How Chess Makes You a Better Investor
Learning how to play chess can help you in many different ways. One area of life that is often not connected with chess is the world of investing. When you look at both disciplines more closely, you’ll actually find that there are some important similarities, and by becoming a better chess player, you can become a better investor too.
Look at the Whole Board
Investors commonly have a problem with setting clear financial goals and thinking long term about their investments. This causes them to make costly mistakes due to minor market changes, and prevents them from having the type of success they want. One of the first things you’ll learn in chess it to look at the whole board. If you become too focused on one area, or a specific situation, you will lose sight of the endgame. In chess and investing, you have to keep your eye on the ultimate goal.
Don’t Be Afraid to Adjust Your Strategy
In chess, there are hundreds of different strategies, as well as different tactics for openings, mid-games, and endgames. When playing, you need to be flexible and adjust when necessary. This is an important lesson for investors. Market conditions will change, and you must have the intelligence to know when to make an adjustment and the courage to make the change.
Pay Attention to Risks
When a professional chess player is in a game, he or she is constantly looking at the different risks on the board. Examining each of your opponent’s pieces and the danger it presents is critical to making the right move. In the financial market, it’s just as important to quantify and measure risk every time you make a decision. Focusing only on potential reward will get you burned.
These are only a few of the important lessons you can learn from playing chess. With enough practice in both activities, you can one day become an investor Grandmaster!