Stock Market Bionic: Wisdom of Magical Creatures

Author: Hong Fan / Country: Mainland China
Publisher:
Publish Date: 2006-05-01
Features: This book studies the art of stock market investment from a completely new perspective, primarily discussing the application of animal survival and competition philosophy in the stock market. Through the competitive instincts of various animals and the lens of biomimicry, it explains the principles of stock market investment. By analyzing animal effects and laws and combining market investment concepts, it provides an in-depth yet accessible interpretation of practical methods in the stock market.
Biomimicry has been applied to various fields such as social economy, science and technology, and military, but currently, there are no books in China that study the stock market from a biomimicry perspective. This book is the first of its kind in China to explore the stock market through biomimicry. From a biomimicry perspective, it discusses the application of animal survival and competition philosophy in the stock market, drawing on the unique abilities and wisdom of animals to learn stock investment methods. Additionally, by analyzing animal effects and laws and combining market investment concepts, it explains practical methods in the stock market in a clear and concise manner.
The "predatory" techniques of the stock market in biomimicry involve creating advanced technologies applicable to production, learning, and daily life by mimicking the functions of animals and plants in nature. These techniques have been applied across various industries. Similarly, biomimicry can be applied to stock investment, allowing us to learn stock predatory techniques from the unique hunting abilities of animals.
Locking the target: Animals are highly strategic during the process of hunting prey, especially in selecting their targets. For example, the fastest-running animal—the cheetah—can reach speeds of up to 110 kilometers per hour when chasing prey. Cheetahs, belonging to the carnivorous feline family, hunt animals such as deer and gazelles. While deer and gazelles can run no faster than 70 kilometers per hour when fleeing, they are quickly captured. However, cheetahs do not chase every prey they see. A cheetah's weakness is its lack of endurance, as it cannot maintain high speeds for long periods. Therefore, it only targets nearby prey and avoids chasing distant ones that are beyond its capabilities.
Investors also need to do their homework on stock selection before buying shares. The focus should be on analyzing and selecting stocks that may become leaders or key sectors in future trends. This allows for quick and accurate entry when the trend begins. The steps for selection are as follows:
First, identify sectors that may become hotspots in the future. It is important to note that the sustainability of these hotspots should not be too short, and the themes of the sectors should have room for imagination. The leading stocks in these sectors should have the ability to boost market sentiment and drive the overall index.
Second, the capacity of the selected sector should not be too large. If it is, it must be subdivided. For example, the technology sector has a large capacity, and it is impossible for all its stocks to rise in a moderate-term trend. Therefore, it can be subdivided into several sectors based on industry and geographical characteristics, allowing for targeted selection.
Third, select individual stocks carefully. When selecting stocks, it is better to be selective rather than excessive. Generally, only 3 to 6 stocks should be chosen per sector, as too many can hinder analysis, attention, and rapid, correct decision-making.
Patience is key: The orca is a killer among whales, preying on medium-sized marine mammals such as sea lions, seals, and dolphins, as well as larger species like baleen whales. Orcas are very patient when hunting other whales, with several orcas silently tracking a mother baleen whale with a calf for days or even weeks. Their target is the calf. When the calf becomes exhausted and gradually drifts away from its mother, the orcas attack. The orcas first use their bodies to press the calf to deeper water, while others try to distract the mother. The calf, unable to breathe in deep water, becomes unconscious. The mother, unable to fight, is forced to swim away. Thus, a hunt begins, and in an instant, the calf is torn apart, turning the sea red with blood.
In addition, wolves are also very patient, stalking prey for long periods, even humans, waiting for the right moment to strike. Our familiar domestic cats can patiently lurk near mouse holes, motionless, until the mouse can no longer resist and peeks out. Then, the cat swiftly captures it.
After selecting prey, animals often wait for the best opportunity to strike. Investors should also pay attention to the timing of entry after selecting stocks. Sometimes, the sectors and stocks chosen may not immediately become market hotspots or start rising trends. In such cases, investors need to track and wait patiently to seize the best entry opportunity.
Stay calm: Crocodiles are generally slow-moving but can frequently catch fast-moving fish, birds, and mammals, even agile monkeys and leopards. This is because their attacks are highly strategic. They usually remain motionless, like floating logs on the surface, with only their nostrils and eyes visible, patiently observing movements on the water and land. When they spot prey on the shore, the clever crocodiles quickly dive below the surface and slowly swim toward the animal, approaching it cautiously before suddenly leaping out of the water and biting it, dragging it into the water with force. In the blink of an eye, the crocodile demonstrates astonishing hunting speed and explosive power, leaving other animals unprepared.
Investors also need to stay calm in actual operations. Stock price increases are rarely smooth, often accompanied by multiple adjustments, and sometimes the speed of rise may lag behind the overall market or other stocks. In such cases, investors should maintain a calm mindset, avoid frequent trading or stock switching.
Rational pursuit: Whether lions, wolves, tigers, or leopards, these fierce predators often exhibit a rationality beyond human understanding when hunting. They do not chase the largest or most muscular prey but instead target the smallest, weakest, and easiest-to-catch ones. For example, crocodiles never chase difficult-to-acquire targets. The crocodile's hunting method may seem less spectacular on the surface and more passive, but it requires less energy to obtain food. During the Ice Age, when food was extremely scarce, crocodiles survived extinction due to their low energy consumption, small appetite, and efficient hunting techniques.
In contrast, fierce predatory dinosaurs, despite their relentless pursuit of prey, ultimately went extinct because the food they obtained could not meet their high energy demands.
However, investors in the stock market often fail to properly balance the relationship between high-profit goals and easily achievable profit goals. Many investors, in pursuit of high profits, take on excessive risks, only to achieve nothing in the end. In a rising market, some investors, even after profits have been made, are reluctant to sell, hoping to maximize their gains. When the stock market falls, some investors refuse to stop losses in time, always dreaming of a bigger trend ahead and hoping to sell without any losses.
In reality, there is nothing wrong with pursuing maximum profit, but the is that it must be based on minimizing risk and must comprehensively consider the risk-reward ratio. In the stock market, the safest hunting strategy is not to pursue maximum profit but to pursue profit that is realistically achievable. P3-6