How to Set Investment Returns Goal in Current Time?

April 16, 2014

How to Set Investment Returns Goal in Current Time?

Wish you great evening. It is very normal for an investor to ask for an approximate return while they do investments in stocks. Their calculation is simple……if bank fixed deposits are giving them 9-10% per annum, they will be happy to invest if they are reasonably assured 15-20% or more.   

Traditional Way To Set The Investment Return Goal:-

The experts have a tendency to give you formula for everything. They believe and try hard to make you believe that they have the correct formula and if you follow, you can also make money in tons. What is their formula? Just see as given below.

1.     Set A SMART Goal. (SMART stands for Specific / Mesurable/ Achievable/Resource Planning and Time Bound.

2.     Prepare a plan. Write Down the steps you will take /People and other resources you will need /Obstacles you will face/Write down possible solutions for each of the obstacle.

3.     They assure you that if you follow whatever they have said above……you will achieve your Goals.

All the management consultants and motivational speakers have achieved their financial goals by talking this to you.

Let me share a practical example with you.

You go to bed setting an alarm for 5am. At 5am, alarm rings. You stop it and say to yourself….let me sleep for today!! I will get up from tomorrow. You get up at 7am. At 9am, since you are getting late and you are feeling stress, you curse yourself….you should have got up at 5am!!

Same Person – Multiple Minds:-

In the above example, you are the same. But at night your mind thought you must get up at 5am. At 5am another mind told you…Its okay. You can sleep little more. At 9am, you are getting late and your mind is cursing you for not getting up at 5am!! Again you decide to get up at 5am from next day!!

Just see at least 4 minds played their role in the above example but you are the same!!

So, what is our approach?

If an individual mind is so much complex……you are dealing with Market – Mind of lacs of people……more over the market is also affected by events all over the world !! If you combined these two, you will see that expert’s approach will not work. You need some better way.

We suggest Constant and Never Ending Improvements in the way you do your investments. Take small step at a time……go to next step…then go to next step……slowly and gradually you build. No Planning. When you build up one over the other……you will adapt to the situations prevailing at that time!! So no need of wasting time in forecasting your obstacles and their solutions (How can you predict Ukrain kind of event? If at all you predict….what is the solution you have?)

We have always maintained that it is futile to argue with the market. You just have to adapt to it. When you adapt, you will not book much losses when market goes against you……and you will make handsome gain when market goes with you.

The best example of Adaptation is given in Hindi Movie Safar……

Jo tumko ho pasand wahee baat karenge

Tum din ko agar raat kaho raat kahenge

So, just adapt to the market. It will take care of you.

Have A Great Investing Ahead.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.