What does one want from the markets

Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money – Ed Seykota

A very simple statement yet so deep is the philosophy behind it. Its amazing that I did not understand the depth of the statement when I went about showcasing why certain strategies / methods were not worth pursuing since the cost out weighed the benefits it supposedly came up with.

Then again, I failed to understand that not everyone is out here in the markets to make the maximum out of it. A large majority is here for the fun and if some money is made in the interim, all the better. But a very small percentage is ever going to wonder if I made a better CAGR return out here compared to the opportunities available elsewhere in markets (read Passive Investing).

Day trading is a very risky business with the probability of long term success reaching pretty close to the Zero level. But that does not stop the troops of young and old speculators who want to dabble in it. Many are not even here for the money since they have money in plenty, all they are looking for is the excitement of being able to beat the markets at its own game.

I know friends who are pretty happy with getting returns that have been achieved by many a fund and more or less achieved by passive investing as well. But, if you were to invest passively and reap the benefits, how the hell are you supposed to look like the King Kong of markets at parties where you want to be the Rock Star. After all, its only a dumb guy who would invest in Mutual Funds / ETF’s and reap the small benefits when the same is also available by trading day in and day out in the markets.

A lot of traders / investors have lost big money in markets and yet go about their life pretty happy with the sincere belief that it was Greece or Cyprus or Japan (or any other news) that was the reason for their loss this day / month / year and its just a matter of time before they not only recover their losses but thrive in the limelight of being the true master of the universe.

Markets are all about give and take. If you are here for building wealth, think deeply about what you are doing and whether some things can be done better. If you are here for the fun, Enjoy as long as your Bank Account is able to support. But whatever you do, do not mix the fun part with the wealth building part. It will only end badly and you would not even had the fun in the interim

About Prashanth

Have been a full time participant in the stock markets since 1996. Run a Yahoo Group where focus is exclusively on discussions of the Indian Markets using Technical Analysis as the tool (groups.yahoo.com/group/technical-investor)
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