• Written by News Company

As traders, crocodiles are our best role models because they have the perfect metaphor for how a trader ought to behave. As humans, we are naturally created to work as hunters. We, therefore, need to copy the crocodile’s method of hunting which calls for discipline, patience, adaptability, and methodical in our trading approaches.

Crocodiles are known to be quick learners who can avoid risky situations. They are big, fat and require a lot of protein in their diets to survive. They can therefore not spent so much time swimming and hunting little bait fish, instead, they are patient to make big catches. They have no interest in the small meals, in its place, they go for big juicy and nourishing meals.

By not trading as much, the main aim is to make large ‘meaty’ size trades which can sustain us until our next big trade. Sometimes, we are bound to make a few losses along the way. However, the goal remains clear, to pounce on the prey and get a nourishing meal.

Like a crocodile, we do not need to run all over the pond or river in search for small pieces of meat or fish. Instead, we ought to be patient and score huge juicy profitable trade.

Crocodiles have a high strike rate

Crocodiles have a high strike rate because they are patient and can wait for easy prospects. They can then act with confidence and speed, without any hesitations, which is different from a lion who might have failed in several hunting attempts trying to get hold of prey, and thus spending a lot of energy in the process.

Crocodiles tend to have less ‘losing trades’. This is because they do not waste time and energy. Instead, they wait, controlling themselves with precision until the prey walks into their mouths. As traders, patience can increase our striking rates. We can conserve our money until such a time when we have sharpened our trading edge.

Crocodiles avoid risky situations

Crocodiles can learn and adapt to changes in their situation. As a trader, you need to avoid taking more risk than is necessary, and also quickly learn vital keys to becoming successful. Risk management is a vital aspect if you want to become a profitable trader.

It ironical that some traders refuse to learn. As a result, they end up repeating the same mistakes severally until their trading accounts become depleted. In as much as humans are more intelligent than crocodiles, we have a lot of emotions which cloud our gut feelings, thus causing us to hesitate, second-guess and over-analyze the market.

Conserving energy for the next kill

It makes a lot of sense to wait and preserve energy by eating large chunks of protein less often. Crocodiles preserve time and energy by eating this way. As a result, they had continued to survive over hundreds of years even during times when food was scarce.

Sometimes, by not trading, you are technically making money since you are not losing money by overtrading and over-involvement. If it were frequently running all over to look for prey, crocodiles would end up eating less food overall. However, they intuitively understand that by being patient and disciplines, they have better chances of getting higher-quality meals.

Being patient and waiting for a big kill is, in essence, a skill and a habit while the crocodile has developed over many years. As a trader, longevity is critical. You need to conserve your money in your trading accounts and avoid high probability signals.

Crocodile trading should become your habit

As traders, we need to know what our trading edge looks like and where to look for it. As a result, we will be able to control ourselves enough to avoid overtrading before it arrives. This will ensure that you do not blow out your account and can, therefore, last in the market.