The king of animals, the lion, is an amazing creature. It can be described as one of the greatest predators in the world. Lions are fast, clever and strong. They can be perceived as brutal while on a hunt. On the other hand, when they are sleeping, they look so innocent, just like a big cat. An interesting fact is they spend more than two-thirds of the day sleeping. Lions are just as terrifying as they are worshipped by humans.
Lions’ life is truly fascinating, but this is not a place to talk further about that. Instead, this is a place for talking about trading. And there are some very important lessons a trader can learn from the king in the animal world. Let me present you with those lessons.
Cold calculations and ruthless hunting
The lions very carefully examine the prey prior to the hunt. They observe if their potential catch is injured, old or showing the signs of weakness. All this significantly increases the chances of successful hunting.
Then the lions take the positions and approach slowly. The moment a chosen target is close, they hit the herd with precision so the animals run in panic and the prey remains isolated.
Many traders make a simple mistake of not planning ahead. They register at Olymp Trade and open the transactions. They did not think through what asset to choose nor the trading method.
Such trading does not bode well for the future as a successful trader.
You may think, all right. It is a good thing to be prepared, but what to do when the hunt fails despite having a plan?
The lions will not give up. Typically, they will regroup and stand by. The herd will calm down and reunite. And the lions will start the hunt from the beginning.
The lesson for you is that nobody always wins. You have to be prepared also for some losses. And when it happens, you should wait, rethink the strategy and enter the trade whenever favourable conditions on the market will appear.
Adapting to the present situation
Everything is under constant change. This sentence is also true for a life in nature. There are times of abundance of food and lions get to choose between zebra, buffalo or antelope. But there are also times when life becomes tough and even the king has to adjust. So sometimes lions have to depend on the leftovers from the other animals’ preys.
It is no different in the financial world. Sometimes you will find pretty good conditions to trade. But there are times, the markets are not favourable at all. You will have to adapt to the current circumstances and develop a strategy that will work to your advantage in different situations.
Carefully plan a hunt before the execution
The lion cubs are taught hunting technique from their first days, although they are not allowed to perform hunting yet. It happens only when a certain age is reached by them.
Trader’s learning process should be similar. First, gather knowledge, get familiar with different approaches, different strategies and indicators. Then slowly practise them in a safe environment like the Olymp Trade demo account. Once you feel comfortable, move onto the real one.
When the lions learn hunting technique, each time they handle it differently. They need to communicate and decide, which pride members will disperse the herd and lead the target in the direction of an ambush. All the planning is a necessary step in getting a meal. And the food is essential to survive.
Sometimes, the lions attack in a wrong moment, maybe too early, maybe too late. Both ways, it gives time for the victim to escape. The problem does not lie in planning. This part was okay. The execution was what failed.
So the lesson for you is not only to have a solid plan but also choose a good moment to perform it. Only then you will end up making a profit.
Concentrate on easy targets
The lions feed mainly on animals living in a herd. Normally, they will attack the weakest ones instead of the biggest and strongest members of the herd. So they look for the individuals that are weak, injured and fragile. These are easy targets and at the same time hunting is less risky. The chances of ending up with a full stomach are greater. If the live prey is rare, lions will settle for what is left from the other animals’ preys.
What is the relation to the market?
Some traders want to trade all the time without any consideration of the present situation on the market. The lesson taken from the lions is to look for an easy way. Find markets where making money is not difficult. Then determine the finest trading strategies that will work on these markets.
Recharging the batteries
I have already mentioned that the lions sleep during the major part of their day. One can think they are lazy cats. But this is not really the case.
Sleeping is like recharging the batteries. It is time to relax and save the energy for another hunt. The lions are not replaying in their heads the previous unsuccessful expeditions. But they will plan the next one so it brings victory.
Now, do not take this lesson wrong. You must not sleep half of the day. What it means is that you ought to decide when to trade instead of doing it all day long. Analyse the market. Check the most favourable hours and make the best out of them. This can be a period of 2 hours, can be 5. The important thing is to use this time to the fullest.
What to do with the rest of your day? Well, it is up to you. You can learn new strategies or you can spend time with family, friends or a dog. Just do not forget to recharge batteries so you are ready for the next trading session.
Never drop the prey
The moment the prey is in the lion’s claws, it has slim chances to escape. The lions jump on their targets biting, scratching and suffocating their victims. Letting them go would mean an unnecessary waste of energy. And it also calls into question the survival of the pride.
In trading, the prey would be a profit. You must not let it go. Once you earn money, deposit them safely on your account rather than reinvest in the next moves. Because if that time trading brings you a loss, you will end up with nothing. So the lesson is to protect the profit you have already gained.
Begin as the lion cubs do
The lion is born and it is taught from the very beginning how to survive and hunt. But the learning process starts with the observation. Cubs spend a long time only watching older lions. Their skills are in great deal developed through playing with siblings. These first months are the base on which excellent hunting technique is built.
The same applies to the traders. You should start by learning, reading anything you will find on forums, blogs or in the books. Then you should play with what you have learnt on the Olymp Trade demo account. It will help you build the foundation for your success.
There is so much we can learn from nature. The lions are incredible animals and now you know also they can give you some lessons on trading. Listen to them if you plan to become the best or if you think about options trading as a career. Be patient and remember that knowledge is the key to success.
The lions are strong, but the large herd can kill even a king. The same way you should stay alert not to let the market wipe out your individual account.
Think about survival, choose the right time and the right method. Take all the conditions into consideration when you are going on a hunt.
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