“I Come to Market with Intention to Make Profit, But I Always End Up Making Losses, How come?”

11 January 2015

“I Come to Market with Intention to Make Profit, But I Always End Up Making Losses, How come?”

Greetings from Hitesh! I keep on receiving mails for various questions. Many have asked this question in various ways. The above one is the latest one. Today I will deal with the same. I am happy with the response to my last post on Mr.Soros advice on Trading. Most have liked the same.

There can be many reasons for your losses – I will deal with the chief reason and give you my perspective.

Your Intentions V/s.  Your Results:-

Your do investments with a goal(dream/desire/intention) of making tons of money. Am I right? Then how come you end up making losses? We need to think on this.

There are two parts – Your Goal and Your Way To Achieve Your Goals.

You have a very positive goal of making money, but do you follow the WAY which can lead you to the GAINS?

In my last 25 years of journey as an Investor and as a consultant – I have observed that – most normal investor failed to follow the WAY. They want to go from Mumbai To DELHI, but they will catch the flight to Banglore, assuming they are going to DELHI!!

Let me give you an example -

Most Guys come to the market when it GOES UP or STARTED GOING UP. They tell me they want to do Investments!! Some tell me “they are Long Term Investors”!!

If their portfolio do not move in a week/month/ six months or year– they will be under tremendous tension!! They will doubt the companies they invested in!! They will doubt their luck/Market and they will sell everything and book losses!!

My experiences tell me that they want to make some fast money while market is going up – but they talk about investments / long term investments while they should talk about POSITIONAL TRADING!!

In above example – their intention of making profit is correct, but the way should be trading and not the investments!!

Real investment is very calculative / boring and need lot of patience. It lacks the excitement of TRADING. All Normal Guy wants Excitement in INVESTMENTS (Which is like going to Banglore, assuming you are going to DELHI)

I had bought Centrum at 220 in 2005 and it took 9 years to reach 650 today!! This is investment!! How many of you can wait like this?

(Most so called love marriages are done so that He can sleep with HER, they end up in Bitter Divorce!!)

What Next?

Be TRUE to yourself!! Be CLEAR in what you really want. Use proper terminology!! If you talk about INVESTMENTS while you mean TRADING or you talk about TRADING while you mean INVESTMENTS - you will end up making losses.

2015 has just started. If you really want to make tons of money, do join us.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.