Today we're going to tell you how to trade like a lion hunts. Lions are equally feared and revered by humans. Their use of brute strength, speed and cunning when hunting makes them one of the world's greatest predators. Interestingly, lions spend over two-thirds of their day napping. During their nap time, these great cats seem harmless – until hunting time comes.
Well, this guide isn't about the life of lions. Rather, it's about the different lessons every trader should learn from them. If you learn these lessons, you'll become a better trader on the IQ Option platform.
So let's get started.
- 1 How do you actually trade like a lion?
How do you actually trade like a lion?
Calculating and ruthlessly executing the hunt
When lions hunt, their first move is to survey their prey. They're looking for the weak, injured or old. This increases the chances that their hunt will be successful.
After this, the pride will spread out. Each lion takes their position and slowly moves in. Once they're near their target, they strike with precision scattering the herd and isolating their main target.
Simply jumping into action reduces your chances of making any winning trades.
But what if the hunt isn't successful?
Lions will usually regroup and wait for the herd to settle down again. Then the process starts all over again.
What this teaches traders is that not all your trades will be successful. What you need to do after a losing trade is to first sit back, regroup and wait for the right market conditions to present themselves. Then enter into a trading position. Simply: trade like a lion!
Adapts to the current conditions
Life isn't always merry for lions. There are times when they have the freedom to choose what's going into their next menu. But most times, they don't have much choice but to hunt what's available. This means hunting buffalo, zebra and antelope among other prey. At other times, it means scavenging on other animals' kills.
This is similar to the financial markets. At times, you'll find them quite favorable to your trading style and preferences. However, you'll find that the markets aren't favorable most of the time. This means that you'll need to adapt to the prevailing market conditions and create a trading strategy that will make you money. That's why it's recommended you earn several trading strategies that work in different market conditions.
Each hunt is carefully planned before being executed
From an early age, lion cubs are taught how to hunt. However, they're only allowed to hunt when they reach a certain age. This learning phase is similar to what every trader must go through. You must first study the different strategies, indicators and money management tactics before starting to trade. After this, you must put your learning to the test in your IQ Option practice account.
Once a lion learns how to hunt, each hunt is approached in a different way. The lions must decide which members of the group will scatter the herd and drive the target towards the ambush area. This planning is necessary if the lions are to get a meal that allows them to survive. So trade like a lion also means act according to plan.
At times, the lions go in too soon or too late meaning that their prey has time to escape. This doesn't necessarily mean that their plan was wrong. It's the execution that went wrong.
As a trader, you not only need to create a good plan but also execute it at the right time to make a profit.
Lions focus on easy targets
Lions primarily prey on animals that live in herds. However, rather than target the largest members of the herd, they will usually target the young, weak or injured. These easy targets increase the odds of successful hunts. If live prey is scarce, lions will also scavenge on kills made by other smaller animals.
So how does this apply to trading?
Most traders will try to trade in all market conditions. This usually leads to huge losses. An easy and profitable route would be finding markets where it's easy to make money. Simply look for markets that are compatible with you trading style and preferences. Then, identify the best trading strategies to apply in these markets.
Always recharging their energy
Lions spend most of the day sleeping under the shade. It's not that they're lazy.
Sleeping enables lions conserve whatever energy they have in readiness for the next hunt. During this time, they're not worrying about the previous hunt that went wrong. They're planning how to make sure that the next hunt is successful.
This however doesn't mean that traders should sleep a good part of the day. It simply means that you should know when to trade and when not to. Choose hours when the markets are most favorable. This could be a 2 to 5 hour window. Then, during this window, make the best out of your trading sessions.
The rest of the time can be used to take time with friends and family or doing whatever you wish – anticipating your next trading session. So, trade like a lion, and take a break sometimes.
Lions never let go of prey
Once lions have pounced on their target, it has little chance of escape. All lions will jump on it, clawing, biting and suffocating it. They know letting the prey go simply means wasted energy. It also puts the pride's survival on the line.
As a trader, this lesson teaches you to protect your profits. Remember, profits can only be counted when they're safely deposited in your bank account. Avoid reinvesting your profits back into your next trades. One loss could mean that all effort exerted to make those profits is lost.
Start like a lion cub
Before a lion is able to join the pride hunting, it will spend months watching the adults do the hunting. It will also spend months training hunting skills through play with its siblings. These months form the foundation upon which the lion's superior hunting skills are built.
As a trader, you must do the same. You should spend weeks or even months learning how to trade. Learn how to trade by reading blogs, forums and books. Then apply what you've learned on your IQ Option practice account.
It takes a lot of patience to become a successful trader. And if you want to take up options trading as a career, continuous learning is a must. An excellent source of knowledge is our trading articles. Remember that lions can also get killed by large herds. Similar to the way that traders' accounts are wiped out by the markets. But in order for the lion to survive, knowing which herd member to target, when to hunt and which strategy to use while hunting is all taken into consideration.
General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose
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