Bhagavad Geeta & Trading

"That's an odd pairing" might be your first thought - after all what does Bhagavad Geeta have to do with trading?!

Well, whether or not most traders in India have ever read the Bhagavad Geeta, I am willing to bet a fair amount of money, that most of them will have heard this particular shloka (or rather half the shloka) from the Bhagavad Geeta - 

"Karmanevadhikaraste Maphaleshukadachana"

Most would also loosely know its meaning as "put your focus on the karma, not on the result" though the more correct translation is "your right is only over the karma, the action, but never over the result".

So why am I quoting the holy & spiritual Bhavagad Geeta in relation to trading, which is a purely worldly pursuit? Because interestingly, in no other endeavour in life does this shloka resonate more than in trading!

In trading, do you control the result of your efforts? No! The only thing you control in trading is your process, not the trading outcome. The markets by their very nature are random, and so the results of your trading are never entirely in your control.

But it is not merely to draw some academic simile or an interesting comparison between the Bhagavad Geeta and trading that I have quoted the shloka. The shloka is quite literally the guiding path to success in trading (provided you put in the right kind of effort).

For most of us, it is the lure of big money that brings us to trading - nothing wrong with that. The problem starts when our focus is solely on the result or outcome of a trade instead of the process, the effort, the "karma".

Constantly watching the MTM (current unrealised profit or loss) while the trade is live, is what triggers the unwarranted emotions - and the costly mistakes in response to those emotions - whether it is misreading market information or trading on impulse. Even outside market hours, making your trading decisions only on profits and losses tantamounts to the same thing (technically called "trading your account").

Instead, if, as Lord Krishna guides in this shloka, we focus on trading right, then the desired “karma phala” (trading profit), will eventually come.

Now Lord Krishna's guidance doesn't end here because He knows all about human thinking (& its frailities). And so in the same shloka He adds -

"Makarmaphalaheturbhuhu Matesangostuakarmani"

This translates into - “Don't be attached to the fruits of your action but at the same time, do not be attached to inaction”.

Lord Krisha is well aware of the frailities of the human mind and knows that the moment He says the fruits of your labor are not in your control (& not guaranteed), many will simply resort to complete inaction! So He upfront takes care to prevent any such flawed interpretation.

For us as traders, "inaction" translates into not taking any trade in order to avoid losses or quitting trading altogether given that the outcome of our efforts are anyway not guaranteed. But as the popular quote goes - "If you don't buy a lottery ticket, you can't win the jackpot!".

So if you believe your trading strategy is sound and aligned with your goals, keep trading — but let the timeless wisdom of the Bhagavad Geeta guide your mindset. It may not guarantee success, but it will most certainly increase your probability of success.

Good luck, and may your karma bear the desired fruit.