One of the main and fundamental differences of rest from the work process is the opportunity to distract, relax and devote yourself to your favorite pastime. However, an active vacation at sea can be a good illustration, at first glance, of a paradoxical analogy with business.
In particular, surfing requires the athlete to take preparatory measures and comply with the behavioral principles that the work of the investor. Ivan Illan, Forbes magazine’s chief adviser, has cited several examples that eloquently reflect this connection.
1. Study of the situation
Not a single experienced surfer and even a trained beginner will enter the water without first evaluating the hydro and metrological conditions. The strength and direction of the wind, the behavior of the ocean, the wave parameters - all this will affect the surfing process.
Conditions are important to evaluate at least in terms of risk. The investor acts in the same way, analyzing the market situation, information indicators and behavior in the financial media.
2. Strategy preparation
After assessing the situation, a definition of a plan for further action follows. What can be the tactics of surfing on a wave with the given parameters? What will be the action with a large surf? In the same way, the strategy of investment behavior is determined. It is important to adhere to the plan, taking into account the risks and opportunities for adjusting tactics, but also in the previously defined ranges.
3. The riding process
Having caught the wave, it is important not to forget about technology and discipline. Both in the investment business and in extreme sports, there are always all kinds of temptations to impulsive decisions, which can cause a fall in every sense. Standing swimming technique in compliance with the basic rules, you should remember about ethical laws.
In both sports and business, respect for colleagues and competitors should be the basis of behavior, otherwise there will be high chances to stay with nothing.
Subject to the principles described above, there is also no guarantee of a successful outcome. The consequences will be of a different nature, but you should always be prepared for a negative scenario. Success by catching an attractive investment is a tempting goal, but the resources to achieve it must be carefully calculated.
And even if the game succeeds one or more times, in the long run, a strategy that is not supported by sufficient grounds, taking into account all the risks, will be doomed to failure. But just the ability to circumvent and minimize risks with maximum benefit is the key to success in investing and surfing.