The dojo and the stock market: an analogy

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How being an investor is akin to being a martial arts practitioner. FMTNews FMTLifestyle StockMarket Taekwondo MartialArts

Like taekwondo, investing in shares requires you to anticipate movements and roll with the punches.

Your opponent takes two steps back and you advance quickly with a sidekick, sending him flying off the floor mat. The rest of the match is history. Convinced that he has fallen for your bluff, you launch a roundhouse kick. At the same time your opponent steps in, closes the gap between you, and raises his foot to give you an axe kick. He collects two points, having anticipated your move.There are three major players in the stories above. The first opponent represents how most people invest in the stock market – fearful and unprepared to face market uncertainty.

The stock market is capable of launching attacks. A good investor will be prepared to defend himself. Your second opponent moved forward when attacked, denying you the opportunity to follow up with further action. He was experienced enough to spot a decoy and was prepared for what was coming.

 

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