4 Stages of Investors. Find your stage and you will know how much money you will make in 2023?

 10^th February 2023

4 Stages of Investors. Find your stage and you will know how much money you will make in 2023?

Dear Fellow Investors,

Namaste! Many normal investors have bought shares of ADANI group companies and they are in soup now. They can’t do anything as the shares prices have gone much below their buy prices. I remember what a retired judge had said sometime back. He said – “Complainant and Defendant both knows the truth. It’s not their TRIAL. It's my TRIAL to find out the TRUTH”. So, it’s a time to find out the truth. Truth of your profit or loss lies in your stage. Find out your stage as an investor and you will find your answer for your performance.

Student of the Market: -

You are going on the road towards your office or home and you see that people have gathered on the side of the road. You become curious and you also go to find out what has happened. The same way many curious investors comes to the market for the sake of – LET US SEE / LET US FIND OUT kind of attitude.

They have neither come to the market consciously nor do they have any serious intention to make the money. In my 30 years journey as an investment consultant – I have come across tons of people with – LET US SEE kind of attitude.

The problem with these lot is that they don’t have any skill sets / no serious intentions and they are very casual in their approach as an investors.

90% of the investors losses and they go away from the market.

Seeker of the Market: -

10% of the investors who are left will try seriously after their first losses. They are determined to go till the end. They take one more step and start exploring, educating about the market and investing. Once they start – they get the glimpses of the real investing. But since these are glimpses and not the knowledge or experience – 50% of these lot also moves out.

This is a crucial step. If they get the support of the consultant or mentor, they can be nurtured to the next levels.

Those who go out at this stage will blame the market / politics and manipulation as the reason of their failure. The fact is they were not prepared, committed and purposeful.

Disciple of the Market: -

The remaining 50% starts getting the experience of the real market and investing. They see the profits coming in their account. With the experience and profits – they go deeper in to the market. As soon as they go deeper – market takes them for a ride with a surprise. Their existence comes to the stage. Only 20% remains in this stage, rest 80% goes out at this stage.

Let me share an example of Rakesh in 1999. We had seen in the HARSHAD MEHTA SERIES that they made tons of money in 1992 by going short in the market. They had experience and made profit in the past.

So, they applied the same strategy in 1999. But the shares kept on moving and their existence as an investor was at stake. Their total money plus tons of debt money was invested and now they can’t back out.

They stayed on and in the fall of 2000, it is said that Rakesh made his first billion about Rs.4000 Crs at that time.  90% of the people can’t pass this stage.

The above stage is the most difficult compared the STUDENT stage.

Devotee of the Market: -

10% of the above who passes the stage of being disciple, becomes the Devotee of the market. Now, they and the market are the same. They can understand by looking at the screen only. They feel that market is taking to them. If you look at the life of RAKESH as an investor – major change came in his attitude once he crossed the stage of Disciple of the market.

He became a BIG BULL in real sense after he went through  the grilling as a disciple of the market.

If you see the original journey – out of 100 only 1 reaches to the stage of the devotee. This 1% will have tons of money, name and fame without fail.

What NEXT?

If you are reading this post – take time to reflect on your investment journey so far. Find out in which stage you are based on the above classifications. Once you know which stage you are – you can plan your journey ahead.

If you wish to have a guide / mentor or a consultant – you can approach us for ACCURATE guidance.

Happy Investing.

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

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

 

Hitesh Parikh.