Trading for NEED V/s. Trading for Greed.

 21^st January 2022

Trading for NEED V/s. Trading for Greed.

Dear Fellow Investors,

Namaste! I keep on getting the request to share the best trading strategy to make tons of money at the speed of thought. Today I have got the mood to share the secrets. I give you 1000% assurance that if you follow this you will never have to see failure in your trading endeavours. So, let us start.

Trading for Need: -

Look at all the shops in your area or wherever you go. They are the traders and they are running their shops to meet their needs. Let us see what they do.

1. Particular timings: - All the shops will have particular timings for opening and closing. All the shopkeepers will keep up those timings. 

If you are a trader in stocks – you need to follow particular timings.

2.   Arranging the goods and cleaning the shop: - Once they reach their shops – they will arrange their goods in an attractive way and clean the shop.

Once you reach your trading desk – you need to arrange your things and feed up your mind with the latest news and other market-related updates.

3.  Doing Pooja: - They will do some pooja after cleaning their shop.

   You need to remember your God or Existence with gratitude that it has given you one more day to live and trade.

4.   Waiting for the customers: - Now he is ready with an alert mind to look for the customers.

You need to wait for the market opportunities to come across. 

5.  Doing business with reasonable margin: - Shopkeepers know that he has to do the business for a lifetime. So, he will sell his things to his customers at reasonable prices. Sometimes, he will offer discounts also. Sometimes, if the things are spoiled – he will sell at throw-away prices or just throw away.

   You need to trade with reasonable profit as you also have to trade daily. Sometimes – you have to trade with little profit or little loss also. The idea is to have the capital intact – so that you can trade the next day.

6. Keeping good relationships with suppliers and customers: - Shopkeepers knows that if they have to stay longer in the market – they need to keep good relationships with their suppliers and customers. I know many shopkeepers have had the same suppliers for 20-30-40 years or more. They keep relationships for generations. The same thing they copy with their customers. Look at the jewelers or Kirana shops and you will realise these points. 

Traders need to keep long-term relationships with their broker/s. Longer and personal relationships help them to have funding and other facilities without any extra costs. Many times, some good trading idea is also given by the broking house bosses. Traders need to keep good relationships with other traders and market experts as they may give them some of the other trading ideas.

7.   Managing the losses: - Shopkeeper knows he has to go to the shop daily. So, if at all the losses occurs due to various situations – he will take immediate actions to reduce the losses and save his capital.

Traders will have to follow the stop losses and other safety measures like hedging to keep their capital intact. Those who take this step will win in spite of the volatile market and unpredictable situations.

8.   No Over Stocking: - Shopkeepers will not buy stocks above their daily selling average. He will maintain that balance. This will allow him to have the capital for some other opportunities and also peace of mind with respect to payment to the supplier. 

Traders in need will also not overtrade. They will keep a sufficient balance in their broking account so as to take care of the opportunities and sudden falls in the market. 

9.   Doing Daily Accounts: - Shopkeepers would write their daily accounts before closing the shop. This will allow him to decide about the next morning's payment schedule and receivables. 

Traders in need also write their accounts daily. They are aware of the End of the Payment due or receivables from the brokers. This will prepare him for his daily loss and profit and also the next day's strategy.

Trading for GREED: -

The above was the routine of the regular traders. They follow all the steps as a normal shopkeeper will follow. The problem comes when they are the traders for GREED in reality and appear or show themselves as the traders for NEED.

Traders for GEED want to make tons of money in the first shot. They are not ready to follow any of the above rules. They want direct jackpots and easy money. They waste their hours finding the one good sure-shot idea which can make them millionaires in the one-shot. Unfortunately for them and fortunately for the normal traders – there is no such thing as sure shot calls. (unless they are operating the shares or have some inside information – this is illegal and cheating).

What do ideal traders for GREED do?

They follow all the steps of Traders for NEED. They keep on doing their routine without any exceptions. In the process – they come across some of the other opportunities. At that time, they bet big and they make tons of money. 

Let me share Bruce Lee’s dialogue in the movie "Enter the Dragon", to bring home the point.

A good fight should be like a small play but played seriously. A good martial artist does not become tense, but ready. Not thinking, yet not dreaming. Ready for whatever may come. When the opponent expands, I contract. When he contracts, I expand. And when there is an opportunity, I do not hit. It hits all by itself. 

(I suggest you read it as many times as you can.)

A good trader is not excited about the superprofit. He is not afraid of losses. He is not dreaming or thinking while trading. He just plays his trade as per his calculations. When the market goes down, he buys. When the market goes up, he sells. When there is an opportunity – he trades big automatically.

As long as you have to rely on charts/information and other studies – you are a trader for NEED. This is the DOING paradigm.

The day you look at the screen and you take the call – you are ready for traders for GREED. Till that time – wait and sharpen your skill sets. This is BEING paradigm.

As long as you have to do GREED – you can’t be successful. But as long as you don’t follow the DOING regime of traders of NEED, you will never transcendent to the BEING. The normal time to transcendent from Doing to Being is 10000 hours as per Management Science. We have converted into 3 years – 10 hours per day for 1000 days. So, we ask our followers to be with us at least for 3 years.

What NEXT?

This is the basis for success in trading. If you don’t follow this basic and you dreamt of being super-rich by trading – you are cheating yourself only.

Work on yourself.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Learn a Lesson. Live with Passion & Invest with Reason.

Hitesh Parikh.