The Tortoise vs. The Hare – A Trading Metaphor

Everyone knows the story of the Tortoise and the Hare, but what you might not know is that it can be a very effective metaphor to describe the differences between winning and losing traders. Like the Hare, you probably experienced a lot of excitement and success right out of the gate, as you began trading your first live account. However, because you probably did not pace yourself by being consistent in your approach, you saw your early success evaporate as time went on, just as the Hare did. The Tortoise was much slower than the Hare, but because he was consistent and unemotional, he eventually won the race as you probably know. Thus, your goal as a trader, is to trade more like the Tortoise and less like the Hare, because that is how the trading game is won…

Are you a “Tortoise” or a “Hare” in the market?

In the fable of The Tortoise and the Hare, the Hare begins the race by ridiculing the slow-moving Tortoise and then leaving him behind in the dust as he sprints off from the starting line. The Tortoise, unemotional but sure of himself, begins the race in a slow but consistent manner, pacing himself from the start. The Hare gets distracted by other animals along the way, stopping to show off his speed as he tries to impress some lady rabbits (in the Disney video version) and as we all know, stopping for a nap along the way as well. Unfortunately for the Hare, this inconsistency and emotion gets the better of him and ultimately is the reason why he loses to the much slower Tortoise, even though he started with a huge physical advantage. The Tortoise may have had a disadvantage physically, but because his mindset was more consistent and in-sync with what it took to win the race, he out-lasted the haphazard and emotional Hare, and ultimately made it across the finish line first.

This fable of the Tortoise and the Hare really does a good job of describing the primary differences between traders who consistently lose money in the market and those who consistently make money.


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