Why Small Investors Do Not Make Much Money In Market?

June 4, 2013

Why Small Investors Do Not Make Much Money In Market?

Many thanks for words of appreciations for last two of my emails - How to Make Tons of Money From Facebook/WhatsApp? and Mr.Nourial Roubini Says Gold Will Go To USD1000, What is our call? In fact, many friends have personally called up to congratulate us for above emails.

My Recent Experience with My Would Be Client:-

Reading my above mails a friend called up. Here is the talk we had….

Can you share some investment ideas?

I am used to such kind of requests. So, I asked :- Why Do You Want to Invest?.

He said:- Of course, I want to make money ! 

I asked – How much money you want to make?

He said:- Sky is the limit.

I asked – Why you want to make that much money?

He got little irritated with this question. However, keeping his cool, he asked me – Should I not make money, if I invest?

The talk went on for about 5 minutes. The end result was Zero.

In last 20 years, I had many such experiences and with this talk…my mind suddenly went on to think “why small investors do not make much money in stock market.” I could think of following main reasons…..you may add yours.

Missing WHY:- Why Do I want to invest?  If you can not prepare a list with at least 5 benefits of investments to you and your family, I think you just have an intention of investments but no clear purpose. Just see the following examples for clear cut purpose….

A. I want to invest so that….I can send my son to USA for Post 

Graduate Study.

B. I want to invest so that….I can give 1kg Gold to my daughter in her marriage.

C. I want to invest so that….I can send my parents on World Tour.

D. I want to invest so that…I can give 3ct solitaire diamond ring to my wife on her next birthday.

E. I want to invest so that…. I can buy Rolex Watch on my next birthday.

If you read above purposes….you will find following…..

1. We want to earn money…….but we have a clear purpose.

2. We know for what we want money.

3. The most important aspect in above is…..all of the above reasons are our WANTS and not NEEDS.

4. When you read these benefits everyday, you will not go to market to pass the time…..you will go to market with an inside flame to succeed. Your attitude will change from – “Not To Lose Money to Make Money.” 

5. Most important secret about WANT….. What we want is always within our control….you are in charge of your wants….you are in charge of intensity of your wants, you can turn the flame up or down at any time you want. It has nothing to do with the economy or market or any outside forces.

6. Just remember…..What Oxygen is to your Body…..Want is to your investment success.

Now Good News:-

If you have WANTS….a burning desire to make tons of money…..Market has the capacity to satisfy all your wants. If you need help with investment strategy in any market conditions, you can approach us. 

You can follow me @hiteshmparikh on twitter.

Live With Passion, Invest with Passion.

Hitesh Parikh.