Trading Lessons to Learn from Lord Shri Krishna


Trading Lessons to Learn from Lord Shri Krishna
A happy and prosperous Janmashtami to all the traders and aspiring ones!

As we all know, Lord Krishna was the number one strategist as he played a key role in the epic Mahabharata. Lord Krishna is popularly known for his naughty yet sweet behavior. He is popular in Mahabharata for keeping the sunset on hold, which he did not instead, he just covered the sun with clouds just before the sunset. So that Kauravas do not get an idea about the exact timing of the sunset. It is a type of hedging done by Lord Krishna with the help of clouds. As he knew that he is running out of time. Even if time has run out, Lord Krishna became successful in hedging. Pandavas had won the battle of Mahabharata because they had the guidance of the number one strategist Lord Krishna. Lessons by Lord Krishna helped Pandavas to win the toughest battle like Mahabharat. Then why can’t we implement his teachings to tackle the everyday battle of BULL and BEAR?


Many peoples spend years in trading but don’t know the core behind each trading decision of successful traders. Traders who implemented delta trading in their strategies have become successful in less time. By going through this blog you will get the guidance to deal with the war of bull and bear markets. In this blog, we have discussed the most important trading lessons and trading strategies inspired by lord Krishna which are going to be very helpful to you in your trading career.


On this holy occasion of Janmashtami, let us discuss the strategies taught by lord Krishna which you can implement for your day-to-day battle of trading.


Keep an Eye upon the Change (Delta)

As Lord Krishna had his eye upon sunset, traders should keep their eye on the Delta. Delta is one of the four Options Greeks. The Options Greek helps us understand how our option positions will perform relative to changes in specific things in the environment. The Options Greek Delta is the directional risk measurement of an option. It tells us how much an options price may change relative to a change in the stock price. More specifically, an options Delta tells us the expected price change relative to a one-dollar movement in the stock price.


Teach Your Mind

As Lord Krishna said to Arjun, "Everything is possible if your mind assumes the same! You can see my existence only through your subconscious mind." In the same way, teach your mind to set high goals and predict future market moves.


Grab the Knowledge as much as you can

Even if Krishna was a God, he never stopped learning and told Arjun to do the same thing. Therefore as a trader, you should learn better strategies and ways of trading, such as delta trading, to earn profit and minimize losses. Always keep watch on the news and current events in the world to make good trading decisions.


Think First, Act Later

Whenever Arjun was about to lose hope out of frustration and make unfavorable decisions, Krishna guided him to think twice.When it comes to volatile market conditions, making decisions in such a panicked situation can lead to unwarranted trouble. Therefore think peacefully, clear your mind and then take a call. The market may be going through a rough phase, but that does not mean you end up making decisions without a rational thought process. Understand the reasons for market fluctuations, have relevant research to back your understanding, and make your investment decisions accordingly.


Find Ways through the Problem

The decreasing price of the market can be very stressful to many traders. But as Shree Krishna has always found ways to tackle the obstacles created by Kansa, you should plan your investment so that even in the falling market your stock will perform well.


Avoid undue Risks as far as possible

As Lord Krishna is very well aware of the power of KARNA he advised ARJUNA not to mess with KARNA directly. Instead, he made KARNA unmask his KAVACH and after that only he allowed ARJUNA to get in the way of KARNA. Investment strategies are no different. It is important to avoid excessive risks and expose your portfolio to volatility. For example, small caps have the potential to deliver superior returns whereas large or mid-cap not. Even mid and large caps are riskier. You should invest in them only if you can bear losses. Else, it is in your best interest to avoid them. Also, when you are set to accomplish a goal, capital protection rather than appreciation should be the aim.

Cut Emotions out of Investment

When Arjun was trapped by his brotherly emotions towards Kauravas, Lord Krishna advised him that don’t let your emotions take over your strategic mind. Share market is the place where it is required to have strong control over emotions. Otherwise, emotion will take you towards loss. Many times this happens that you gain a fair profit but then your thirst for more profit will make you invest more and more and take more risk even if the market is not in a good state. In the end, these emotions may land you in the loss-making position. Therefore think with a calm mind gain clarity on any situation with a clear, and composed mind. Don’t let the huge loss lose your hope. Treat the money lost in the market as the tuition fees and start learning and adapting to the change. Remember, money lost today can get multiplied in the future if you make the correct investment decisions.


Change Strategy, if required

An incident from the Mahabharta was when Yudhisthira, the eldest Pandavas, spoke half-truth of Ashwathama’s death that led Dronacharya to give up his arms and subsequently led to his downfall. It was Krishna who originally plotted this. Though Krishna always advocated the path of truth, he changed his strategy on this occasion. You should follow a similar approach while trading. For example, it makes little sense to remain invested in instruments offering assured returns that are hardly inflation-beating, when saving for a long-term goal. Also, when you are nearing a goal, it will be a wise decision to shift your investments from equities to debt to prevent unfavorable situations due to market swings.

From the above discussion, we are now sure that the strategies applied by Lord Krishna in the Mahabharata are not only helpful to tackle the problems of day-to-day life but also are very helpful in the stock market. By implementing these lessons and strategies, you can become a master of the stock market. These lessons will help you to be in command of your finances and achieve your big goals. So on this holy occasion let us make a resolution to implement the teachings of Lord Krishna into trading and to become a successful trader!

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