trading lessons from Everest

day before yesterday, on 29th, was the 60th anniversary of the conquering of the Mt.Everest

summit by Edmund Hillary and Tenzin Norgay in 1953.

it was a sheer coincidence that i was reading a book by arjun bajpai (world's youngest non-

sherpa to climb everest) since last few weeks and ended it around midnight (00:03hours) on

29th may. i never knew that everest was conquered on 29th may till i read it in th elast pages

of arjun's book "on top of the world".

all these weeks i felt as if i too were climbing world's highest mountain alongwith arjun. so

excited was i that i just couldn't come off the submit once the book was out.

i wanted more of everest. i wanted to know more.....experience it more. i checked for books on

everest and found one "into thin air" by Jon Krakauer. i downloaded it, read it. then i

downloaded and watched the movie adaptation of this best seller book.

still thirsty, i downloaded and watched 2 BBC documentaries on everest.

by now, i knew the route to the summit by heart, the heights, the camps, the rules, the

tragedies, the risks, the weather.......and a lot more. though i may not be able to attempt a

climb everest for many reasons, i have somehow felt as if i have climbed top it a few times

already, on the back of those climbers.......and died a few times along with those who choked,

fell and got buried on the way up or down.....

i can go on and on but that some other day.

today i want to register / pen down (rather key down) certain lessons which i learnt while

virtually climbing mt.everest. having been climbing trading mountain (arguably higher than the

everest, and certainly no less treachorous) for so many years, it suddenly struct me that

many, if not all, rules of mountaineering on everest were astonishingly applicable to trading

as well. why not recognize them....and record them?

now here are those rules. there may be many more (which i will keep adding as and when i

receive them). one more thing, i have deliverately kept the rules short and terse, with

minimum explanation. mainly because of two reasons : one - to stimulate you to go climb or

read or watch about everest for yourself ( i want you to google and learn more), two - i am

plain lazy. all i am doing it writing the everest rule followed by trading adaptation comment.

so, here are the rules:


* acclimatize : go slow, adapt, acclimatize.....or get killed.
= every new trader wants to conquer the trading summit without acclimatizing to the altitude,

the oxygen, the body metabolism.....getting altitude sick and dying

* first learn the basic mountaineering, the rock climbing, the tools, the gear.....
= no alternative to this in trading as well.....basic technical skills and awareness is a must

* study, read, learn, hear, watch a lot about the mission before going there
= know what to expect. be mentally ready.

* try lower hills first.
= paper trade, mini-trades....

* climbing everest is not a passtime...not a picnic
= same about trading. trading is not an escape haven where you go and seek shelter from life's

other losses and rejections.

* fix the logistics
= and the computers, the internet connections, the demat accounts etc.

* fix your turn-around time before you start. better return alive to attempt the summit

another day (final summit push, beyond camp 4, is started by the climbers around midnight so

that they reach summit before noon and return before it turns hot, avalanche-prone, or before

the weather turns have to return to the highest camp, below the "death zone" under

8000m before it turns dark. if you are not at the summit by 1 pm, it is time to turn back,

come what may.)
= if trade is not going your way, turn around.

* don't force the climb
= the market won't be tradeable just because you are there ready with your climbing gear.

* beware of the avalanches
= aplenty in the market. know how to get out of the way.....or take advantage

* beware of the crevasses
= pitfalls, traps of trading.....they are always there, often covered.learn to spot them.

* use ropes, and hooks....
= and stop losses

* don't move out without checking the weather report
= macros

* wait for the window of opportunity....stay put till then.
= 90% trading chance will come in 10% time.

* improvise when stuck
= once your sub-conscious is attuned, it can advise you when u r stuck/

* never mind the coughs
= fluctuations are normal....including a few ribs crackings.

* mind your self talk
= no negative fool hardy. "any sufficiently determined idiot can reach the

summit...the trick is to get down alive"

* every climb is a different one
= overconfidence kills. good traders avoid reputations.

* respect the mountain (god). (everest decides who climbs it)
= market decides who makes the money.

* love the mountain
= love the market

* never under-estimate the mountain forces
= just because you have been spared doesn't mean you can bet it all.

* pray
= pray

* be lucky
= be lucky

* remember
= be thankful

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