on.

When I’m at depth, I have to make adjustments for

the conditions – which way the current is running,

how much visibility we’ve got, if there are any other

divers in the water, how my ears feel, what my dive

buddy is doing, the creatures we’re sharing the water

with and the topography I find.

I consult my instruments, review my plan and then

relax and have some fun!

When I’m in a trade, I monitor the situation, looking

to see what’s as I expected and what’s different. Is

market trend continuing or has it reversed? I take

a look at my plan and follow my system’s signals (which

is also a lot of fun for me).

When you’re a couple hundred feet under the ocean,

you’ve got to trust your gauges. You know, based on

your training, that the pressure impedes your decision

making ability so you train yourself to follow your dive

plan even while you respond to unexpected events.

Trading’s the same; you’ve got to trust your system and

the signals it gives you. You recognize the emotions of

fear and greed will cloud your judgment and so you must

follow your map while assessing the territory and how

it looks compared to what your advance planning prepared

you for.

One of the things I like most about deep diving is the

encounters with big fish,
rays and whales. These guys

weigh hundreds, even thousands of pounds and can kill

you with a flip of their tail.  Make the wrong move and

you’re dead meat. Not because they’re out to get you but

because you didn’t have enough respect for the big fish.

Individuals trading their own accounts are never going to

be the big fish in the markets. Consequently, we watch

and emulate certain behaviors the hedge fund guys and

Mutual Fund managers do and guard ourselves from any

sudden moves they make (and yes, sometimes they are out

to “get” you or at least your stops).

The other cool thing is this is often blue water diving

meaning there’s no reef or ocean bottom to see. It’s easy

to get disoriented and if you don’t check and believe your

instruments and dive the plan, you can make the wrong

decision under pressure and kill yourself.

Trading isn’t usually a life-or-death situation but you

do venture into unique situations where you’ve got to

have confidence in your system and signals. Making a wrong

decision under pressure in the markets can cost you your

trading account.

At the end of the dive, when I climb back on board the boat,

I’m tired but excited. It’s a great time to recount the

adventure, jotting down key elements in my dive log so when

I encounter the same type of dive or return to this spot,

I’ll be even better prepared.

For those same reasons, I like to keep a trading journal.

Keeping a log of what happened, what I did and why helps me

constantly improve my trading and document my growth.

So, if you’re interested in deep diving I suggest you seek

some professional training and realize you’ll need to set

aside some significant amount of time for learning and

building your experience– don’t expect to start off diving

with the

off the Galapagos on your first dive

trip. But when you do get there, you’ll know you’ve gone

where few have gone before and you’re entitled to feel the

thrill of deep diving with the big fish.

We can say the same about our trading. Find a program you

can have faith in, follow your instructor’s guidance and

build your experience. Give yourself time to grow and stay

in the game long enough to experience the thrill of a big

trading win.

Helping you retire on time,

ETF Trend Trading system

Trading and Scuba Diving Have a Lot in Common


Leave A Comment

Recommended Posts