Chess is a fascinating game and in many ways is similar to Forex trading. The three key ways, I have found playing chess useful in terms of, achieving currency trading success are outlined below.

Flexible Trading Strategy

Many traders like to think of trading in terms of there is one system or strategy to beat the market but this is not so. Every trade set up is different and a flexible trading strategy is better than a fixed one in my view. This is because just like in Chess, trading currencies is a battle between you and other humans and they will always - move to wrong foot your set trading strategy.

A game of chess is a game, where you react to what your opponent does and the markets are the same.

Sometimes, they are trending and a trend following strategy is best sometimes, there moving sideways and a swing trading strategy is best and at other times they offer emotional price spikes, where a contrary trading strategy is the right one to use. The key in Forex trading is to watch what you see and react and it's the same in a game of chess.

When you are playing a game of chess consider this:

After three moves I.E three moves by each player (each “move” in chess meaning a move by White and Black) which gives you, over nine million possible positions different on the board. The same is true in Forex in terms of trade set ups . There are a huge number of trade set ups which are all slightly different. The best way to execute your trading signals is to look, at the set up before you trade and decide what you should do in terms of the trading approach you should take.

If you want to win at a game of chess or with your Forex trading strategy, the key is to look at what is before you and think about the best move to take. Of course today, traders don't want to think they want set trading systems which will allow them to avoid responsibility of acting on their own. These traders, want to make big profits and not experience any losses or drawdown but this is not the reality of trading currency markets.

There are some trading systems which are set which can win long term but you can never avoid losses in the short term. The best traders in the world probably only win 30 – 50% of the time but this doesn't matter, if you make profits over the long term. Most traders are obsessed with, winning the majority of their trades and hate to lose but the reality is - to win long term at Forex trading you have to lose.

Pawns are there to be Taken!

The Pawn is the lowest of the Chess pieces and its sacrificed, to protect the king or to allow the queen and other higher value peices to attack so why is this relevant to currency trading?

The answer is - the Pawn in chess is the equivalent of small losses in Forex trading and can be seen in terms of money management.

Chess players don't care about losing Pawns because there sacrificed to achieve an end which is either to protect the king or allow a queen led attack. The point to keep in mind is you have to lose pieces in Chess to win and its the same in currency trading, you have to take small losses to win the game longer term. You can't win a game of Chess without losing the majority of your pieces (if you are playing an experienced player) and it's the same in trading currencies. To win at currency trading, you will probably lose the majority of your trading signals but the key point to keep in mind is this doesn't matter:

Your aim in Chess is to take the king and the aim in trading currency pairs is to make money long term and in both the game of chess and Forex trading, this means taking losses. In Forex trading, traders need to keep in mind that to win long term you have to take losses short term.

Chess has One Objective Only – 6 Chess Quotes for FX Trading Success!

To take the king and with your trading account the only objective is  to make money long term. Sure you can't win on every trading signal but that doesn't matter if you make money on your account.

Let's look at some quotes on Chess and relate them to achieving Forex trading success:

“When a chess player looks at the board, he does not see a static mosaic, a 'still life', but a magnetic field of forces, charged with energy - as Faraday saw the stresses surrounding magnets and currents as curves in space; or as Van Gogh saw vortices in the skies of Provence.” (Arthur Koestler)

Trading currencies is the same- when I look at any currency pair, I am seeing it as a unique situation which I have to react to.

"The Older I grow, the more I value Pawns” (Keres)

The above is also true in corrency trading – I take losses and they don't worry me, just as I let my pawns be taken in Chess. I have my eyes on the longer term and love small losses, as they will see me win long term. By allowing Pawns to be taken in Chess or taking small losses in Forex trading, I know this is simply part of what I have to do to win the game.

"I consider chess an art, and accept all those responsibilities which art places upon its devotees." (Alexander Alekhine )

If you play Chess or want to become a successful Forex trader, there is no hiding place – you have to accept your on your own. Of course most currency traders can't accept this follow others and lose – don't make the same mistake.

“ The chessboard is the world, the pieces are the phenomena of the universe, the rules of the game are what we call the laws of nature, and the player on the other side is hidden from us.” (Thomas Huxley)

The player in Forex trading is also hidden from you – you don't know what he will do so your strategy must be flexible and also have great money management. Always keep in mind, you can't beat the market but you can win, if you are prepared with the right Forex trading training and strategy.

“Many have become chess masters - no one has become the master of chess.” (Siegbert Tarrasch)

You will read all the time, about the Forex trading system which cannot lose and secret of currency trading price movement but there not true. There is no easy way to win at currency trading but you can win long term if you accept losses and simply focus on profits – perfection is not possible but you can make money.

“The battle for the ultimate truth will never be won. And that's why chess is so fascinating.” - (Hans Kmoch)

The fact is there is no currency strategy, will ever beat the market - but it doesn't matter. Keep in mind – you can still win and make money and that's all that matters! Thank you for reading this article and we hope the education enclosed, helps you become a successful Forex trader from home.