What Crocodiles Can Teach You About

Forex Trading

Pere ln Lroplcal AusLralla, Lhe salLwaLer crocodlle ls a fearsome and
lnLelllgenL predaLor known Lo walL paLlenLly for days or weeks on end
unLll unaware prey come Lo Lhe waLer's edge and become lLs nexL meal.
Crocodlles are by many accounLs Lhe mosL successful anlmal LhaL has
ever llved, Lhey've been around for abouL 200 mllllon years and have
ouL-llved Lhe ulnosaurs, and Lhey've evolved over Llme Lo become
perhaps Lhe mosL successful predaLor on LarLh, nexL Lo
humans. Crocodlles are opporLunlsLlc predaLors, Lhey've been known Lo
learn Lhe behavlor of Lhelr prey and lle ln walL for long perlods of Llme
almosL Lo Lhe polnL of sLarvlng, and Lhen when Lhe Llme ls rlghL Lhey
snaLch Lhelr prey wlLh confldence and preclslon.
ln facL, lL ls qulLe common for people Lo swlm wlLh Lhese anlmals for
days or even weeks wlLhouL any slgn of aggresslon, unLll one day
somebody goes swlmmlng, flshlng or even walklng, and Lhey never
reLurn. 1hls demonsLraLes real-world evldence LhaL one of Lhe oldesL
and mosL meLhodlcal predaLors on LarLh ls also one of Lhe mosL paLlenL
and dlsclpllned LhaL has ever llved. uarwln's survlval of Lhe flLLesL Lheory
cerLalnly favors Lhls creaLure, Lhey've been around slnce ulnosaur Llmes
because Lhelr meLhod of hunLlng and adapLlng ls so successful. 1he salL
waLer crocodlle ls perhaps naLure's ulLlmaLe snlper". lL only needs Lo
eaL once a week or so because lL makes hlgh quallLy kllls raLher Lhan a
hlgh quanLlLy of low-quallLy kllls.
As Lraders, Lhere's a Lon of Lhlngs we can learn from Lhe crocodlle, leL's
dlscover some of Lhem.

Crocod||es are a trader's best ro|e mode|
1he crocodlle ls acLually our besL role model as Lraders, Lhelr behavlor ls
really Lhe perfecL meLaphor for how a Lrader needs Lo behave. We are
wlLhouL doubL predaLors, noL [usL Lradlng predaLors, buL as humans we
are naLurally bullL and funcLlon as hunLers. As Lraders, we musL copy Lhe
crocodlles' meLhods of hunLlng, we musL be dlsclpllned, paLlenL,
adapLable and meLhodlcal ln our approach. Crocs have also
demonsLraLed an ablllLy Lo learn qulckly and avold rlsky slLuaLlons as we
wlll dlscuss more abouL laLer, Lhese are also Lhlngs LhaL we need Lo do as
Lraders.
1hlnk of Lhe crocodlle.he's blg, faL, long and needs A LC1 of proLeln ln
hls dleL Lo survlve, Lo swlm and Lo hunL. ls hls energy besL spenL golng
around all day eaLlng llLLle balL flsh whlch are easy Lo caLch? lmaglne
how much energy he would expend Lrylng Lo caLch a hlgh quanLlLy of
low-quallLy prey llke LhaL all day. lf you have ever seen Lhese crocodlles
llke l have ln person, you wlll undersLand whaL l am saylng, crocs are
deslgned and have evolved Lo be paLlenL snlper" hunLers.many llLLle
meals do noL lnLeresL Lhem as much as a blg [ulcy nourlshlng meal does.
8y Lradlng less. our alm ls Lo make a nlce large meaLy" slze Lrade LhaL
susLalns us unLll our nexL Lrade. Sure we may have a few losses along Lhe
way Lo our blg prlze, buL Lhe goal here remalns clear, walLlng on Lhe
sldellnes (or Lhe shores of Lhe rlver llke Lhe crocodlle) Lo pounce on our
prey and cop a huge nourlshlng meal. We don'L wanL Lo be runnlng all
over Lhe pond or rlver looklng for any small plece of meaL or flsh LhaL we
can flnd.we are golng Lo walL lL ouL and score ourselves a nlce blg [ulcy
proflLable Lrade (or ln Lhe crocodlles case, probably a kangaroo, a dog, or
maybe even a human).
1here ls an expresslon ln Lhe Lngllsh language LhaL mosL wlll have heard
aL some polnL ln Lhelr llves: All good Lhlngs come Lo Lhose who walL".
1hls phrase ls merely dlscusslng Lhe merlLs of belng paLlenL, posslbly
frugal, dlsclpllned and well planned, buL lLs lmpllcaLlons are profound
and very Lrue for boLh Lhe crocodlle and Lhe Lrader.
lL may shock some of you Lo know LhaL nowadays l may Lrade only 3
Llmes per week or even less some weeks. ?ou're probably Lhlnklng
1haL's noL enough Lrades Lo make money", l don'L blame you for
Lhlnklng LhaL way and lL's easy Lo Lhlnk LhaL way wlLh mosL malnsLream
lorex webslLes pumplng day Lradlng and hlgh frequency Lradlng. 8uL, my
own personal experlence ls LhaL lL's much more lucraLlve Lo walL
paLlenLly for hlgh-quallLy Lrade seLups Lhan lL ls Lo sLay glued Lo your
charLs all day and nlghL Lrylng Lo Lrade everyLhlng you can flnd. 1he besL
Lrades are obvlous, Lhey almosL Lalk" Lo you and Lell you Lo Lrade Lhem,
once you know whaL you're looklng for Lhls wlll become apparenL Lo
you.
lor deflnlLlons sake l would refer Lo myself as a swlng Lrader and a Lrend
follower. l aLLempL Lo capLure Lhe larger moves LhaL occur over mulLlple
Lradlng sesslons or posslbly mulLlple days or weeks. ln Lhls way, l am
very much analogous Lo a crocodlle ln my Lradlng, ln facL l mlghL even
buy a plcLure of a crocodlle and hang lL up ln my Lradlng offlce Lo remlnd
me of how successful a predaLor Lhe crocodlle has been LhroughouL
hlsLory and mosL lmporLanLly, why lL ls so successful.

Crocs have a h|gh str|ke-rate
lL's falrly safe Lo say LhaL lf a croc geLs lLs [aws around lLs prey, Lhe prey ls
noL geLLlng away.
Crocs have a good sLrlke-raLe because Lhey are paLlenL and walL for Lhe
easy" opporLunlLles and Lhen acL wlLh confldence and speed.Lhey
don'L heslLaLe. Whereas a Llon mlghL have many falled hunLlng aLLempLs
Lrylng Lo caLch a Cazelle or some oLher qulck anlmal, expendlng a loL of
energy ln Lhe process, crocs Lend Lo have less loslng Lrades" or falled
hunLlng aLLempLs.because Lhey don'L wasLe Llme or energy.Lhey walL
and walL and conLrol Lhemselves wlLh preclslon unLll Lhelr prey almosL
walks lnLo Lhelr mouLh.Lhen Lhey feed.
As Lraders, walLlng and belng paLlenL can lncrease your sLrlke raLe.
ConLrolllng ourselves ls really all we can do as Lraders.we cannoL
conLrol our prey" (Lhe markeL).we can only conserve our money and
walL paLlenLly unLll our Lradlng edge presenLs lLself. 1hls ls how you geL a
hlgh sLrlke raLe as Lrader, noL by Lradlng a hundred Llmes a week ln some
fuLlle efforL Lo scalp" Lhe markeLs.

Crocod||es are good at avo|d|ng r|sky s|tuat|ons,
they |earn fast
Crocs .learn qulckly and adapL Lo changes ln Lhelr slLuaLlon. 1hey
parLlcularly learn Lo avold dangerous slLuaLlons very qulckly", accordlng
Lo Lhe arLlcle 1he LxLraordlnary Llves of Crocs. 1he arLlcle wenL on Lo
dlscuss LhaL Lhls ablllLy of crocs Lo learn qulckly and avold dangerous or
rlsky slLuaLlons ls yeL anoLher reason Lhey've ouLlasLed Lhe dlnosaurs
and are sLlll Lhrlvlng Loday. Avoldlng rlsk ls one way LhaL a specles can
survlve over Llme and wln" Lhe evoluLlon baLLle of Lhe flLLesL. Slmllarly,
noL Laklng on more rlsk Lhan ls necessary as well as learnlng qulckly are
Lwo very lmporLanL keys Lo becomlng a successful lorex Lrader.
l have sald many Llmes before LhaL rlsk managemenL ls kL? Lo becomlng
a proflLable Lrader. Some Lraders don'L learn qulckly llke crocs do,
lnsLead Lhey repeaL Lhe same mlsLakes over and over unLll Lhey blow ouL
Lhelr Lradlng accounL. Lven Lhough we are clearly far more lnLelllgenL
Lhan crocs, we have a loL more emoLlons Loo, and Lhese emoLlons ofLen
cloud a Lrader's guL feel" and cause Lhem Lo heslLaLe, second-guess
Lhemselves and over-analyze Lhe markeL. A croc does noL second-guess
lLself.lL's slmply such a flne-Luned predaLor LhaL belng paLlenL,
dlsclpllned and execuLlng wlLh confldence are ln bullL hablLs.
As Lraders, we need Lo learn from our mlsLakes, and fasL, because
money ls on Lhe llne. Cur verslon of avoldlng rlsky slLuaLlons" ls not
over-trad|ng and not r|sk|ng too much per trade.

Conserv|ng energy for the next k|||
1he crocodlle walLs for Lhe blg meal because lL makes more sense Lo
walL and conserve energy by eaLlng a large chunk of proLeln less ofLen.
1he croc conserves energy and Llme by eaLlng Lhls way and lL also ls one
of Lhe maln Lhlngs LhaL have ensured Lhe survlval of crocodlles over
hundreds of mllllons of years durlng many perlods when food was
scarce.
lf you Lhlnk abouL noL lnLerferlng wlLh your Lrades as helplng Lo make
you money, lL mlghL make lL easler Lo do. l acLually lmaglne LhaL l am
maklng money by noL Lradlng and by slmply dolng noLhlng, because by
noL loslng money from over-Lradlng and over-lnvolvemenL.Lechnlcally
you A8L maklng money. A crocodlle would probably eaL less food overall
lf lL was consLanLly runnlng around Lrylng Lo flnd small prey, Lhe
crocodlle lnLulLlvely knows LhaL by belng paLlenL and dlsclpllned lL has a
beLLer chance aL geLLlng a hlgher-quallLy meal. 1he crocodlle knows"
lLself and lLs own llmlLaLlons and uses lLs sLrengLhs Lo lLs advanLage.
lndeed, Lhe facL LhaL Lhe crocodlle has been around slnce dlnosaurs
walked Lhe LarLh ls evoluLlonary proof LhaL Lhe concepL of paLlence and
dlsclpllne mosL cerLalnly pays off.
1he crocodlle lnLulLlvely knows LhaL lL needs Lo conserve energy and walL
for a blg klll, Lhls paLlence ls acLually a sklll" for Lhe crocodlle and lL's
also a hablL LhaL has developed and relnforced ln crocs over mllllons of
years of provldlng Lhem wlLh large LasLy meals. LongevlLy ls crlLlcal Lo a
Lrader, we need Lo conserve Lhe money ln our Lradlng accounLs so LhaL
when Lhe "easy prey" or obv|ous trades come along we can geL Lhe
mosL ouL of Lhem. lf we go around Lradlng everyLhlng we see we wlll
shrlnk our Lradlng accounLs and we won'L have enough money ln our
accounLs Lo geL Lhe mosL ouL of Lhe hlgh-probablllLy slgnals. !usL as lf a
croc ran around all day Lrylng Lo caLch smaller prey lL would noL have Lhe
energy or poslLlonlng Lo grab Lhe blgger and beLLer prey.

Crocod||es are h|gh|y adaptab|e
Crocodlles learn qulckly and adapL Lo changes ln Lhelr slLuaLlon. 1hls ls a
large parL of how and why Lhey have survlved for mllllons of years whllsL
many oLher anlmals have become exLlncL durlng LhaL same Llme.
Accordlng Lo Lhe arLlcle l menLloned earller '1he LxLraordlnary Llves of
Crocs', .crocod||e researchers often have to change the|r capture
techn|ques because |t's very hard to catch them [crocs] w|th the same
tr|ck tw|ce."
Many researches Lhlnk LhaL Lhe adapLablllLy of Lhe crocodlle, lncludlng
lLs ablllLy Lo lgnore" hunger for long perlods whlle lL walLs paLlenLly for
Lhe perfecL" feedlng opporLunlLy, ls one of Lhe maln reasons Lhey
survlved whaLever kllled off Lhe dlnosaurs. lL's clear LhaL Lhe crocodlle's
ablllLy Lo adapL Lo lLs envlronmenL and Lo changlng slLuaLlons ls one of
Lhe reasons lL has survlved and Lhrlved for mllllons of years.
As traders, we have to adapt to chang|ng market cond|t|ons, and as
we've already dlscussed we need Lo have lce cold dlsclpllne Lo only Lrade
when our prey" ls rlpe for Lhe Laklng. Cne of Lhe beauLlful Lhlngs abouL
prlce acLlon Lradlng analysls ls LhaL lL's an lnherenLly adapLable Lradlng
sLraLegy. Whereas many Lradlng sysLems are rlgld and make you sLlck Lo
a sLrlcL seL of rules or condlLlons, prlce acLlon analysls glves you more of
a framework" Lo work off of when analyzlng Lhe markeLs and Lhls
framework can be used Lo Lrade any markeL condlLlon as well as adapL
Lo changlng markeL condlLlons.

"Crocod||e trad|ng" shou|d become a hab|t for
you
ln Lhe pasL, l have wrlLLen abouL Lhe value of paLlence and how lL ls Lhe
core aLLrlbuLe of some of Lhe greaLesL Lraders LhaL have ever llved. l
have puL forward Lhe argumenL on many occaslons LhaL 'less ls more'
and l Lhlnk ln Loday's markeL condlLlons LhaL sLaLemenL ls even more
relevanL. Cver Lhe years l have wrlLLen counLless arLlcles whlch dlscuss
how Lo lmplemenL a paLlenL Lradlng approach. My favorlLes belng,
1radlng llke a snlper and noL a machlne gunner" and 1he mlnlmallsL
gulde Lo Lradlng". Popefully many of you are really sLarLlng Lo connecL
Lhe doLs by now and have dlscovered flrsL hand [usL how powerful Lhese
concepLs are and whaL Lhey can do for your overall Lradlng performance
and proflLablllLy.
lL's almosL funny LhaL lL's Laken me unLll now Lo wrlLe an arLlcle on whaL
Lraders can learn from crocodlles conslderlng l llve ln AusLralla where
crocs are world-famous and plenLlful. lurLhermore, almosL every
behavlor of a crocodlle dlrecLly parallels whaL lL Lakes Lo be a successful
Lrader, Lhe slmllarlLles are almosL uncanny. 1he crocodlle ls naLure's
proof LhaL less ls more" and LhaL walLlng paLlenLly for Lhe hlgher-quallLy
opporLunlLles ls a reclpe for success. 1hls reclpe has kepL crocodlles
Lhrlvlng on Lhe LarLh for 200 mllllon years, and lL can and wlll help you
Lhrlve ln Lhe markeLs lf you use lL properly.
lL's crlLlcal for Lhe crocodlle Lo undersLand lLs prey and Lo know where Lo
look for lL and remaln calm and paLlenL unLll lL arrlves. As Lraders, we
have Lo know whaL our Lradlng edge looks llke and where Lo look for lL
and Lhen conLrol ourselves enough Lo noL over-Lrade before lL arrlves. lf
you wanL Lo learn more abouL Lhls crocodlle Lradlng approach" and fully
undersLand your prey" (prlce acLlon sLraLegles) Lhen checkouL my prlce
acLlon Lradlng course. My Lradlng course and oLher members' conLenL
essenLlally models and Leaches you how Lo Lrade llke a crocodlle", ln a
paLlenL and meLhodlcal manner wlLh a masLery of your hunLlng" sklll.
lf you en[oyed Lhls lesson, please leave a commenL below, cllck Lhe 'llke
buLLon' and share lL wlLh frlends.
Cood Lradlng, nlal luller - 1he Croc 1rader"