Combative Trading: Revealing the Secret Behind My Trading Success

Mar 5, 2020

Vijay Bhambwani, Editor, Fast Profits Daily

With over 35 years of experience, I cannot possibly count how many aspiring traders have come up to me and said - 'Mr. Bhambwani, what can I do to become as profitable as you?' I see the glimmer in their eyes, hungry to learn, ready to take on the world..

Which is why it pains me to answer their question. You see, if I tell them the truth - the truth about how many sleepless nights I've spent, the truth about how I've gone without a day off for years at a time, the truth about how long I've had to stay away from my wife and kids - they would be distraught. And you can't do that to young minds. It would only discourage them.

Which is why I go with the standard - 'Just be sincere, it will all work out'.

I feel it's finally time I tell you guys how hard it really is, and what it actually takes to make it big in the trading world.

If you would like a rough idea of what you're stepping into - watch this video now.

"Hi, this is Vijay Bhambwani and today I am going to talk about why trading is like combat. I have often said we traders are brain warriors. I emphasized on the world warriors, because we trainers are actually fighting a passive war.

I believe, and you may choose to differ of course, is that trading is not linearly comparable to competitive sports. Competitive sports, even though highly competitive, are not as vicious as warfare, but trading is actually subtle war. You don't fight with guns and bullets.

You fight with a mouse and a keyboard, but the effort is towards taking the other guy's money out of his pocket through your trading terminal and putting it in your pocket. It's a no - holds barred warfare where you do not take prisoners.

The market is unforgiving. It's non - negotiable. It cannot be reasoned with, and the winner takes it all.

In competitive sports, take, for example, hockey or football, your goalpost is stationary, so a footballer or a hockey player knows he has to dribble the ball towards the goal post and hit a final scoring shot. But in trading, as and when the prices fluctuate - blue for bullish and read for bearish, your goal post has changed a bit.

Try hitting a mobile target with a gun. You will find that a mobile target is infinitely difficult to take down. That is the difference between trading and competitive sports. It's actual warfare.

Now, how does trading derive most of its terminology, thought processes and the underlying reasoning from warfare? Let me tell you a short story.

In the Second World War, the German bombers used to assemble from France across the English Channel, start bombing the coastline of England, starting from Nova. The British basically were clueless till radio direction finders or rough duff (the early versions of radar) was invented.

Once radar was invented, the Germans started realising that the British had acquired the technology to basically find out when the German bombers had taken to the skies. They then, instead of flying in a straight line, used to fly through the clouds or take a circum - navigational route towards Dover. This was to confuse the radar spotters as to what the destination of the flight would be.

A brilliant radar operator, using be known range of the average German aircraft, it's flying speed and the duration for which it could stay up in the air without re - fuelling used the simple calculus as to how far the flight would deviate from a straight line before running out of fuel and therefore be able to calculate where the flight would actually come and attack or drop its bombs.

This was the early example of a variable or an adaptive moving average.

Take, for example, Field Marshal Erwin Eugen Rommel of the German Army. He is known as the father of modern mechanised tank warfare. Admittedly, he derives a lot of his techniques from Von Clausewitz, the father of modern mechanised warfare. But by the time Field Marshal Rommel, commandeered the Afrika Korps, the tank was a formidable weapon.

He used to have a very simple technique of taking two formations of tanks and converging upon the enemy, which he called a pincer formation. Lo and behold, this is nothing but your triangle, which is a stock price pattern or a commodity price pattern, which we use in technical analysis.

Or for example, air aces of the Second World War like Sailor Malan, Douglas Bader, Werner Moulders, Adolf Galland. These are airmen who had formulated their own strategies.

To the extent where Salem Allen's 10 Commandments of dawn fights or aerial warfare are still the gold standard that every trader must read.

I assure you it will make you a better trader to study warfare and techniques of soldiers, whether air, sea or land.

To that extent, if you start treating trading like warfare and think like a combatant, you will be better placed in the market to be able to take the other guy's money out of his pocket, using your trading terminal and putting it into your pocket.

Which is why I use the combative style of trading, which I talked about at the time of launching the Weekly Cash Alert service sometime last year. This is something that I thoroughly believe in. it is something that I would swear by. The more you learn about acts of combat, even unarmed combat, like martial arts or mixed martial arts, you will see that trading is deriving its essence or the underlying philosophy from combat.

Do not try to dilute the activity of trading by calling it a competitive sport that's too light a subject as compared to what trading is really what it's all about. Trading is warfare, subtle, passive, using a keyboard and mouse.

But like the gladiators of the olden era, it allows no mercy to the loser. In the olden days, the losing Gladiator was gored to death by the winner. His wife and family and material possessions were given to the winner as his prize money.

In modern, civilised society, a losing trader is not gored to death. But believe me, the wife and kids of a losing trader suffer the same amount of deprivation, financial hardship as the gladiator of the olden Roman Greek era.

Trading is a combat. Do not take it very lightly.

We are here at Equitymaster combat the markets and give you the finest of our distilled trades that we screen using our in house systems. Before I sign off from this video, let me remind you to click like on this button. If you're watching this video on YouTube in the comment section, please let me know what you think about this video and what other videos you would want me to shoot in the future.

Do not forget to share this video with your family and friends and spread the knowledge.

And please join Equitymaster's Telegram channel under the name of Equitymasterofficial, wherein I put my updates 24/7 along with other updates from Equitymaster. So I hope to see you there on Telegram.

This is Vijay Bhambwani signing off for now. Please do take very good care of your investments and trades.

Thank you.

Warm regards,

Vijay L Bhambwani
Vijay L Bhambwani
Editor, Fast Profits Daily
Equitymaster Agora Research Private Limited (Research Analyst)

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1 Responses to "Combative Trading: Revealing the Secret Behind My Trading Success"

sundaravaradan

Mar 5, 2020

I never had positioned myself as a person waging a war while trading. When I imagined that position, then my adrenaline is at a different level. Certainly you would be more cautious to survive and win and prevent money going to the other's pocket from you. Awesome analogy. Thanks Vijay

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