Thursday, May 27, 2010

Trade "hunting" lessons from Lions!

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Lions tend to hunt mostly by night or in the early mornings

(Lesson) = Trade mostly by night (overbought) or early morning (oversold)

and for much of the rest of the time lions are the embodiment of lassitude (weariness, fatigue, tiredness) .

(Lesson) = Stay inactive till opportunity and best time to trade

However, being opportunists lions will hunt whenever the chance arises and that could be the middle of the hottest day.

(Lesson) = When an unexpected opportunity comes accept it with both hands

Of some significance here is the fact that lions are not very fast animals,

(Lesson) = It is a myth that only the most clever and dramatic people in the pit are the best traders!

while by contrast, the animals lion hunt are some of the fastest on the planet.

(Lesson) = The oversmart and hyper traders generally lose out to the opportunist hunters!

Consequently lions have developed two main hunting methods. The first - lion stalks from cover to cover with a final burst of speed at the end.

(Lesson) = Be on the lookout for tried and tested "hunting" signals

The second = find a bush close to something your prey needs - usually water - climb in and wait.

(Lesson) = Wait for the unbeatable itch-needs of your prey - excess greed and excess fear!

There are, however, two things that help the lion considerably. First, they are incredibly good at hiding and phenomenally patient.

(Lesson) = be incredibly good at "hiding" and phenomenally patient.

Secondly, the antelopes, while physically fast, are mentally not quite so sprightly.

(Lesson) = The careless "hyper-active" traders get hunted by the careful "patient" traders.

These antelopes pay perhaps too little attention to learning from their mistakes.

(Lesson) = Those traders who don't learn from their mistakes get hunted.

Lions know it very well that they are likely to miss 2 chases for every 1 successful hunt! Still they are kings of the woods!

(Lesson) = If you miss chances, you are still a champ!

If Lions spot danger to their lives, like when surrounded by a group of buffaloes or elephants, they call it "quits" for the next time!

(Lesson) = Stop loss. Don't make it a prestige issue!

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