Market Warfare !!!

This write-up is for the traders well past the basics; who have either found their holy grail in the market or are looking for one!

This article is dedicated to Dronacharyas - 'Al Ries and Jack Trout' who changed the life of an Eklavya (that's me) 14 years ago!

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In their masterpiece "Marketing Warfare", Al Ries and Jack Trout talk at length about 4 possible warfare tactics

- defensive, offensive, flanking, and guerrilla!

Everything in life is a warfare - friendly or hostile!

Ries and Trout's warfare tactics are applicable in each of those life situations

including Stock Market!

In stock market, either you beat the market or the market beats you.

The trader who has learnt the basics but is still losing needs tactics to achieve "results"

If you are heading straight into the market after seeing an "opportunity" which everyone is seeing

you are deploying "offensive" tactic by taking on the market at its strength

- deception and volatility.

You are likely to be beaten out if you are scantily-funded or weak-emotioned!

If you don't flow with the market frenzy but wait for the herd in the market to get caught on the wrong foot

you are deploying "defensive" tactic by catching the market at its weakness!

You are likely to win but need patience for the few chances that come.

If you are wise and practical enough to understand the foolhardiness of "offensive" tactic (till you are a pro)

and also hungry enough to be turned-off by the "peanuts" offered by the "defensive" tactic

then "flanking" tactic is for you!

Every assasination in the world's history took place when the assasin had studied his target's every movement of 24-hr minutely

and struck at the repetitively unguarded weak invitation point!!!

Market tries to be deceptive and unpredictable.

but still, being a product of humans, it is predictable in its habits.

We are generally so confused and frustrated by the chaos and frustration injected by the markets in our head

that we plainly miss the gaping holes in its defences!

We simply miss habit after habit of the market wherein it leaves its defenses down and is predictable like a child!

Under "flanking" tactic, a trader picks up one such weakness of the market and

keeps milking it again and again and again

forever

without shame!

(Market is about money and not honour!)

and without madly craving for innovativeness associated with a trading genious!

And finally,

if you haven't still found the soft spot of the market

better employ "guerilla" warfare

which, simply put, means

"surprise assault and escape with extraordinary concentration of available forces"

Whenever you are sure of the market mood for the next few minutes atleast

take heavy positions and scalp!!!

Whatever be your reality

probably you do need a "tactic" to succeed in the market warfare!!!