Coming Market Fall and Investor’s Mindsets

 8^th September 2021

Coming Market Fall and Investor’s Mindsets

Dear Fellow Travelers,

Namaste! The market is at the top. Last May, we were among the few who talked about 12000 Nifty when everybody was talking about 5300 Nifty. The mindset changes fast and now people are seeing more and more teji. Last year investors were cursing for not selling stocks. This year they are cursing for not investing enough.

Have you observed this in your life?

While going to bed you decide to get up early and set an alarm for 5am. At 5am when the alarm rings – you say let me sleep for 5-10 minutes more. In sleeping for 5-10 minutes you get up at 7.30am. Now you start cursing yourself for getting up late.  You get ready in tension and decide that from tomorrow you will not repeat this mistake. But when the alarm rings at 5am the next day – you forget your decision and again decide to sleep for 5 -10 minutes more!! I am sure you would have observed this.

There are 5 persons involved in this event.

1.  One who decides to get up early and set an alarm.

2.  Who decides to sleep for 5- 10 minutes more.

3.  Who curses himself for not getting up as per the alarm.

4.  Who makes the decision not to repeat the mistake tomorrow.

5.  Who forgets everything the next day and decides to sleep for more time.

You always believed that you are one. But see there are 5 people involved in the above example.

Bhagwan Mahavir was the first one to talk about this.

He was the first to talk about the Polypsychic nature of the mind. His word was - BAHU CHITWAN.  He said there are MANY MINDS inside the human and not one mind.

He also said that at the same time many minds will be opposite of each other also. Say you want to eat sweet but you have diabetes and doctors have advised you to stay away from sweet. So, one mind will say – let me eat. The other mind will say – you can’t eat. This inside fight of the mind will result in mental confusion/guilt feelings and all kinds of mental illness.

What happens due to this?

Your energy, your intelligence, your efforts do not remain focused and get wasted in so many channels at the same time. When you are not ONE, you can’t take advantage of your unique skill sets / your knowledge, and opportunities.

How does this affect your investment performance?

Say you buy a share and it goes down. You feel you should not have bought at all.

Say you sell a share and it moves up. You feel you should have not sold that shares.

This is the constant struggle of normal people. Since they are operating with so many minds – the big sharks of the market will take them for a ride.

Say a trader has bought a stock for trading. He books a loss when stop-loss is hit. As soon as he books the loss, the stocks go up. So, he will get pissed off and decide not to keep the stop loss. So, the big shark – will sell the stock and the prices can go down by 10-20% fast. Now, our trader will become an investor in this stock. He will curse his luck.

The problem is not with the luck. The problem is with the focus and not following the discipline of trading.

How does this affect your Life?

Many guys make NEW YEAR resolutions and forget the next day. Many times, they get the idea that they are not living life the way they should have been living – but they forget the next day and get back to their routine. Sheer waste of GIFT called Life.

What is a Way Out?

1.  If you also have this nature – just observe it. Be present to it. Do not try to justify or rationalize the same. If you justify – you will go into the consolation business!! Away from TRUTH.

2.  Feel the pain of losing the opportunity. If possible, quantify your loss for not acting in a way you decided to act.

3.  If you keep on missing the opportunities like you have missed in 2009/2011/2013/2014/2017/2020 – what is the opportunity cost for such mistakes? Quantify the opportunity loss also. Write down all the losses on Paper and ask yourself – will life be kind enough to give you the opportunities again?

If you take just three steps with 100% honesty to yourself – you will get acceptance of your mistakes and you will never repeat the same!! That’s my assurance.

What’s my call?

At the end of your life – you will repent the shots you have not taken. Things you have not done. The life you have not lived. If you have not lived the life 100%, you will decide that in NEXT BIRTH you will not repeat the same – but you will end up living the same way in your next birth also. That’s why GREAT SHANKARACHARYA in BHAJ GOVINDAM had said -

Punarapi jananam, punarapi maranam

Punarapi janani jathare shayanam

(You will keep on repeating the cycle of births and deaths)

Take your own call. After all, you claim that it’s your life!!

Have a pleasant midweek.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.