Sunday, December 30, 2012

The Tiger Trader

[Contributed by Jitender Yadav]
I was watching on TV how lions hunt and it was really inspirational for us traders. As traders we can learn a lot from the hunting process of big cats. 

Patience- One of the most difficult qualities to develop in trading is the quality of waiting patiently. It’s particularly more difficult for day traders. Lions, tigers etc. wait patiently till the time when conditions are more in their favor.  They often go to hunt in the darkness of night as they have good vision at night while theirs preys don’t. 

Set-up- They look for easy preys and their favorite ‘set-ups’ are young calves, weak or injured animals or animals abandoned from their herd  In the same way a trader too first needs to find set-ups profitable for him and then play only those set-ups over and over again.

Risk Control- To avoid injury from the horns etc. of their prey they attack from behind and not from face to face. Traders should always try to minimize losses. Be wary of taking opposite position in a trending stock.

Choice of Hunt- These hunters rely on their own hunts and don’t eat animals dead because of diseases etc. Don’t trade in counters which have poor liquidity.

Emotions-These hunters hunt for their survival and not for the adrenaline rush or emotional high that they get in the process.

I am sure we can learn much more from these predators.


Dinesh said...

Dear Sir,

An excellent post by Mr. Jitender Yadav.

The 'Patience' and 'Set-Up' qualities have been very well explained.

I think it was pleasure reading the post.

I would like to add with regards to 'Choice of Hunt'. I would add that we should do some research our self also instead of totally relying on tips.


charan prasad said...

very correct.... even i try to watch them when ever i get time, but i like to prefer leopard as it is fast and shift

sometimesbullsometimesbear said...

Have u watched the cheetah.
It identifies prey, chases it, and stops after a particular time if the chase is not in its favor. This is because its body temp rises fast during the run and it has to stop to cool it down.

I see the cheetahs halt as a stoploss! :) Dont you?