Image Source: Pexels
 

I love nature. I love making analogies about nature.

Our neighbor had a small bird problem—and by "small bird problem," I mean both that the problem was small and the birds themselves were small. Hundreds upon hundreds of birds had taken up residence in the trees lining the sidewalk in front of their house. 

We don't know why they chose these particular trees over similar—even identical—trees along the road, but they did. 

These hordes of little birds were loud and messy, leaving the sidewalk and any car parked along the curb covered in droppings. Every time we walked by and caught our neighbors outside, they'd comment on how much they'd like to eliminate these birds and be rid of the noise and mess.

Well, one day it happened. All without any effort on their part. The noise stopped, and the birds were gone. In their place: a beautiful Great Horned Owl.

Fun facts about owls—they fly nearly soundlessly. They can turn their heads 270 degrees. They have asymmetrical ears and can therefore hear in a way that targets sounds with precise accuracy. Their vision works best from afar, but their eyes don't move, so they must turn their heads to change their view. 

These are ninjas of the sky, killing their prey with stealth and silence. Our neighbor's new friend was welcomed as their small problem ended abruptly.

After making a snack of a few small birds in the tree, the owl has taken up residence and can be seen most mornings on its perch, giving my dog and me an inquisitive look.

How do we trade like an owl?

Trading can feel like hunting in the dark. To be a good trader, we need to learn to see in the dark—to improve our sight and hearing so we can trade with precision. Obviously, this isn't a trait we're born with; we have to develop it. 

From my experience, the only way to develop this skill is to participate and practice in the markets daily, watching and discovering what we can see in price action, indicators, fundamentals, and all the aspects we can use to get better and better. Eventually, it's no longer trying to see in the dark but rather having developed our own "night vision."

Like the owl, we need to stay focused. Our eyes should stay set on what we're doing—the trades we're taking using our trading plan. 

When we develop success and profitability, be careful about how loud you are about your trades. The best traders are often the quiet ones, the ones who hunt in near silence. 

Certainly, share your successes and results, but let's remain humble in our trading, knowing that each day we need to hunt again. We don't eat once and stay full forever, and we're not guaranteed success—each trading day is different.

Now the downside: Sometimes we trade small problems for bigger problems. Those messy birds are gone, but now the neighbors have owl pellets on their sidewalk and grass every day. For them, it's a bigger problem but easier to manage. 

When we trade for bigger results, our risks may be higher, but they're usually easier to manage. 

Stay consistent in your risk management and be aware that there are trade-offs between risk and reward versus probability of success.

Have a fantastic weekend. 

Get outside. 

See the awesomeness and beauty around us.

More By This Author: