5 ways BASE Jumping is like Forex Trading

The journey to reaching the top of a mountain and to take that leap off the next great height runs parallel to the path a trader must undergo before entering the global forex markets. Following FXTM’s recent partnership with BASE jumper Valery Rozov, in this article FXTM looks at some of the common skillsets that are required from either a BASE jumper or a forex trader.  

Training is key. Significant time and knowledge goes into scouting out the jump point, becoming acquainted with the surrounding environment, understanding and being aware of the risks at each site, and finding just the right angles and conditions for the jump. In a similar sense, it’s no secret that navigating the financial markets and being a successful trader requires a lot of investment in forex education and constant expansion of your knowledge on the markets. An understanding of the financial markets and the conditions that exist should be efficiently developed, as it can affect your chosen trade. That’s why we always encourage traders, no matter their level of experience, to keep developing their trading skills and knowledge of the markets.  It’s not just about the trade or the jump – it’s about the accumulation of knowledge and prep work leading up to them.

Every moment counts. In BASE jumping, you have to factor in changing conditions such as wind, temperature, and precipitation. Due to shifting conditions, your plans can change at any moment. These can all affect the jump and have to be factored into the carefully-calculated plan. Similarly, in trading, rapidly shifting market conditions have the power to introduce change in your trading strategy at any moment. That’s why it is extremely important in both fields, to build your strategy in advance, but also be able to make decisions on the spot, react and adapt to the environment and changing conditions quickly and efficiently. As a trader, it’s important to choose a broker that provides you with all the tools you need to create a robust trading strategy. One that can withstand any market shifts.

Technology gives you the edge Innovation is vital in providing the best trading experience, with technology playing a big part not only in the advancements of products and services, but also in being able to offer the best trading conditions, via super-fast execution speeds and low latency. Just as in forex, the improvements in technology year in, year out make the trading experience better, faster, and create opportunities that didn’t exist before – technology also creates new possibilities in BASE jumping. While it might not necessarily seem like a very ‘techy’ sport, the technology behind the wingsuit is crucial. The revolution of technology in BASE jumping over the last 10 years has opened up a huge window of opportunity; jumps that were once considered impossible, can now be achieved.

Trust is paramount. In BASE jumping you need to trust your equipment, as well as your own knowledge and expertise of when a jump is right and when it isn’t. Similarly, in trading you need to be able to trust your own trading instincts, but it’s just as important to trade with a reputable and regulated broker so that you have equal confidence in the products, services and trading conditions you’re working with. Traders should therefore ensure that their broker implements proper risk controls and diversification, and has a robust risk management strategy in place, in order to protect their assets.

It’s important to control your emotions. In both trading and BASE jumping, staying calm and composed is crucial. Keeping a level head means that you will be able to make decisions based on facts and not emotion, allowing you to quickly and efficiently adjust and change your strategy in the moment. The speed at which the markets can move can be daunting, but with the right knowledge and training, a level head, and the right tools to trade with, it can also be one of the most exciting aspects of trading – just like BASE jumping.