Jun

6

Ta, Tha, Da, Dha, Na are the five alphabets in Hindi that according to old wisdom of the market around Dalal Street categorize the five types of winners that markets can produce. Each alphabet stands for a particular type of winner.

  1. Ta stands for Tarawaniwala – the jobber or the marketmaker. Trading the spread the marketmaker has the lowest vig to face. Needs no further elaboration.
  2. Tha stands for Thoda – the word thoda means less or frugal. The under-leveraged have a far higher chance of coming out winners in the long run. Survival is not endangerd during adverse incursions.
  3. Da stands for Dayalu – the word dayalu means the one who can take it easy. Easy on oneself, easy on others and benevolent in general. A worked up scarcity driven mind maketh a poor trader. Scarcity alone is not a sustainable driver of wealth since substitutions can and will occur. Abundance driven value creating minds produce wealth.
  4. Dha stands for Dhanwaan – the word dhanwaan means the one who has access to riches. A line of cash and /or a line of stock being available is a clear pre-requisite to surviving any sorts of squeezes. This adds up with point 2 above of being less than fully leveraged as well.
  5. Na – oh that’s a unique word in the markets. Na means no. The one who can say no to account debits and the one who does not pay up will not lose. Wonder if Worldcoms, Enrons, LTCMs are mere accidents on the streets of high-finance?! No, it is at least equally likely that there creators clearly knew that if you can amass so much risk within yourself as to be a black hole in the system, the house will come down to the point of re-calibrating the chips. Well at least the creators of the next such event would know it. By this extension the creators of all such previous events have known it, since ages.

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