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Trading: Move Like Chess Pieces

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Written by   84
1 year ago

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.

Our Old Chess Board😁

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. 😁


My 3D rendered Chess Board Scene

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.

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.

Binance emailed me a Futures margin call 😅

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.

As I said on my previous article entitled "Am I Ready to Trade? "

"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.

Want to trade with Detoken? Check these three articles:

👉Earn BCH with Detoken

👉Detoken experience (back up wallet to electroncash)

👉Detoken: Hedge to Earn BCH


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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Written by   84
1 year ago
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Comments

at naisip mo pa to hahaha ikawwwww na talaga. A clear explanation as always. Now I know why I hate trading. I don't even know how to play chess. Hanggang snake and ladders lang ako hahahha

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1 year ago

Salamat ☺️

Haha. Mahirap din yang snake and ladders haha. Lagi ako nkakagat ng ahas dyan😂🐍

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1 year ago

Hahahhaa magaling ako tsumempo sa dice. Ran a sa detoken din -_- lol

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1 year ago

Ayy hahha 😆

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1 year ago

5 hedge ko talo 😹😹😹😹 susundin na kita next time tlga beahhahaha

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1 year ago

Ayy hahha.. Sabay sabay ka nghedge nung nakaraan?,😅

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1 year ago

Uu. DB sb mo 480. Eh nanghinayang ako kc ng470 malay ko na tataas hahaa. 470, 471, 476, 481 ts talo pa din c 481 😹😹😹

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1 year ago

Hahaha ah napasabay sa pump, haha. Bakit dikit dikit 🤣 Ano entry mo ngayon?

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1 year ago

Uu, wala lang. Nasa mood ako maghedge hanggang naubos kaban at aun walang ng green lol.

Long @ 477. D ko pa nilakihan. Nawala tapang ko kay soulmate 😹🤦‍♀️

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1 year ago

Hahah nice green na green na yan haha.

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1 year ago

15 hrs pa. Pagbigyan na sana ko this time 🙉

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1 year ago

Halos same pla tayo e. 14 hrs ako @472 at 484, long din hahha Bawi tayo☺️

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1 year ago

Yes, sayang pagtaas eh. Need natin makabawi. 💪💪 ang lalim ng bubog ko kay deto ngaun 😹😹

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1 year ago

Babawi yan, sana magtuloy tuloy na mmaya til 600, or kung di man, mamaintain na lng nya yang ngayon haha para greeeeeen pa tayo😆

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1 year ago

Kurekkk. Wala pa nmn ako hedge. Pahinga sa hedge, hedge queen n ko masyadonhaha

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1 year ago

Next time na uli maghedge, pag lumipad na haha Hedge Queen, pedeng title ng movie or ng article mo ahaha😆

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1 year ago

Hahajahha. Tas ishshare ko mga l red numbers 😹😹😹😹😹

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1 year ago

Haha pede din, Then progressive sya. Nagstart sa puro red, then green ung ending haha. Tpos tripled pa sa capital, Hedge queen na🥳

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1 year ago

Hahaha ang gandang idea, magiipon muna ko ng green 🤣

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1 year ago

Oh di ba. May content na uli haha. Save mo na sa drafts haha..😁

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1 year ago

Pahiram ng utak T.T hahahaha how to be you po?

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1 year ago

Haha uyy grabe naman haha🤣

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1 year ago

Di n ako na tag n spam?

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1 year ago

Hindi na☺️

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1 year ago

Baka kaya nakikita n nung iba ang recent article ko kc di na ako spam ☺ beke nemen magpa ramdam ni si radomrewarder hahaha

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1 year ago

Hahha bihira lumabas so bot ngayon haha. Talgang random siya😅 Antay ka lng, at post pa, makikita ka na uli ni bot heheh buti di ka na spam 😊

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1 year ago

Kaya nga. Iniisip ko nlng baka ng trade p din c bot at wla pang profit HAHAHA

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1 year ago

I'm amazed pre hahaha this is worth to read! Ang ganda, very witty. Now I can use chess as an analogu when someone ask me😆

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1 year ago

Salamat pre haha. Yeah, you can use that as an analogy Good luck

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1 year ago

Welcome

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1 year ago

Wow . you explained it well and all are actually true..

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1 year ago

Thank you po☺️

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1 year ago

Wow, nice! Two birds with one stone! Learn the basic from chess and also from trading☺😲 nice thinking! I enjoy reading it hahaha so like chess, it's really hard to predict the move that your opponent will gonna make and will remind that every move you make, can be a checkmate! 💚💚💚think wisely and fight like you're a queen to protect the king 👑 Grabe naman this haha 🙈 love the idea lol

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1 year ago

Hahah wow, thanks for interpreting my work. That basically what I want to say. Be a queen☺️ Salamat ng marami sa pagbasa☺️

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1 year ago

Grabe po yung level of thinking, nag start sa lumang chess board at ang ganda ng kinalabasan ng article 😆sana all magaling humugot ng idea😆🤧💚💚💚

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1 year ago

Ayyy haha grabe observation neto, napansin mo un😆 Nice... ☺️🥳👏🎊

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1 year ago

May naalala ko dito hahaha nirerelate ko naman sa buhay yung mga paper crafts ko😹 tamang hugot lang din sa bawat gupit may pait sa bawat dikit may hinanakit pero sa bawat uhm okay spoiler alert nako😹😸

Pero over all maganda talaga 'tong article mo 💖

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1 year ago

Hahah wow. Hugot sa analogy aa. Asan yang article ng gupit dikit na yan hahah😂

Ayy salamat ng marami☺️☺️☺️

$ 0.00
1 year ago

Wala sa read.cash 😹

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1 year ago

Ahaha nasaan? Hmmm nasa magazines? ☺️

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1 year ago

Wow magazine na yun ah haha😹😸 magazine na pang balot ng tinapa😹

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1 year ago

Haha grabe hahah newspaper nmn ung sa tinapa e. Haha susyal tinapa nyo aa😂😂

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1 year ago

Oo wah si Daniel pa cover😹

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1 year ago

Good job mate,

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1 year ago

Thank you 😊

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1 year ago

Kainis naman, ahaha bat ang galing mo magpa liwanag. Pero ang hirap ko pa rin intindihin 🤧, di ako maalam ng chess kahit pa nipaliwanag mo na. Save ko nalang to para babalikan ko.

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1 year ago

Heheh.. Salamat ng marami😁

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1 year ago

Sana all expert 😎

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1 year ago

Uyy di pa ko expert, haha😅

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1 year ago

Di daw, pang expert na article mo ee

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1 year ago

Haha naisip ko lang yan eeee Heheh pero thanks😆

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1 year ago

Sana all malupet mag isip

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1 year ago

😊❤

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1 year ago