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I think got to know you in the 1990s in the ring of the old Bombay Stock Exchange and 20 years since then there's one Maxim that stands out about you that you've said it in innumerous parties bars in the ring and I'll say it in colloquial and then translate it in English says vad vad that means buy as the market is rising sell as the market is falling what is the wisdom in that and how do you use it see R 20 I don't think for a good Trader we can I think we don't initiate more than 40% of Trades which are right right suppose I'm bullish say on XY stock now I buy that stock if it goes up it's a indication of the fact that I'm right and you know we we we do what I call is pyramiding I buy a stock at 100 I buy more than 105 I buy more than 110 so what are markets what is trading is basically momentum so you play momentum so if the market is rising it's momentum is upwards so you buy On The Rise the market are going down you sell on the sell on the fall and this I don't mind I don't indicate in long-term trends and you know medium-term Trends and short-term Trends this applies to short-term Trends medium-term Trends and long-term trends so you should never average a a losing trading position well at your own cost never I at least I never do it that's a huge mistake isn't it unless and until you know we believe our B stock at 90 and I feel you know it's going to it's going to have a big upside and you know the fall is 4 5% I might average or temporary but as a rule in trading I will never ever average but uh Rakesh are you then saying that a good Trader should have this highest position outstanding at the highest price absolutely why not who knows what is the highest price it's counterintuitive though isn't it I mean most people profits that's why out of 1 million Traders only 9 90 or 100 really make money what would you look for I would look for first of all look for Broad Direction don't try to be an expert don't try to predict every move every hour every day right take a loss know what to stake right I think this is I think I I mean I feel confident to trade anywhere in the world all what you need to have is a broad direction of the trend right a very broad idea don't try to an expert in it right know what to St and when to take a loss most people can't hold on to trading profits right is that isn't that the big problem well it's a problem but who knows you know I don't know I watch on this TV targets what are targets who can predict anything see when I buy a stock that comes a level at which I also feel that the price is unreasonable but at that moment I'm alert that unreasonableness has to be combined with technical you know technical weakness then only is you know then is only the move exhausted so what is the profit that means the lower tops for example or poor volumes or bad price action absolutely things like that General train and you know then the general belief of you know just believe in the market just go up there's no tomorrow trees don't go to the sky raak the other thing that uh all good Traders always pronounce is know how to take a loss why is that so important in um your because see nobody can predict momentum it can turn we never know you know all big moves start with small moves right and therefore the price is the first indicator of what is coming so if if I if I do a trade so I XYZ stock at 100 and it goes to 120 and I buy more don't worry the time is 90 be all squared up you you get hes you know I mean I can't sleep I can't eat I get such ones and some sometimes in the market against me I'm uneasy up 9:15 and 9:45 it's squared off you're fine in my career also I money in trading is not that every year I made money I made it in sports right and I made it in certain periods 89 to 92 2003 to 2007 2009 10 101 has been a good year so I made it in sports say 94 to 99 I would have made any trading income the idea is always as you said you know to when the iron is hot strike absolutely don't try to make 50,000 rupes a day and we are not earning in trading by employing billions of dollars in trading my net capital employe trading is 1 lakh so if I earn say even if I even earn one CR you can't imagine the return on Equity right CU everything else is borrowed and I pay interest on it so my real capital capital of my partn f is one lak really that's interesting so it's pure leverage you don't capital I put my and my wife's assets and borrow money and I use that you want to trade you trade trade is for creating capital investment is for growing that Capital don't confuse the right because in trading the risk is Extreme in investing wealth risk is not extreme see most people say they are investing but actually their mind is of a Trader that they want to create you can create un unimaginable return in trading I don't say that but in trading I can tell you one thing if if 10 lakh trade 9ak 99,99 say they made money and 999,9 that alline they Trading brok
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