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Important Lessons Every Trader Must Learn from Lions


Lion male having a rest lying on the mountain

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 theses lessons, you'll become a better trader on the IQ Option platform.

So let's get started.

teaching lion

Calculating and ruthlessly executes the hunt

When lions hunt, their first move is to survey their prey. They're looking for the weak, injured or old. This increases chances that their hunt will be successful.

After this, the pride will spread out. Each lion taking their position and slowly moving in. Once they're near their target, they strike with precision scattering the herd and isolating their main target.

Now, most traders will simply open their IQ Option trading account and jump into action. There's no prior plan (what asset to trade and what conditions to trade in).

Simply jumping into action reduces your chances of making any wining 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.

Adapts to the current conditions

Life isn't always merry for lions. There are times of plenty where they have 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 animal's kills.

dangerous lion

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.

At times, the lions go in too soon or too late meaning that their prey has time to escape. This doen'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.

lion

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.

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

lion asking

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. Remember that lions can also get killed by large herds. Similar to the way that trader's 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 are all taken into consideration.

Good luck!

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Bart Bregman

Fulltime Day trading, and help Iq option wiki in my spare time to build an awesome platform to help beginners out there. #digital nomad, traveling all over the world.

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