DEALING WITH THE ‘DOOSRA’
Or, why Everyone has to be businessmen here.
The ‘doosra’ is a reasonably well known bowling trick in cricket and some of our spinners are rather adept at this small sleight of hand that often mesmerizes batsmen into committing mistakes. Every now and then, the market will also develop a ‘doosra’ and bowl every trader out! This was recently in exhibition. After a rather super time in September- where we all began to think we were super analysts or super traders- the market decided that it was time to teach everyone just who the boss is. Along came October and the market has been delivering one curve ball after another. This is not only in Nifty but also in stock futures, commodities as well as currencies! So, really, there wasn’t a place to hide!
At such times most traders turn around and blame whoever they can find in front of them! Inconveniently, one of the persons always found in front of any trader is either the broker or the advisor. Now, broker stories are a dime a dozen so we shall not go into those. But investment or trading advisors are of more recent origins in India and since, at the end of the day, you do need your damn broker to execute thru (and therefore there is only so many gaalis that you can heap on him!), the poor trading advisor is quite another. This is a more dispensable professional, is what most traders think. It’s almost like if they have paid for a service, then the advisor is duty bound to give them profits every single day, week and month!
Of course, we all know that such a thing is not even remotely possible. Even the traders realize that but frustration has to be vented somewhere, after all. Advisors by now understand that too. Or should. The unfortunate truth of this business is that the advisor is only as good as his last call. It doesn’t matter how well he may have done in the past but a few bad calls and his entire work gets chucked down the drain. This shall forever remain the bane of the advisory business and has to be accepted to be so by those who play it. But the traders also need to know that most advisors (which, incidentally, is one of the hats that I do wear) are also human. They are also business men and are as interested in seeing that their clients make money. After all, it is a symbiotic relationship between the two. It is the dharma of the advisor to make money for his client.
But just as in life, there shall always be periodic phases of lesser performances. The good advisory service will always recoup quickly and gain control on the matter. At Growth Avenues, we also have been reeling under the choppiness of this market and our clients have suffered as have we with our own Prop accounts. But these phases need to be endured a bit stoically and it shall also pass. Good services spring back into action soon as the market rights itself. All we got to do is keep the faith and wait for the market to pull out of its choppiness. It’s like a plane hitting an air pocket- for a brief while, the plane is out of control. Then the experience of the pilot will ensure that all is well. Traders, have patience. With yourself; with the market; with your advisor; and finally, with your broker. We are all in this together.