Investing & Trading lessons from Ant

 

Even Tiny Ants teach us Great Lessons!!!

What is the connection between the might man and a tiny ant?
A tiny insect too tiny to be seen is nothing to compare it with a man. But an ant can give a trader or investor many important lessons

 

  

1. Discipline:-

The sense of discipline among the ants is really amazing. Without lat mistake they march one after another in a line. How pleasant is their marching sight! Without any dispute or accident they move about in order.

 

Discipline is the foundation of all functional trading strategies. Without discipline, you will be harmed by the risks of active trading. These risks include fear, greed, and missed opportunity. Only by holding yourself accountable and remaining disciplined at all times will you be able to achieve your trading goals.

If you focus on your trading strategy before learning discipline, the details of your strategy will not really matter. Discipline is what makes successful trading strategies possible. Discipline is why technical indicator, risk management techniques, and trading principles pay off in the end.

 

2. Flexibility:

Any obstacle that put in an ants way, it is so flexible that it can either go underneath it, over it or around it. Flexibility is one of the great virtues of Ant.

 

 

A fundamental mistake many traders make is to forget to assess what type of market they are working with and adjust their approach accordingly. You must be able to quickly change your bias on price direction as new information (i.e. economic report, political events) arises.

Flexibility to adapt not only leads to survival in nature, but in the markets as well.  A single trader is not stronger than all the aggregate forces in the market.

 

3. Future anticipation & Planning:

Ant has tremendous planning ability with future anticipation. In summer, it starts planning for winter, like building up the anthill, collecting food and so on.  You must have read the story of ant and the grasshopper in your childhood

Trading is a game of anticipation with proper planning. Having a plan to be successful in any field of endeavor is highly recommended, but trading the market or any other financial instrument without a plan is almost a sure recipe for failure. Having goals set in advance and knowing when to get out of a trade make up an important part of successful trading.

 

4. Patient:

When winter arrives, Ant patiently waits for it to pass by and waits for summer

Patience is a virtue that is vital to success in trading. A large amount of patience is required in order to go through the learning curve. You need patience to wait for a trade where all the variables from your system align. And then patience is needed when in a position, in order to maximize profits.

“Everyone dreams of owning the Buffet portfolio but few have the patience.”

 

5. Never Give up:

An ant never quits. It struggles to the best of its ability and exhibits the attitude of ‘Winners never quit; quitters never win.’

Early on, new traders will want to give up. Particularly when they figure out that the first few years are more about studying and paying tuition in losses, than in making money. Trading is a two-sided competition, and you have to be on the right side of the trade to make profits. Not only does this not happen all the time, but many profitable traders only have 60% win rates. Half of the battle of successful trading is never giving up.