Wednesday, July 29, 2015

Learn Day Trading Strategies from Alligators to Become an Effective Day Trader
By Dr. David

Alligator Day trading strategyThe alligator is a fearsome and intelligent predator known to wait patiently for days or weeks on end until unaware prey come to the water’s edge and become its next meal.
Alligators are by many accounts the most successful animal that has ever lived; they’ve been around for about 200 million years and have out-lived the Dinosaurs, and they’ve evolved over time to become perhaps the most successful predator on Earth, next to humans.

Alligators are opportunistic predators; they’ve been known to learn the behavior of their prey and lie in wait for long periods of time almost to the point of starving, and then when the time is right they snatch their prey with confidence and precision.
In fact, it is quite common for people to swim with these animals for days or even weeks without any sign of aggression, until one day somebody goes swimming, fishing or even walking, and they never return.
This demonstrates real-world evidence that one of the oldest and most methodical predators on Earth is also one of the most patient and disciplined that has ever lived. Darwin’s survival of the fittest theory certainly favors this creature; they’ve been around since Dinosaur times because their method of hunting and adapting is so successful. The alligator and crocodile are perhaps nature’s ultimate “sniper”… they only need to eat once a week or so because it makes high quality kills rather than a high quantity of low-quality kills.
There are a ton of Day Trading Strategies we can learn from the Alligator,

Alligators Can Be a Trader’s Role Model:

They wait patiently and expectantly for the big juicy meals rather than morsels of small flighty fish that pass them buy.  Alligators are designed and have evolved to be patient “marksman” hunters…many little meals do not interest them as much as a big juicy nourishing meal does.
By trading less… our aim is to make a nice sized profitable trade that sustains us until our next trade. Sure we may have a few losses along the way to our big prize, but the goal here remains clear; waiting on the sidelines (or the shores of the swamp like the alligator) to pounce on our target and enjoy a huge meal. We don’t want to be running all over the pond or river chasing the small flighty fish… we’re going to wait it out and score ourselves a bigger trade that is predictable and has little to no draw-down on its way to profits.
\
Alligators are said to have a high success-rate: 

It’s fairly safe to say that if analligator teeth alligator gets its jaws around its prey, the prey is not getting away.
They have a good success-rate because they are patient and wait for the “easy” opportunities and then act with confidence and speed…they don’t hesitate.
In comparison a Lion might have many failed hunting attempts trying to catch a Gazelle or some other quick animal, expending a lot of energy in the process, alligators tend to have less “losing trades” or failed hunting attempts…because they don’t waste time or energy…they wait and wait and control themselves with precision until their target almost walks into their mouth…then they feast.
As traders, waiting and being patient will increase your success rate as well. Controlling ourselves is really all we can do as traders…we cannot control the market…we can only conserve our money andwait patiently until our trading edge presents itself. This is how you get a high success rate as trader, not by trading a hundreds of times each week in some futile effort to “scalp” the markets.


Alligators Are Good At Avoiding Risky Situations; they learn fast:  
avoid risk day tradingAlligators learn quickly and adapt to changes in their situation. They particularly learn to avoid dangerous situations very quickly”, according to the discovery show I watched recently, the ability of alligators to learn quickly and avoid dangerous or risky situations is yet another reason they’ve outlasted the dinosaurs and are still thriving today.
Avoiding risk is one way that a species can survive over time and “win” the battle of the fittest. Similarly, not taking on more risk than is necessary as well as learning quickly are two very important keys to becoming a successful trader.

Good Things Come To Those Who Wait: 

The alligator waits for the big meal because it makes more sense to wait and conserve energy by eating a large chunk of protein less often. The alligator conserves energy and time by eating this way and it also is one of the main things that has ensured the survival of alligators over millions of years during periods when food was scarce.
If you think about it sometimes during the time you are watching the market you are better off not trading, because by not losing money from over-trading …technically you ARE making money.  You are not paying commissions and you are putting yourself under less stress.  An alligator would probably eat less food overall if it was constantly running around trying to find small prey.
The alligator intuitively knows that by being patient and disciplined it has a better chance pf getting a higher-quality meal. The alligator knows itself and its own limitations and uses its strengths to its advantage. Indeed, the fact that the alligator has been around since dinosaurs walked the Earth is evolutionary proof that the concept of patience and discipline most certainly pays off.
The alligator intuitively knows that it needs to conserve energy and wait for the perfect opportunity, this patience is actually a “skill” and a habit for the alligator that has developed over the years.
Longevity is critical to a trader; we need to conserve the money in our trading be-patient-fortuneaccounts and not chase after mediocre trade set ups, or perceived missed trades, so that when the perfect trade or obvious trade come along we can get the most out of them.
If we go around trading everything we see we will most likely miss the great trade because we were in on the wrong side just previous. Worse yet you may shrink your trading accounts and not have enough money in your account to get the most out of the high-probability trade.

Alligators Are Highly Adaptable: 

Alligators learn quickly and adapt to changes in their situation. This is a large part of how and why they have survived for years while many other animals have become extinct during that same time. According to the TV program I mentioned earlier the alligator researchers often have to change their capture techniques because it’s very hard to catch them with the same trick twice.
Many wildlife experts think that the adaptability of the alligator, including its ability to wait patiently for the “perfect” feeding opportunity, is one of the main reasons they survived. It’s clear that the alligator’s ability to adapt to its environment and to changing situations is one of the reasons it has survived and thrived for all these years.
Many trading systems that are promoted in the market place have no real system, no set patterns – they promote multiple sells and buys and even though they don’t want to admit it they are promoting trades on emotion rather than precision. You hear trading gurus say things like “play every Ace”.  This is setting everyone up to be an over-trader, and more than likely a poor trader.
As traders, we have to adapt to changing market conditions, and as we’ve already discussed we need to have discipline to only trade when the trade set up is ripe for the taking. One of the beautiful things about Safe Day Trading is that the day trading strategies taught take in consideration, decreasing your risk, conserve your trades, be disciplined to the rules and have the patience to wait for the perfect trade set-ups. And YES, they do happen every day!

No comments:

Post a Comment