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(Precious) Words of Wisdom : "Only those who are asleep make no mistakes." ~ Ingvar Kamprad

Are you driving your Maruti 800 on the F1 race track?

If you are trading in the Futures and Options (F&O) segment, you are driving your Maruti 800 on F1 race track. 

And given that the trading volume on the F&O exceeds Rs.1,00,000 crores every day — as compared to mere Rs.10,000 crores in the Delivery segment — I can safely presume that most people are indeed driving their Maruti 800s on the F1 race track.

Maruti 800 is small family car for daily use. F1 cars, on the other hand, are designed for high speeds. The two are incompatible.

Equity is a long-term product. F&O, on the other hand, is short-term in nature. The two are incompatible.


Winning F1 race with Maruti 800 is, of course, ruled out. Likewise, becoming rich using F&O is ruled out.

But I am not much concerned or worried about whether you will win or lose. No. That's your lookout.


No, my main worry is...CRASH.

What if your Maruti 800 crashes?

Given the speeds that you will drive at, crashes are inevitable. If not today, if not tomorrow, it will happen someday. 

And that would be a disaster... for you and your family. You would, of course, not survive. But, you can well imagine what your family will suffer. 

F1 cars are especially designed to protect against such crashes. So it is foolishness to compete with them.

What if the markets go volatile?

Given the speeds of trading, volatility is inevitable. If not today, if not tomorrow, it will happen someday. 

And that would be a disaster... for you and your family. Your capital would, of course, be wiped out. And you can well imagine what you and your family will suffer thereafter.

F&O is designed for experts. They know how to protect themselves. So it is foolishness to compete with them.

Weapons of Mass Destruction in the world of Finance... yes that's how Warren Buffett describes Futures and Options. And when the world's most successful investor says so, we better listen. 


Either train yourself to be a Formula 1 driver or be just a 'wise' spectator.

An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

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