Knowledge is the Biggest Hurdle in Market Success. You will be shocked to know.

 5^th July 2022

Knowledge is the Biggest Hurdle in Market Success. You will be shocked to know.

Dear Fellow Investors,

Namaste! Thanks a ton for liking our last post on Arjun and Duryodhana. I am getting words of appreciation even today for the same. I come across various questions and issues from the investors who are on their journey to wealth creation. It is assumed by most investors that Knowledge about the Market / Company is a must for success. You ask any MBA friend – he will make a solid case in favour of knowledge.

Let us understand what is KNOWLEDGE for the NORMAL person?

What they know is knowledge for them. They have read it somewhere – nowadays on WhatsApp or Google / heard it / told to them by their Guru / seen it in the movie. Media and Education are the major sources of their knowledge.

With the support of Education and Media – a normal person feels that he KNOWS. In reality what he considers KNOWLEDGE is nothing but Information. He mistakenly believes that information is knowledge.  

Now, this person comes to the market and 90% of the time losses his money big time.

What is REAL KNOWLEDGE?

Real knowledge is always an inside-out phenomenon. Knowledge always comes from within. Whatever you have taken from outside is nothing but only information. It doesn’t make any difference whether it is said by Rakesh or Buffett kind of investors or some Media Analysts

They must have said based on their experiences but till you have gone through the same way and your experiences also support the same – it is not your knowledge.

What are the usual steps to knowledge?

Normal investors when they come to the market, they either have GREED or they have feared. When they operate with the GREED – they go all out and buy anything and everything without worrying about the downside or the losses. In 90% of the cases, they come to the market when the market is already at its peak. 

When they fear – they just run away from the market without thinking about the cyclical nature of the market. They become so negative that they will miss the golden opportunity to buy when the market declares the SALE. The same guy will buy CLOTHES from ZARA when they declare 40% off. But they will not buy shares from the market when they are down 15% to 50%. 

There are 4 steps to convert your information into KNOWLEDGE. 

DOUBT, EXPLORE, EXPERIMENT and EXPERIENCE. These 4 steps will take you to the knowledge. This is the real knowledge backed up by your own experiences. 

A normal person does not take the trouble to go to EXPLORE when they have doubted. To save themselves from the DOBUT – they go for the EASY option – BELIEF. They prefer to BELIEVE than to EXPLORE. The advantage of the BELIEF is that they can blame somebody that they believed in him but things did not turn out as per his call. When they explore and fail – they have to blame themselves for the failure and they are not ready to take responsibility for their failure. In 99.99% of the cases – BELIEF is nothing but the doubt covered with positivity.

Just check the investment portfolio of a normal person – he will have little of everything. He is trusting in every option, which means he is not trusting anybody.

Thanks to my GURU, I have been taught to go ahead and check the TRUTH of the DOBUT by Exploring the same with an open mind. Whenever I dig a little below the DOUBT, I have to take the next step to experiment a little. The results of the experiment led me to my EXPERIENCES and my own KNOWLEDGE.

Why EXPERIENCES are necessary for BIG MONEY MAKING?

However, informed you may be in any of your fields, if it is not backed up by your own experiences – you will not have the conviction to play big in any market conditions. When you don’t have conviction – you will end up taking a mediocre decision based on information only.

Another problem with information is they keep on pouring every second. 100 lifetimes will not be enough to deal with all the information.

So, if you really want to make big money in the market – go for real knowledge and not information.

What NEXT?

Real knowledge always leads to LIBERATION or FREEDOME and FREEDOME leads to the ultimate happiness.  

Take your call.

Have a great success.

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

Learn a Lesson. Live with Passion & Invest with Reason.

Hitesh Parikh.