While reading Gurcharan Das's masterpiece
"The Difficulty of Being Good" (Penguin Books)
I have been reminded of a beautiful life philosophy we read in school only to forget on reaching the college!
This may sound old-fashioned
but is a fine life-technology
written by a great mind,
sage Manu
in 100AD
in his immortal treatise, Manu-Smriti.
As prescribed by the great sage, the human life span is divided into four stages known as ‘ashrams’ (shelter).
The Vedas define a specific purpose for each ashram and offer specific instructions to be followed in each ashram.
I. The first ashram, Brahmacharya, is the student phase of life when the person is supposed to immerse himself or herself to learn the art of life and that of making a living.
II. The second ashram, Grahasta (meaning householder) ashram is the stage of family life. It constitutes raising a family, earning a living through the skills acquired during Brahmacharya ashram. It encourages the enjoyment of material life.
III. The third ashram, Vanaprastha (Retreat to Forest) indicates living in a withdrawn manner. People in this ashram play the role of mentors.
IV. The final stage is Sanyasa or renunciation. The person wthdraws from society to spend the remaining part of his or her life in meditation and solitude.
----------
I found it interesting as well as scary!
Scary because of seeming impossible implementation of ashrams in today's social setup.
Interestingly, i found it very useful for anyone who wants to prepare for trading.
Stage I:
Brahmacharya = Student phase to learn trading and technical analyses, refraining from trading!
True to expectations - this "Brahmacharya" is impossible for the debonair traders!
Stage II:
Grahasta = Making-a-living-by-trading phase
True to anticipation, ill-trained traders (who skipped the first ashram) fail in this stage except 'enjoying the material life' at the expense of the principal amount!
Stage III:
Vanaprastha = Retreat to forest (of investing)
This stage never comes! One can't be a good mentor if he hasn't been a good student!
Stage IV:
Sanyasa = True to the Inevitability, the dejected and rejected non-trader gets ejected from the market to spend his or her remaining life in meditation and solitude.
Strangely, this lost trader takes up the Brahmacharya (student phase) after the pain and humiliation of the Sanyasa!
In this second innings, Grahasta phase (making a living and enjoying the worldly pleasures) comes but with the spirit of Vanaprastha, courtesy the bitter experience of the first innings!
---
Showing posts with label Mahabharata. Show all posts
Showing posts with label Mahabharata. Show all posts
Sunday, November 14, 2010
Friday, November 12, 2010
Prepaid Trading - I
They say "Option trading is for the experienced traders only."
They say "Never trade naked options!"
The above statements are true lies!
True, because Options are more difficult to understand as compared to futures or Cash trading.
Lie, because these are more useful to inexperienced traders than experienced ones!
True, because naked options used recklessly are the fastest road to bankruptcy.
Lie, because hedged options are slow poison, and naked options, if used with caution, can be the shortest road to prosperity!
By not opting for the option of options
a new trader may miss out on the best feature of the option....
..........unlimited profit, limited loss!
Options became untouchables
when people who didn't read the "operational manual" of Options
started playing with it recklessly
and lost heavily!
They started saying
"my loss was limited...........to 100% of my premium!"
Onlookers believed all this over and above their perception that options were difficult to understand.
Thus, one of the most powerful and safe tools of trading became
"Only For Us"
for the select few!
Options are truely "unlimited profit, limited loss" provided you have read their "operational manual" (the do's and don'ts).
Those who have read it, know that trading with options is
....pre-paid trading, just like a pre-paid mobile!
Benefit of pre-paid mobile over post-paid is that in pre-paid you can control and limit your cost.
Similarly, option trading is a pre-paid trading wherein you can control and limit your loss
------------
Your technical indicators tell you that something is likely to happen in a particular direction.
You want to take the chance
but fear that your analyses may be wrong and you may lose money
or
you may be reasonably sure but fear of losing may simply make you a stone
like Arjun in Mahabharta!
Consequently, you opt out of the trade
only to see the trade eventually go your way....
....sans you!
On the other hand, if you knew options trading
you can buy a cheap "out-of-money" option and enter the trade!
If the trade goes the way suggested by your technical analyses
then you will double, tripple, quadruple your amount the fastest!
Otherwise, you lose a part of your small investment.
How much you lose depends upon how wrong your analyses went!
The loss because of analyses gone wrong, anyway, will be much lesser than when you would have invested in futures!
A naked option is the best way to learn with least money!
And it is also the fastest way to make a fortune!
You think you can't make a fortune by cheap "out-of-money" options?
I shall be sharing a few simple methods in the sequel to this article!
Keep watching this space!!!
They say "Never trade naked options!"
The above statements are true lies!
True, because Options are more difficult to understand as compared to futures or Cash trading.
Lie, because these are more useful to inexperienced traders than experienced ones!
True, because naked options used recklessly are the fastest road to bankruptcy.
Lie, because hedged options are slow poison, and naked options, if used with caution, can be the shortest road to prosperity!
By not opting for the option of options
a new trader may miss out on the best feature of the option....
..........unlimited profit, limited loss!
Options became untouchables
when people who didn't read the "operational manual" of Options
started playing with it recklessly
and lost heavily!
They started saying
"my loss was limited...........to 100% of my premium!"
Onlookers believed all this over and above their perception that options were difficult to understand.
Thus, one of the most powerful and safe tools of trading became
"Only For Us"
for the select few!
Options are truely "unlimited profit, limited loss" provided you have read their "operational manual" (the do's and don'ts).
Those who have read it, know that trading with options is
....pre-paid trading, just like a pre-paid mobile!
Benefit of pre-paid mobile over post-paid is that in pre-paid you can control and limit your cost.
Similarly, option trading is a pre-paid trading wherein you can control and limit your loss
------------
Your technical indicators tell you that something is likely to happen in a particular direction.
You want to take the chance
but fear that your analyses may be wrong and you may lose money
or
you may be reasonably sure but fear of losing may simply make you a stone
like Arjun in Mahabharta!
Consequently, you opt out of the trade
only to see the trade eventually go your way....
....sans you!
On the other hand, if you knew options trading
you can buy a cheap "out-of-money" option and enter the trade!
If the trade goes the way suggested by your technical analyses
then you will double, tripple, quadruple your amount the fastest!
Otherwise, you lose a part of your small investment.
How much you lose depends upon how wrong your analyses went!
The loss because of analyses gone wrong, anyway, will be much lesser than when you would have invested in futures!
A naked option is the best way to learn with least money!
And it is also the fastest way to make a fortune!
You think you can't make a fortune by cheap "out-of-money" options?
I shall be sharing a few simple methods in the sequel to this article!
Keep watching this space!!!
Saturday, October 23, 2010
The Trading Mahabharata
In Mahabharata
Kauravas outnumbered Pandavas by 100 to 5
In trading Mahabharata too
Kauravas outnumber the Pandavas!
The Kauravas are the ones who trade on gut feeling.
Even the Kauravas are of two types
the good ones who trade on gut feeling based on experience
and the bad ones who trade on gut feeling based on rush of blood.
The Pandavas are the ones who trade on the basis of a trading system.
They are in the minority!
The system of Pandavas tells them accurately about the trend of the Kauravas' guts!
Whenever a Pandava is in a dilemma over pulling the trigger as suggested by his system but discouraged by the Kaurava blood in him, Krishna (the trained part of a trader's brain) persuades him to follow his Dharma and enter the trade - leaving the result to him!
In the end, both the good Kauravas as well as the Pandavas go to heaven as both have fulfilled their respective Dharmas by following their respective trading styles.
Hell falls in the lap of the bad Kauravas who forgot their Dharma and followed their lust!
Kauravas outnumbered Pandavas by 100 to 5
In trading Mahabharata too
Kauravas outnumber the Pandavas!
The Kauravas are the ones who trade on gut feeling.
Even the Kauravas are of two types
the good ones who trade on gut feeling based on experience
and the bad ones who trade on gut feeling based on rush of blood.
The Pandavas are the ones who trade on the basis of a trading system.
They are in the minority!
The system of Pandavas tells them accurately about the trend of the Kauravas' guts!
Whenever a Pandava is in a dilemma over pulling the trigger as suggested by his system but discouraged by the Kaurava blood in him, Krishna (the trained part of a trader's brain) persuades him to follow his Dharma and enter the trade - leaving the result to him!
In the end, both the good Kauravas as well as the Pandavas go to heaven as both have fulfilled their respective Dharmas by following their respective trading styles.
Hell falls in the lap of the bad Kauravas who forgot their Dharma and followed their lust!
Subscribe to:
Comments (Atom)