Response: The Ultimate Key to Success in Investments & Life.

April 8, 2013

Response: The Ultimate Key to Success in Investments & Life.

Greetings from Hitesh! There was a good response to Gold and Manmohan’s Article. Many have shown interest in understanding the market dynamics.

Let us see how investment recommendations are given:-

1. XYZ Ltd will come out with a good Earning Numbers / It is likely to give good dividends / bonus / right issue / its growth will outpace the peers / Some FIIs or/and Fund Houses are buying / Promoters are accumulating or a Famous investors is investing. There can be many such reasons given by fundamental Analysts for making an investment.

2. XYZ Ltd’s volume and price both are moving up / chart shows positive divergence/break out from the channel / break out from Head and Shoulder Pattern / Moving average is going up / Chart shows accumulations. There can be many such reasons by Technical Analysts for trading.

If you are also following any of the above methods or both the methods – we consider them as Market Reactions.

How We Think?

We believe market as a Collective Intelligence. As in the case of all collective decisions, 20% of the guys decide 80% of the moves and 80% of the guys have just 20% of the moves.

This collective intelligence decides what kind of economic numbers / earning numbers and chart moves will be come/ reported or shown. So, when we think about market….We think on following….

1. Why Market Movers are making market move in a particular way?

2. Why XYZ is giving a kind of results / earnings etc.

3. Why Chart is shown moving in a particular fashion?

4. Why since 1994 in India, when FIIs are buyers Domestic guys are sellers and vise versa?

The most difficult aspects of the above questions are….

      I.      You will never get a single sure shot text book like answers. So, you will be forced to think in terms of probabilities rather than surety.  

  II.      When you start thinking in terms of Probabilities, you will appreciate and see the dynamics of investments and life.

III.      Knowing that market you are playing with is a probability and not surety, all your actions will be responsible and not reactions.

IV.      When you act responsibly, you will bet where the probability of your success is the most!!

   V.      However, high probabilities you see, you will always be ready to accept that it may not happen at all.

VI.      So, you will play without ego. Without ego, you will have no attachment to Loss and Profit.

VII.      When you go wrong, you will do introspection of your moves and this introspection will suddenly connect your mind to the collective mind and you will understand the real game. ( Yogi’s call it Meditation)

VIII.      When you are connected to the collective mind, your success is guaranteed. ( Yogi’s call it SAMADHI -  a state of Utter Bliss)

My Personal Call:-

When you are unhappy with your life/ persons in your life / situations in your life…….just think why you have been put into a particular kind of situations or you have to bear with these kinds of persons…..you will get the glimpses of the collective mind ( say GOD) and you will get the real purpose of your life.  When you know the purpose….you will lose all your grudges against the persons or situations and go into deep meditations to get connected to the Ultimate Mind and a life full of bliss will start blossoming.

You can follow me @hiteshmparikh on twitter.

If you need personalized guidance, do write to us.

Live With Passion, Invest with Passion.

Hitesh Parikh.