Why Market is falling? – Must read if you invest in Equities.

May 1, 2014

Why Market is falling? – Must read if you invest in Equities.

Greetings from Hitesh! Well countdown to 16^th May has started. Just 16 days to go!! Yesterday, I received couple of calls in the afternoon asking me above question. It made me think about the way people approach the market.  Let me deal with the “Why” question in details.

Why Questions and its implications:-

Why Should I Invest in Xyz?  / Why market is falling? / Why Market is moving up? / Why every time I only have losses?

Why I am not born in Ambani Family? / Why This and why that? / Why there is earth? / What there is water?

You can add as many Why questions as you want. When you ask such questions you look intellectual in the group. It helps you establish yourself as a smart guy. It boosts your Ego that you are not an easy guy to get convinced!!

Implications of Why?

Answers of Why questions leads to justifications of the event taking place and kind of ego satisfactions that you know the answer and the situations in under your control. But the problem is……it can convince you on the both side.

E.g. Why Should You Invest V/s Why Should You Not Invest?

You can give many reasons for both the questions. This leads to Inaction. You remain on the middle of the road and you know what happens when you are on the middle of the road!!

“What” is the way out:-

Yes, What show you the way. What refers to the Present time.

Now let us ask following questions?

What is Water?   / What is happening to the market? / What will happen to my investments due to market movements? / What will I do if market falls to 5500 levels? / What will I do if market goes to 7300 levels? / What were the reasons for buying XYZ ltd.? Do they hold in current situations?

If you study above questions in details – it will force you to take an action. “What questions” deals with Strategy, Present and Future. It shows you how smart you are at the ground level. It deals with your action plan. It does not stop you by just giving you justifications.

My Personal Call:-

In last two decades, I have dealt with two kinds of clients. One who asks “Why Should I follow Hitesh Parikh?” and “What Will Happen if I follow Hitesh Parikh?”

Those who asked the second question are blessing us. What about you? Do you still want to stick to first question?

Wish you a Happy Investing.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.