Chess and Trading - What chess can teach you about investments and calculated returns

It has made the lives of millions of people out there and has managed to bring down the economies of some of the most promising countries as well. Stock markets are perhaps some of the most volatile things man has ever managed to come up with. While many people know the tactics of how to play along and make money, there are thousands out there who are yet to understand the basics of stock market and the intricacies therein.

On this blog post, we will shed some light on how the game of chess can actually open your eyes to the logic and the abstract behind stock market and prepare you mentally to take the concept to your advantage. This blog is not on trading or how to trade using chess but the preparation and understanding behind it.

Chess and trading have a lot of things in common including the fundamental fact that you can never predict the outcome in each. In both, your actions can result in consequences that aren’t in your hand. Both chess and trading, though polar in nature, are again similar in the fact that knowing the rules, the basics, or how to play won’t help when you actually get on the field. So, if you’re into trading and stock market and looking to make decent cash on trading, start by playing chess. We have reasons!


1) Prepare for the Unexpected

Most of us fear to venture into stock markets because of the reason of failure and losses. While it’s only the success stories of people who have made it big that inspires us, we quickly tend to jump into trading without thinking about the negative consequences. Playing chess will allow you to think on that perspective. For every strategy you come up with in your mind, your opponent in chess would have a totally different counter strategy that could just stump you. Well, by playing chess, you’ll train your mind to think how to react and respond in such situations. Responding is very essential in chess and so it is in trading. Natural calamities, politics and more factors can bring down stock values, making you lose money. Under such pressurizing conditions, you need to train your mind to not panic but act with presence of mind. The more you play, the more you get better at strategic intelligence, crucial to both.


2) Temporary Loss is not equal to the Endgame

If you notice, a mature chess player will never panic or get upset over losing the queen. A player relies on his strategies and plans and not on his coins. The player knows that the game is his or hers till the king is alive and kicking. This is a crucial psychological lesson or attitude chess will help you inculcate in your mind. When you play, you’ll realize that plan As are not meant for victories and you’ll always have plan Bs, Cs and Ds in hand. Making the right move when your stock value crashes is more critical and that comes by playing chess. Besides, when you keep playing, your mind automatically starts visualizing your actions and their consequences, helping you foresee your state of mind several steps from your present moment. Such a calculative mind will make the least error and always play it safe in trading. It teaches your mind seamless navigation with the market and the power to take the right decisions.


3) You don’t repeat your Mistakes

In stock market, it is easy to get tempted and greedy. The urge to take wrong decisions is always high and you end up paying for it too. With chess, you learn how to not repeat them. As humans, we all have the tendency to make mistakes but where we go right or wrong depends on our ability to learn from. Greed being a driving factor for our monetary gains, it’s easy to succumb to the urge every single time. Playing chess allows you to have control over it. When logic takes charge, you end up outgrowing abstracts like greed, luck and chance. If you notice, chess players celebrate their losses more than their victories because the lesson they learn after every loss is more valuable than victory. As you play chess, you will take control of your mind and avoid falling prey to greed, making you take informed decisions.


4) You listen to Your Voice

If greed is a primary driving factor in trading, next is influence. When you’re into trading, all you hear throughout  your time in it are news, speculations and rumors on the market. People with half-knowledge and third-hand opinions come to you and offer you pieces of advice on trading and stocks. Playing chess will help you silence them and any such influence. When you train your mind with chess, the voice that comes from within takes charge of every action of yours! It knows what works and what doesn’t and mutes every other noise. The time you start listening to your voice is the moment you’re making progress.

These are just a few ways in which chess can help you trade better. More benefits are when you actually start training your mind with chess. If you’re into investments or stock market trading, the best investment you’ll make prior to venturing out is playing chess. Makes sense?