Football and trading

The Champion’s League final (Liverpool vs Milan) is about to kick-off in a few minutes and in the run-up to the game the media focus has been squarely on the strikers, the chaps whose job it is to score the goals. The defenders, however, have an equally crucial role in the game, as it is up to them to prevent the opposition from scoring. Their’s is a burdensome role, and the glory will never be as great as the upfront players, but they are a vital component of the team.

Likewise, in trading, we focus on our winners and on making the profitable trade. This is what people want to know: how much profit have you made? However, it must be remembered that our defensive plays and strategies are just as important as those trades that bring in the lucre. It is the defensive approach that protects our capital when the going gets rough – just because the safety play appears dull, don’t let that detract from it’s importance.