As traders, we should learn from this book, and use the concept of mastering your strength, and banking more on your area of strength as a trader, whether you are a day trader, a position trader, or a swing trader.
Am sure by now you probably wondering why the topic ‘trading vs. hunting’? There are many similarities between successful/high probability trading and hunting. Let’s use a lion hunting for prey in the jungle. Lion in our case being you, the trader, the jungle being the forex market, and the prey being the trading opportunities that we are always looking to find on the markets.
If you have watched the national geographic, then you’d understand the hunting style of a lion, and other cats in the jungle. No matter how hungry the lion is, there is a formula that he uses to hunt. He doesn’t jump out rightly to chase the prey. First, on spotting the prey, he always takes cover, then watches the prey. At this point, I equate lion watching the prey to a trader studying and analyzing the forex markets/pairs that he/she’s looking to trade. After a careful and a thorough evaluation of the prey, the lion then spots the easiest target to catch, whether it is a weak prey, or one that is at the direction that is easier for him to chase.
This is the highlight of today’s article. So then what lessons do we learn as traders from the hunting style of the king of the jungle? At this point, how does hunting relate to trading? One of the most obvious lessons we learn today is that just like the lion, we as traders must not rush at our ‘prey’, i.e. opening random positions in the market, before taking our time to evaluate our chances of ‘catching the prey’ i.e. analyzing and identifying winning trades in the markets. At any one second on the markets, there’s always price movements and volatility, but it is not all the time that we get to identify high probability trades, which have high chances of making us money.
It is therefore paramount that traders need to analyze the markets using the techniques of price action, trend following, while observing the long-term support and resistance zones, in order to go for an ‘obvious’ trade that offers a good loss to profit ratio of 1:2 and above in order to make consistent money in the market. Mastering such strategies, and attaining the discipline of the patience of the lion requires proper trading education, and new traders to practice trading on the live markets while employing the trading education and strategies acquired from the courses they undertake.
As I conclude, it is paramount to note that the lion might not always catch the prey he chooses to chase, but most of the times he catches he’s prey of choice. This relates to trading in that it goes further to show that as traders, we will experience some losing trades, but as long as we have more winning trades that have high ratios of loss to profit, then and only then can we be guaranteed of successful trading and making money consistently from the markets day after day, month after month, year after year.
