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We see Connochaetes migrate across the Africa continent and ambushed by the crocodile in the pond. We see a pride of lions can do nothing with zebras gathering in flocks. There is some conventional wisdom of nature embedded in trading strategies.To get more news about WikiFX, you can visit wikifx.com official website.
A single dik-dik is weaker than carnivores. So herbivores stay in group to protect themselves from carnivores. Moreover, predators can only hunt a limited number of herbivores at a time compared to the large amount of the group. So the individual in the group doesnt have to run from predators. They mitigate risks by restricting the competition within the group. This strategy is also useful in Forex market trading. It is quite safe if we follow the crowd to trade. When we track the trading volume of certain currency pairs, it is found that the volume spikes during a fixed period of the day and stays relatively low for the rest time. This is because of time-zone effects, where people do business in different time separations and some spikes are enforced by influential events. So the market risks are hedged when a mass of traders engaging in the trading. What we have to do is what dik-diks do when facing a predator, that is, finding a perfect time of entry and exit.
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