“I have suffered huge losses in share market post Budget. Can you help me to cover that?”

25 June 2018

“I have suffered huge losses in share market post Budget. Can you help me to cover that?” 

Greetings from Hitesh! Seeing the condition of the midcaps and small caps shares, I keep on receiving such requests since last 2 months. Today I am dealing with them.

Most of the guys when they suffer losses in the market, they feel that market has taken away their money and they should get back the same from the market. So, they develop animosity towards the market and play with aggression only to lose more and more money. This is normal tendency of all normal investors. That’s why we have a saying in GUJARATI – HARYO JUGARI BAMNU RAME – losing gambler will go on doubling the bet. This ultimately wipes out the guy from all his resources.

Where is the market?

When you feel that market has taken your money, you must know where is the market? Is market in your trading terminal? Is market in on TV? Is market in on News Papers? Where is it? Market is in your MIND. Your deepest desires of GREED, FEAR and HOPE decides the market for you. If you are in GREED your market is on BUY SIDE while the guy who is in FEAR will be on SELL side. Effectively there is no permanent place like market. It’s all your own mind game.

Have you seen many guys after losing in the market – think they should have kept this money in BANK FD or they should have invested in GOLD or Real Estate. This is nothing, but MIND GAME and it leads to NOWHERE but increases the frustration and stress.

When market is a mind game, your decision to take revenge against market is also taking a revenge against yourself only. When you take revenge against yourself, naturally you will lose more!! It’s like slapping yourself. You will only get hurt.

To deal effectively, you must know what Market Promises?

1. It promises a playing field, not the game.

2. It promises to reward risk, not proportionately.

3. It promises opportunity, it does not promise profits.

4. It promises a lesson, not learning.

5. It promises that the quality of indicators and analysis is proportionate to quantity of participants, not quality.

So, what should you do?

Keep the above 5 factors in mind when you approach the market next time. Like football ground, it is giving you a playing field and not the GOAL. You will have to work hard to reach to the goal post and hit the goal.  It will reward all your risk but more risk may not mean more return or vice versa. It gives you an opportunity to create wealth, but it does not give you the guarantee. Loss is a lesson. Its up to you to make it a learning. The last one is the most beautiful of the all the 5 factors. Just because all EXPERTS are telling you market will go up or market can’t go down, market will not follow them!! Market has its own mood and it’s not going to listen to anyone. So, next time when all smart people given their opinion on one side, go against them.

How should you cover your losses NOW?

Take following simple steps and see the miracles in your life.

1. Know The Game: - Investing is the most difficult of game. Nowhere else does one begin a career by opposing the world’s most accomplished professionals. So, you need to master the rules of investing. This can be done by learning from people like Hitesh Parikh by paying small fees or paying to market with losses. If you have no patience and time to know the rules and practice them, you will not be successful. Normally, we request all our investor friends to be with us for 3 years to master the game.

2. Understand the Risk: - RISK is the possibility of loss. That is, if we own some stock, and there is a possibility of a price decline, we are at risk. The stock is not the risk, nor is the loss the risk. The possibility of loss is the risk. As long as we own the stock, we are at risk. The only way to control the risk is to buy or sell stock. In the matter of owning stocks, and aiming for profit, risk is fundamentally unavoidable and the best we can do is to manage the risk.

3. Explore the Opportunity: - Success is the point at which talent and skill meet opportunity. So, explore all the opportunities. Realize that not to invest is also an investment decision.

4. Make Learning A Habit: - Analyse your trades past 3 to 5 years, it will give you base for your learning. Ask yourself, Why did you do particular trade? Was it based on logic, facts or tips? If you continue to do what you have done in past 3 - 5 years, where will you be in next 5 years? This is most important for people investing in FREE TIPS. Frankly, those who operate on TIPS never make tons of money as they don’t have that kind of conviction on the TIP. So, they spread their RISK by investing their 10 lakhs in to 100 shares rather than well studied 10 stocks. Then they complain that they have never made big money in stocks.

Many guys have come to market post 2009 and they have seen one side TEJI in market in last 9-10 years. For them this is most shocking time.

5. Follow the Indicators: - The market tells the truth, but often there is a lie buried in the human interpretations. Surrender to the truth and not to your opinions. If you follow what I have said, I am sure you will have a solid foundation to recover your losses and create a fresh wealth.

For personal training in investments, I suggest you can approach us for details.

Have a Happy Week Ahead.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.