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Trading: Move Like Chess Pieces *I was arranging some stuff in my room and found our old Chess Board. Then an idea came out on my mind. A concept I thought would be cool if I made a comparison with trading.*

**Crypto Trading** is one of my favorite activity here in Crypto world. Not just because it's very profitable, But also the excitement it brings. Also it enhances critical thinking and decision making skills. As we all know how risk involved in trading. A wrong move can cause a very bad results. So a better judgements and decisions is very necessary, especially on managing our risks. **Chess** is a game of mind. It also enhances better judgement and our decision making skills. And of course, playing chess is fun and challenging. I will now make a connection between a Chess game and Trading. All of these are based on my perception and personal experiences. It might differ to others. 😁

**The Chess Board:** This is where the battle between two sides met, the Black and White piece. It consist of 64 alternating black and white squares. I compared it with the Trading Platform like **Binance**, where the battle of the trader to the market occurs. https://www.binance.com/en/register?ref=QJE1FHVX Hmmm I guess it must be more applicable if I say the trader has a battle with himself 😆. **The Chess Pieces:**

**Pawn:** Chess set has 8 pawns for each side, they are found in the frontline of the board. Pawns are the smallest among the pieces but has a huge contribution in the chess war. In trading, it signifies our **margin**, meaning to start small. Whenever I start a position, I place margin as low as 1 usd. And just like a pawn that moves one square(*one to two on its first move*), I make sure that my margin moves little by little too. As I always said that small gain is still a gain.

**Rook:** Two rooks are found on each side of the board. They move in two directions only, vertically and horizontally, and can move as many squares. They have a great contribution to the chess war by becoming a support for the attack made by other piece. In trading, I can compare it with the support you give to your margin. In my case, I use a mixture **cross and isolated margin**. Just like a rook that can move horizontal and vertical, In my position I always increase or decrease my margin depending on the movement of the chart. Same goes to cross margin, I add more funds so that my position will be much safer for liquidation. This is just my style whenever I trade. It might be not applicable to anyone. It is prone to liquidation if not used cautiously.

**Knight:** Each side has two knights found beside the two rooks. They has the ability to jump over the other pieces. An effective placement of knight in the chess war can contribute as an assault or back up for attacking the inside territory of the opposite side. In trading, knight can be my **additional margin** to my currently losing position. This is not advisable to all, but for me it is effective. Like a knight that jumps over other piece, I also let my entry price jumps by entering another position on top of another position. For example I longed BCH and unfavorable happens, so my position got negative unrealized PNL. I will decide to enter another long so that my previous entry price will decrease. If used correctly and the prediction became favorable (*without hitting stop limit*), the PNL became much profitable than the previous entered position. Thus like a knight, it jumps. ☺️

**Bishop:** Each side has two bishop, placed in a white and black squares. They move diagonally only and color specific only. Most of the time I used bishop as a sniper in a chess war, I position it far from enemies territory then it became a back up for the attacks of other piece. In trading, I can compare bishops as the **Stop Loss/Limit** and **Take Profit**. Why? Because of the diagonal movement of bishop, I thought that it signifies the limit I set, with a specific color which means specific functionality. As I said that I use bishop as a sniper in a chess game, in trading it also acts like a sniper, which when SL triggered, the risk of total loss may decrease, and also gain a profit if TP was triggered.

**Queen:** The most powerful among all the pieces. It moves in any direction(Diagonal, Horizontal and vertical) and in any amount of squares. An effective use of Queen can define whoever wins the game. In trading, Queen is the **Decisions** we made in every position. It signifies the proper entry point. It moves freely, like a trader decides whether he Buys(Long) or Sells(Short).

**King:** It is the most important piece. King needs to be protected from the enemies. The game ends whenever one of the kings of both sides got killed(Checkmate). King moves one square at a time and in any direction. It needs protection from all other piece. In trading, this is our entire position. We lose if the enemy(market😆) is unfavorable to our position. We will win if we defended our king, or the position. **Checked!** : It is a signal of the opposing side to the other whenever they chase the King or there's a threat to the King. In trading, it is like the margin call. For example in Binance, whenever your margin reached -80%, they will text and email me a margin call, informing that I might lose all the margin and close the position.

**To win a chess game we must:** Learn the basic Effectively use the functions of each pieces Read the movement of the enemy Plan your execution or next move Make a trap position Sacrifice a piece whenever necessary Support each piece with another piece Protect the Queen and King **To win a trade we must incorporate:** Learn the basic Familiarize with terms and the interface Critical thinking Decision making Start small Control your leverage Plan your entry and exit Manage risk properly Don't rush and keep calm As you can see, both has the same beginning item, which is **Learn the basic**. Also both needs a strategy, with this succes can be more possible to achieved. Both Chess and Trading need more practice to gain more experience and learn to do the actual. In trading, we can practice without compromising our real money by having Demo Accounts like SnapEx. https://read.cash/@Pisces-jr15/newbie-trader-friendly-snapex-df034dc9 As I said on my previous article entitled "Am I Ready to Trade? " https://read.cash/@Pisces-jr15/am-i-ready-to-trade-89adef64 **"*****Proper practice makes not just perfect but consistently correct*****."** **>>p1sce5** **Conclusion** None of us can control the market, but you can still control your move. So the fate of your trade or the chess game is in our hands. You are the one who decide whether to enter and to exit. Losing is unevitable, but with proper risk management like setting stop limit and leverage lower, you can minimize the damage of that loss. Don't chase that unfavorable candles, you might end up losing more and more. Learn to exit and stop a position, losing is part of it. Better to improve the next trade. Learn to accept loss, like chess game, Acceptance and the value of sportmanship is very important. Always losing? Here's my article about **how to deal with Losing Trades.** https://read.cash/@Pisces-jr15/losing-trades-079071ad Want to trade with Detoken? Check these three articles: 👉Earn BCH with Detoken https://read.cash/@Pisces-jr15/earn-bch-with-detoken-72a1c8c5 👉Detoken experience (back up wallet to electroncash) https://read.cash/@Pisces-jr15/detoken-experience-back-up-wallet-to-electroncash-a2fa0b4c 👉Detoken: Hedge to Earn BCH https://read.cash/@Pisces-jr15/detoken-hedge-to-earn-bch-42997c9e I hope you learned something and enjoyed reading my article. For any reactions and questions, feel free to use the comment section. Thank you☺️💚 **Checked mate!** #TradeSafely Information found in this article are all based from my experience and personal decisions. This can't be a financial advice but can be used as guide to create your own strategies. Do your own research and stay safe trading or investing. *Photo captured by me.* *3D chess board and pieces were created and rendered by me using* ***Autocad.***

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