Given the hype last week leading up to Sunday’s big game, Super Bowl XLIV, got me thinking of a great analogy. As many of my clients know I’m a relationship guy, using comparing and contrasting techniques to value price of all the markets I trade. During Sunday’s game I began to compare scoring in football, to a winning trade in trading. So often when we exit a profitable trade we allow certain emotions to make us feel like it’s our money; put it in the bank and it will be there forever. While technically it is, in this business it must be used as more “bullets” in your gun. What I mean by that is when the Colts score a touchdown they don’t shut down and expect their defense to pitch a shutout the rest of the game. They try to pile on the points sticking to the game plan, with the expectation that their opponent is going to score. So the analogy goes like this; when a football team scores, it is like taking a profit on a winning trade. However, when their opponent comes back and scores it’s like taking a loss on a trade. No great team lays down after a score, just like no great trader becomes too satisfied after a winner, or even a few winners. Both stick to their strategies, their game plan, measure their risk and TAKE ACTION.

No football team’s defense will shut down an opponent forever. Allowing points is part of the game, just like losing trades are a part of trading. Professionals don’t stop trading during the game just because they’re up money. Nor, do they lay down when they have taken a couple of losers within their game plan. Remember, a perfect trading record doesn’t exist just like a perfect defense doesn’t. Expect to lose sometimes; it’s part of the game. Of course it helps if Peyton Manning is your quarterback.

For more from Anthony, visit AntTrading, Inc.