[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.