The Giant and the Underdog

Have you noticed one thing? I have stopped rejoicing an Australian defeat in cricket. I remember the pleasure I got when the English team defeated the Australians in the famous 2005 Ashes series in England. I remember some of the one off Australian defeats in Australia like the defeat against India in Perth or the defeat in Adelaide in an earlier tour. But now it gives me no joy to hear of an Australian defeat. Clearly, what was earlier an one off event is becoming more regular now and therefore being subject to the omnipresent law of diminishing returns. All great teams go through phases like this and Australia is no exception. Currently there is no one team that is dominating this game and therefore none to really look forward to beating. I guess it makes the game less interesting if there is no giant to beat and consequently no underdog to cheer. It is always cathartic to see an underdog win and I feel that the lack of a clear giant takes away that something extra from any sport.

Now let me tell you that in this sport of trading, there is not just one but many giants. These giants range from the large MFs in India to the large long only funds handling billions of dollars and pension/insurance funds. I clearly am the underdog. You know, sitting in a small broking company in Mumbai, taking small positions in the Nifty in a world of giants with large positions that can move the market. Trading the Nifty where any politician anywhere in the world can make a statement that can change the direction of the market in a minute. A world where all asset classes have become so correlated that individual market characteristics have a small role to play in the direction of the asset.

Now you know who to root for and how to feel if I end up making money this year. This underdog is currently short on the Nifty. I will cut my short positions and go long only if Nifty crosses 4944.