How to Practically Attract Luck in Finances

Since our childhood, we are told to work hard to achieve big in later parts of life.. but we were also told the time and luck plays important role.. what we were never told is how to attract luck.

Limiting the topic to finances, I strongly believe we can actually almost create our own luck

Understanding Luck in Practical Sense 

Let me share you a real story

I am lucky enough to come across lottery business in my early teenage, The Business works like this- basically we were sold lottery for very high margin, we should sell them to the customers..  

This Business basically depends on probability- say there are 20 tickets and one of the ticket gets the lottery- so there's 5% probability to win, if you happen to purchase 10 tickets, there's 50% probability you'll win the lottery, but of course, more you increase the probability, more is your loss if you happen to not win and after a certain limit, you'll be in loss even after you win.

There was a catch there- as a seller, we were told that if we failed to sell all the tickets and one of the unsold tickets happens to give the lottery amount, we can claim the ticket to our personal ticket. About 5-10% of the tickets were unsold on daily levels, so everyday we had 5-10% chances to win the lottery, when none of the unsold tickets happens to give the lottery, we'll send the tickets back to the issuer.

So technically we were lucky, but you can observe the practical reason in it.

Give Luck the chances to come to you 

In the above case, consider we used to not sell 5-10% of tickets, we might be losing on the commission we get from selling , but we are increasing the chances to win the lottery, even if we win lottery once in a month, its much better than commission we receive from selling those tickets

More routes you give luck to come to you, more is the probability you get lucky

Basically there are 2 kinds of luck generation

a) Return Diluter

b) Probability Maximizer

Let's take example of stock markets, you can increase your chances of luck 

1) Return Diluter: By investing in good number of quality stocks- One of them happens to be Multibagger while rest gives average returns, if you're betting on very few stocks, unless you're sure you might be reducing your chances of earning better returns

This belongs to return diluter, as after certain point, more you diversify your stock, lesser is the returns even if one becomes a Multibagger

2) Probability Maximizer: Opening accounts in multiple trading platforms

One key strategy for IPO is to open Demat accounts in multiple platforms and bid through each platform, thereby you're increasing your chances to win the stocks at Auction price by  4-10x( depending on number of platform you've chosen)

This belongs to probability maximizer- as this only increases the probability to get lucky with minimum down sides (this case, paying platform fees for all the platforms)

This Explains the luck behind few most successful people