• : February 14, 2021
  • : B. Krishnakumar

The Search for Holy-Grail

I have been interested in physical fitness for several years now. I signed up for gym subscription with my current gym way back in October 2014. Just like any other person I was clueless about what to do, how to approach physical fitness and was running behind everything that was suggested in the social media and by my trainers.

There was no significant improvement in my fitness levels, but time just flew by. But, in the meanwhile, I gradually learnt a about fitness, and I could also relate how these learnings were relevant in trading too. Once I understood the basics of fitness, it became so easy to achieve what I wanted without obsessing about any particular aspect of diet or training.

The year 2019 was a landmark year for me in terms of my fitness progress. I lost close to 18-kilograms in weight and significant drop in fat around my waist. And more importantly, I have maintained this without much effort for about 2-years now.

You may wonder what has this got to do with trading? Well, there are lots of similarities between trading and approach to fitness. You need to focus on the process and not be obsessed about the outcome. Both in trading and fitness journey, you will encounter roadblocks and we need to go through the grind and not give up.

In the fitness activity, I was trying to look for the next magical aspect that would make me magically lose x- kilograms or achieve strength gain. Only later did I understand that such a stuff does not exist. Similarly, in trading too most of us are guilty of chasing that holy grail which could be a magical indicator or secret pattern or a fancy charting method that will give us the key to riches.

The point is there is no such magic pill be it physical fitness or trading. Understand the process and get a clear understanding of the basics. Here is an interesting table about variety of diets that are so extremely popular among fitness enthusiasts.

If you notice in that table, the weight loss happens because of the calorie deficit and the choice of diets do not matter much. There are other aspects too but let us not get there for the moment. In my case, I ate the normal south Indian food and achieved the weight loss in 2019 and am still maintaining it by eating the same food. I still eat “treat foods” but in moderation.

Similarly, in trading, any method or tool is fine as long as it yields a positive expectancy. The method or the tool should be something that you trust. This is important. If you do not trust it, then you will not stick to the process. Trust here can be termed as conviction too.
Once you have zeroed in on a process, then just stick to it. Do not keep looking for the next fancy stuff. There is no end to this search.

Execute at least 100 trades using your approach and then consider tweaks, if needed, to better your expectancy.

The message is that knowingly or unknowingly most of us (including yours truly) are guilty of searching for the non-existent HOLY GRAIL. In many cases, we do not even realise this.

Just ask yourself, when are you going to end this search and get into the real goal of making money consistently? So, get your priorities right and focus on the more important aspects that would make you a consistently profitable trader.