ANML SPRTS | Part 1 š¦
One idea I am moving forward with is developing a fun project called āANML SPRTSā (animal spirits). The idea is to create a fun, engaging way for people to learn more about themselves and their style/traits/inner animal spirit of trading/investing! There are 9 different species we will be working through day by day, and you will be able to learn and decide which one suits you best! If at the end you still arenāt sure, Iāll be creating a s
urvey/quiz of sorts to take where it will have you answer a series of questions and tell you which animal fits you. Itāll be fun and free and hopefully you can share it with friends.
Eventually Iāll work on a free community based option where you can meet other people that fit the same animal style as you and you can bounce ideas off each other and learn through a hive mind. For now though, lets get to the first of nine Animal Spiritsā¦ the Lion.
Roaring with confidence and ready to pounce at opportunities, the Lion represents a distinct personality in the financial jungle. Are you a Lion? Let's find out.
Roaring Confidence
Lions, both in the wild and the financial markets, are fearless. As traders or investors, Lions feel comfortable walking on the wild side. They prefer high-risk, high-reward assets such as speculative stocks, cryptocurrencies, and derivatives. Their asset choices mirror their confidence ā they're not afraid of potential pitfalls; instead, they see an opportunity for significant gains.
The Lion's risk tolerance is, unsurprisingly, very high. They understand that with higher risk comes the potential for higher rewards, and they're comfortable with this gamble. They don't shy away from substantial risk; they embrace it, and it's this gutsy attitude that often leads to exceptional rewards.
The Instinctual Trader
A Lion's instincts play a crucial role in their trading or investment strategy. Lions typically learn by doing, thriving on the thrill of the game. This 'gut feeling' approach, though risky, can sometimes yield big wins, especially when backed by careful observation and quick action.
The learning and perception style of Lions lean towards the experiential. They learn best by diving right in, making their moves, and learning from their triumphs and tribulations.
The Two Sides of the Coin
Like the king of the jungle, a financial Lion exhibits power and control. Their confidence can pay off in dividends and can inspire others around them. They're often the trend-setters, the ones bold enough to make moves others might shy away from.
However, just like a real lion who might miss a beat and lose their prey, financial Lions can also face setbacks. Their high-risk tolerance and drive can sometimes lead to significant losses. Their reliance on instinct, while exciting, can sometimes overshadow the importance of meticulous research and analysis.
Legendary Lions of the Investing World
George Soros - "The Man Who Broke the Bank of England"
In the wild world of finance, George Soros is a Lion who roared so loud that he shook a whole country! Back in 1992, the UK was in a bit of a pickle. Their currency, the British Pound, was struggling, and they were trying really hard to keep its value up.
But Soros saw an opportunity here. He believed that the British Pound was overvalued and was due to fall. So, he decided to short the currency, betting against it. If the pound fell, he would make money.
Guess what? He was right. The UK government couldn't keep the pound's value up, and it fell dramatically on a day now known as "Black Wednesday". Soros made a jaw-dropping $1 billion in one day. That's the kind of roar a financial Lion makes!
Jesse Livermore - The Great Bear Raid of 1929
Jesse Livermore is another legendary Lion of finance, known for his daring bets and instincts that often hit the mark. His most famous play happened during the 1929 market crash, a truly wild period in financial history.
Livermore noticed that the stock market was overheated - like a car engine running way too hot. Prices were soaring, but Livermore felt something wasn't right. So, he decided to 'short' the market, betting that the stock prices would crash.
Just like Soros, Livermore was spot-on. When the infamous 1929 crash came, most people lost fortunes. But not Livermore. He'd bet against the market, and when it crashed, he came out with around $100 million - an unbelievable amount of money back then!
To learn more about these two lions, Iād highly suggest these two books especially if you feel like you personally are a āLionā:
^Soros
āReminiscences of a Stock Operatorā
^Livermore
Embracing Your Lion Spirit
If you identify as a Lion, embrace your strengths ā your confidence, your instinct, your willingness to take on risk. But remember, even a Lion must tread carefully. Balancing your bold moves with calculated analysis and risk management can go a long way in preserving your capital and driving long-term success.
Do you feel like a lion? If so find my post on twitter and do me a favor and retweet it! Cheers, and as per usual, keep your seat at the table!
Jaymes R.