How Investors Are Taken For A Ride?
Tuesday, October 04, 2011
Dear All,
How Investors Are Taken For A Ride?
Greetings from Hitesh! Thank you for being my regular reader and it is your faith in me that brings out the best in me.
I am sure each one of you must be aware about this famous story. The story reflects the current status of small investors.
Story goes like this……
Once a brahmin was bringing a cow to his home. On the way, three rogues saw the brahmin bringing the cow. They wanted to cheat the brahmin so that they could take away the cow. They hatched a plan.
The first person approached the brahmin and said, "Are you a washerman that you're pulling a donkey." The brahmin was annoyed at being mistaken for a washerman.
He went on. A little later he was met by the second of the three. The second person asked him why being a brahmin he needed to pull a pig. Now the brahmin was confused but he went on.
Some distance later he was met by the third person who asked him why he was pulling along a wild animal.
Now the brahmin was totally confused and also afraid. He thought that it was a devil animal which took different forms. He ran away leaving the cow behind. The three tricksters laughed at the brahmin at having obtained the cow from the brahmin.
How does this story reflect the status of Small Investors?
On the way to investments, small investors approaches (Yes they approaches !! ) three agencies.
1. Media Analysts. This is the most important source of information before they invest. However, they get confused when they listen/read opposite view for a particular stock or market. The best thing they do is to Sell the shares they have (leaving the Cow). Their solace is that the advice was free (Some rich fellow donated the cow to Brahmin !!)
2. Brokerages reports. Another important source which adds to more confusions with their terminology. The reports have title like Reduce / Accumulate / Add / Neutral / Positive / Average / Market Performer / Under Performer. What small investor wants to know is just Buy or Sell?
3. Economic Data:- Various agencies regularly comes out with data related to economy, inflation, exports, GDP, tax collection, etc. More data leads to more confusion. Like Brahmin, small investor wonders…whether he should have invested in shares at all.
How to Come Out of This?
All our emails are written with one simple motive…..is to educate the readers. We believe that education is the only way you can deal with all of the above.
Normal Investors Attitude toward Education:-
He spends 13-15 years of his life before he starts his career. He spends lakhs of rupees for private tuitions so that he can get good grades in 10th / 12th / Entrance and Degree exams.
However, when he comes to investments…..he forgets how he became Graduate, Post Graduate, Doctor, Lawyer or CA?
You need to have an attitude of a student to become a successful investor…..all successful investors are life time students!! Do you agree with me?
What Next?
If you believe that your educations must earn money from day one…. I have following options for you. Just enroll and mint money from day one.
For Traders:-
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For Investors:-
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2. Wealth Creations Stocks…buy them when nobody is touching them…these stocks will give 300-1000% return in 5-7 years time. Many of them have already touched 100% plus during last year only.
For Aspiring Investors:-
1. Join our personalized online course on “How to Invest?”. In this course, we teach you how to invest in general and how to invest in your own situations in particular.
Special Navaratri Offer:-
During 9 days of Navaratri, we are offering discounts from 20% to 50% in the above offers. The offer ends on 7th Oct., 2011. So, hurry up and write to me with the options you want to go for. Last Three days to go……
Thanks for reading my email and await to hear from you.
Live With Passion…Invest With Passion.
Hitesh Parikh.
P.S:- Join us on Twitter@hiteshmparikh for investment updates.
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