Thread by @KatariyaPran

Had the privilege of listening to Javed Akhtar several times at the Jashn-e-Rehta festival. He was asked to comment on why the standards of Hindi Film Music and Lyrics had been on the decline over so many years. His answer was both thought provoking and worrying.

He said that it was not that the quality of music composers or writers had deteriorated. It was the standards and quality of the audiences that had declined and their inability to appreciate good music or good writing that was responsible for the poor fare that's being dished out

When I see the kind of posts or response to my tweets I can't help but think that the same has happened to Traders in recent times. A Trade is basically the expression of an idea executed thru a plan or strategy.

Managing the Trade in a dynamic market has to draw upon the original idea behind the Trade. Yet most just want to know what action will be taken under a set of circumstances without understanding the idea itself. This can be like going out fox hunting and encountering a tiger

Successful Trading is simple but not that easy. Based on what new Traders want, Trainers are coming out with ridiculous 'foolproof' and 'idiotproof' Strategies that require little or no thought or understanding. A lot of junk is being peddled in the name of 'Systems Trading'

Comparisons are drawn with the likes of Jim Simons without mentioning that the systems his team Trades require a bunch of the world's best mathematicians to design and maintain and require supercomputers to scan the Markets and execute the Trades

We are now in the era of the '9:20 Straddle Strategy' which are constantly attracting dumber and dumber Traders into the Market. Telegram groups which encourage new Traders to take Trades without even wanting to understand the logic are proliferating- and being lapped up

All this is bound to end badly and I anticipate a big shakeout in the near future. What we really need is a far tighter regulatory framework to be put in place. The new Margins are a small step in the right direction but much more is needed

Here is some regulation which I think would be good for Retail Traders. Anyone selling Training on a Mechanical System guaranteeing it makes money should be asked to provide evidence thru his own Trading as should anyone claiming to make a return above a threshold amount.

And I'm all for Successfull Traders doing other businesses- Training, Portfolio Management, YouTube etc. Why shouldn't they be allowed to leverage their success? It's just that the unscrupulous elements should be kept out of it.