“Volatile Market Makes me FEARFULL and 100% of the time I end up booking losses.” What Should I do?

May 19, 2019

 

“Volatile Market Makes me FEARFULL and 100% of the time I end up booking losses.” What Should I do?

Dear Fellow Travellers,

Greetings from Hitesh! Hope you had a great week. Our stocks are doing great in this market and all our investors who followed us are happy. I keep on getting feedback on real trading issues of my clients and my readers. They keep on sharing their real-life trading issues with me. Last week I got the above question from one of my followers.  Today I will deal with the same in my own style. It’s my assurance that if you understand science as shared below, you will never have fear from losses or death.

Belief V/s. Disbelief:-

Belief stands for VISHWAS. Oxford Dictionary defines Belief as an acceptance that something exists or is true, especially one without proof.

Read this definition carefully. You are accepting something without proof!! In other words – Belief is given to you from outside!!

Disbelief stands for AVISHWAS. Oxford Dictionary defines Disbelief as inability or refusal to accept that something is true or real.

E.g. If you believe - there is a GOD and somebody says - there is nothing like GOD. One is belief and other is disbelief. But both are beliefs and both are accepted without proof!!

The interesting RULE of BELIEF says: - You believe only and only when you can’t afford to disbelieve.

E.g. suppose you have to undergo an Open-Heart Surgery – you must believe in DOCTOR and his expertise on the face value – otherwise, you will find it difficult to undergo surgery under him.

The same doctor will give you some cost of operation before doing it. Now, once the operation is over, he may say that he expected 3 blockages but he had to use 5 stents. Now, you will start doubting that he has taken extra money for 2 stents.

Let us take a simple example of Catching a CAB/AUTO. You have to believe that this guy is a nice guy /he knows driving and he will make you reach your destination. Am I right? But if that guy takes some other way, immediately you will start doubting him.

So, the point is – Whenever you said I believe – you have disbelief inside!!

  

How this behaviour Impacts Your Investments?

Let me share some of the examples.

1.  Many times, investors buy shares believing in media/Believing in their own research/ Believing in some big investor’s positions/Believing in some expected news – when their purchased shares do not move as per their expectations – they start doubting the news/themselves/media guys etc. So, Belief was part of Disbelief only. When they are in a state of doubt – fear grips during volatility and they end up making losses.

2.  Since they are buying as per belief (with equal disbelief inside their heart), they do not have inner conviction to hold their positions under volatility. They end up making losses.

3.  It is very common to find a normal investor buying a flat worth of crores in Mumbai but they will never buy a share’s worth of crores. They do this because they lack the conviction needed for buying shares.

4.  I have been telling you about the coming bull run in the market since 2009 and I see very few investors have acted upon my advice – Why? – because they had disbelief in the market as such!! Sensex has moved up from 9000 to 40000 levels. Those who followed and stayed invested made tons of money.

5.  Normal guy will a take loan to buy Scooter/car/ mobile/ house/honeymoon and each and everything on which they can get a loan – but very few normal guys take a loan to buy shares!! Again because of Disbelief in their heart.

6.  Normal investors will do heavy diversifications – in the investment as low as Rs.5 lakh – I have seen 50-75 companies in their portfolio – reason internal disbelief in the market.

7.  Height comes when after appointing a consultant – they will not follow his advice!!

All these behaviours lead to the loss of opportunities of lifetime and waste of resources!! Then they blame their luck – market, etc.

TRUST can show you a Way

Trust is SHRADDHA. Trust is a situation of absolute faith for the event/person or on the institution. It is an inside feeling.

Most persons think that they can start with a belief and they can reach to TRUST. This never happens. As long as you have belief outside – you can’t have TRUST inside you!

E.g. Most People talk about – “ATMA AMAR HEY” – (Soul is immortal) – then also they are not at peace at the time of death!! This is because – it was their borrowed idea from scriptures and not SHRADDHA!!

Many guys ask me for a TRIAL before they join me – so that they can have some BELIEF in our expertise. Our experiences show that, these kinds of investors do not play long in the market.

As explained above – you believe only and only because you can’t afford to disbelieve!!

How TRUST Comes?

It can’t come as long as you have belief or disbelief. When you have a belief – the other side of the coin is disbelief.

It can only and only come – when you do not have Disbelief. When you are free with inner doubts – what remains is pure trust. Just think on this line.

Trust comes when you realize the TRUTH (By reading scriptures and listening to BABA, you can never realize the truth!! Same way by listening to MEDIA guys, you will never have trust in the companies you are investing based on their recommendations).

How Trust impacts your performance?

Time and again WARREN BUFFETT has said – “I am not right because market agrees with me and not wrong because market disagrees with me. I am right because – MY ANALYSIS and LOGIC TELLS ME SO!!”

This is TRUST. It has nothing to do with the outside events. He is 100% at peace, whether share prices go up or down after his purchase!! How many people can say –“I do not care if the market closes down for 10 years – after my purchase.”?

He buys shares worth of billions. He buys the total company!! He does not have a portfolio of Shares + Gold + Property + Bank FDS + Government Bonds + Insurance Policies + Retirement Plans. He just has Shared!! That is TRUST!!

What Lord Krishna Said?

In Bhagwat Geeta Chapter 3, verse 31, Lord Krishna had said

ye me matamidam nityamanutishthanti maanavaaha |
shradha vavanto nasooyanto muchyante tepi karmabhih || 31 ||

Those who always execute this teaching of mine, with TRUST and without objection, they too are freed from all actions. (Just see the word used is SHRADDHA VANT – PERSON WITH TRUST and not with Belief!!)

Since Mr.Buffett is acting with TRUST – GOD is taking care of his ACTIONS.

My Personal Call: -

I am nowhere near to Mr.Buffett or Lord Krishna. But whenever, I have given a call about the market or advised my clients or written any email – it was done out of 100% Trust.

(I did not worry about the market experts who had no vision and guts to talk about what I could see!! I was the first guy to talk about 35000-45000 Sensex way back in 2009-2011).

In June -2014, I have given the call about coming Third World War!! This can be done out of TRUST and only TRUST.

We know Transparency and Track Record can help you realize the TRUTH. And when you realize the TRUTH – TRUST will come automatically!!

If you read our posts with an open mind – you will see the TRUTH of our TRACK RECORD and TRANSPARENT DEALINGS. Once you realised the TRUTH, TRUST will follow.

What about FEAR?

Full form of FEAR is – FALLS EVIDENCE APPEARING REAL. The only way to deal with FEAR is TRUST in your investments. Trust can only come when you know the TRUTH. TRUTH is PRICE is a SLAVE of BUSINESS PERFORMANCE. So, as long as the business is performing don’t worry about price moving on either side.

Destiny Management is built on TRUST and only TRUST. If you want to achieve big in life, then you must have a TRUSTED partner. If you like our way of working – you ware most welcome to join us.

Do write to us. 

Have a GREAT SUNDAY.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.