What is the HEART of the Investment Success?

 

21^st September 2021

What is the HEART of the Investment Success?

Dear Fellow Travelers,

Namaste! Thanks a ton for appreciating our post on CHINA. Today we are dealing with the most important concept for success in investments and life. Way back in 1996, JIG JIGLAR, the master motivator of the USA, had taught me this. I have used the same since then and I have got immense benefit from the same. Try to apply the same in investing, if you like.

What is the HEART?

HEART stands for 5 factors. They are as under.

HONESTY: -

In the last months, we have dealt with the HONESTY. The conclusion of our 30 years of active life was only one line – HONESTY is not the BEST POLICY as being stated in the success literature but HONESTY is the ONLY Policy.

When you come to investing – HONESTY plays an important role. Here Honesty is not dealing with somebody – it's dealing with yourself and your inner motives. Most traders become investors and investors become traders due to lack of self-honesty and then they blame the luck and broker and media and many other things.

Align your inner motive with the outer actions is the first and the only step towards success in investing or any other area.

EMPATHY: -

When the market goes up – investors and traders become happy. When the market goes down – investors and traders become pessimistic. This is sympathy with the market. Those who have sympathy – will die poor in the market for sure.

Buffett kind of investor operates with Empathy. They don’t feel the same thing with the market fall or rise. They act the reverse. They sell on the top and buy when the market is really pessimistic.

So, change yourself from SYMPATHY to EMPATHY. You have to understand why the market is doing what it is doing rather than joining with it.

This is the most difficult thing to do without the HONESTY with the self. I have always found it very difficult to convince my clients to sell when the market is on one side rising.

ATTITUDE: -

Your response to the market behaviour is your attitude. When a normal investor buys a stock and it doesn’t move like ITC for the years – they will get frustrated. They will blame the management and the other things. I have seen the most qualified investors like CA – telling me that it would have been better if they had kept their money in Bank FD instead of investing in ITC. This is an attitude of LOSER. They are looking at the opportunity cost after the event has already played out. Opportunity cost is to be compared before investing and not after investing.

Buffett kind of investors will see this totally differently. They will see this as an opportunity to invest every year as per their fund flow. If the price remains the same or in a narrow range for a longer time – this is a boon for real investors as they can accumulate a large quantity of that stock over a larger period of time.

This response is an attitude.

In practice, this is also very difficult to convince normal investors.

Resources: -

Good traders and investors are full of physical fitness / mental fitness and monetary fitness. They also take the help of other professionals to keep them FIT in the above areas.

This is the biggest factor that can make a normal investor success or failure.

I have seen the most investors are not ready to invest their time and resources for physical and mental fitness.

Look at the RAKESH dancing in the CHAIR. He has not focused on physical fitness.

The goal of each investor is to have peace of mind after they earn the money – but if you have not focused on the above three areas – you will have money but no peace of mind.

Look at BUFFETT at 90 plus – he is still active and drinking COKE and eating BURGER.

Make your choice.

TECHNIQUE: -

This is the HOW TO DO part of the investing. Most investors know only one thing – take a TIP and invest and sell when the prices move up. They are not ready to understand the detailed psychological aspects of the market or the fundamentals of the company. They are too busy to invest their time in the most vital things for investing.

When an investor is not aware of the TECHNIQUE – he feels frustrated when the market goes down fast due to some of the other reasons. He can’t act. When he can’t act – his pessimism is at the top. So, invest time in learning the techniques.

What NEXT?

This is the HEART of investing. If you have this HEART – your actual HEART will maintain your blood pressures in all the market conditions. It will help you to maintain your peace of mind.

Make your choice.

Have a great investing experience.

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

 

Live With Passion…Invest With Passion.

Hitesh Parikh.