“I Understand your strategy of investing now when prices are low, but I am unable to follow -why?”

18^th March 2020

“I Understand your strategy of investing now when prices are low, but I am unable to follow -why?”

Dear Fellow Travellers,

Greetings from Hitesh! I keep on getting many questions from readers from time to time. The above is one such question and since it is related to the current market situation, we will deal with that. The full question is as under –

“I Understand your strategy of investing now when prices are low, but I am unable to follow -why? Later on, when prices go up – which is bound to happen – I feel guilty of not taking advantage of the opportunity. Looking at my long track record of missed opportunities, I feel, I am not lucky for the share market. What should I do?”

This gentleman is my long-time reader and I like his HONESTY in sharing his question with me. I can deal with this question from various perspectives but I will take the root first.

Operation out of EGO: -

Whatever we do is to add to the ego / boost the ego or prove the ego. As a parent, you motivate your kids to come first in their studies. If your kid comes first in 10^th or 12^th – you will feel that you are GREAT by producing such a kid!! When the same kid goes into the MARRIAGE Market – you want to select the most beautiful bride for your son. This will also add to the ego of having a beautiful BAHU in the house. You spend all the money on MARRIAGE and FOOD – to show the society that you are something. It is difficult to do anything without EGO for all of us.

Ego means you are the BEST. You can’t go wrong. You are the smartest. Your decisions are always the best. So, when you come to share market – you want to buy shares at the BEST prices. Hidden expectations of BEST prices are – once you buy – share prices must move up. If it goes down – you are PROVEN WRONG. This hurts the ego. So, when the market is going down most investors sit on the fence and do not buy as they don’t want to be proven wrong.

When the market moves up, they all buy because the next day / next week / next month – the prices will be up and it will add to their EGO.  

Let me go back to the question now: -

Now, read the question again. The reader says – HE UNDERSTANDS. Thanks to GOOGLE, you will find that all information is available on your fingertips. By reading such information the person gets an illusion that he understands. But information is not equal to understanding.

Understanding is a function of experience. It can’t happen without your experience. That’s why we have a proverb in India – “If you want to go to heaven, you must die”. You can’t have an experience of heaven when somebody dies.

Experience comes when you take two important steps – EXPLORE and DOUBT. This was explained in detail on our 6^th March blog - Two most important steps each investor should take... https://bestofhiteshparikh.blogspot.com/2020/03/two-most-important-steps-each-investor.html?spref=tw…

Another aspect of understanding is EDUCATION. Normal investors are not trained for investments. They don’t know the valuation system in stocks. Since they don’t know the value of the stocks they are planning to buy or hold – they judge the performance of the stocks with the price only and price is a mechanism of MOOD / EMOTIONS. If the price moves up – they assume shares are good and vice versa.

So, if you really want to understand – you must understand yourself first – your ego. Next comes the willingness to pass through the experience with proper educations. Since the normal guy is not ready to take this much pain – he concludes as follows – “Looking at my long track record of missed opportunities, I feel, I am not lucky for share market."  

Now, let us deal with the last part  - WHAT SHOULD I DO?

You can follow BUDDHA’s technique of investing in SHUBH muhurat. Now, you know about shubh muhurat. Normal guys follow MUHURAT in marriage or any auspicious events in his life. We have MUHURAT TRADING in the stock market. So, Muhurat is very important. But our meaning of MUHURAT is 100% wrong.

Shubh Muhurat according to BUDDHA is a fraction of time between two moments. It is so small that you can’t catch it with your mind. In other word – become FREE OF MIND and invest. When your mind is not there – you have no EGO. When you have no EGO, profit and loss do not matter. Your focus is on doing your karma in the best possible way.

Lord Krishna says the same thing differently in GITA chapter 2 slok 38.

सुखदु:खे समे कृत्वा लाभालाभौ जयाजयौ |
ततो युद्धाय युज्यस्व नैवं पापमवाप्स्यसि || 38||

Fight for the sake of duty, treating alike happiness and distress, loss and gain, victory and defeat. Fulfilling your responsibility in this way, you will never incur sin.

What NEXT?

We know ourselves with the opinion of others about us. In fact, our name is also given to us by others. Go deeper into your being and I assure you, the more you understand your real self, you will have the sensibility to take the right decision automatically.

There is an easy way to understand yourself also – get your horoscope read with learned astrologer. He will tell you – what you are and what you can do about it. If you wish, you can take our help in understanding yourself in a better way.

Have a HAPPY INVESTING.

Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.

Live With Passion…Invest With Passion.

HITESH PARIKH,

YOUR PERSONAL DESTINY MANAGER.