What 1% of the most successful Top Traders/Investors do that we don’t do?

23^rd November 2024

 

What 1% of the most successful Top Traders/Investors do that we don’t do?

 

Dear All,

 

Namaste! Our post on BEGGAR’s dilemma was at the right time. Market has moved up today like anything. I have always been wondering – what do the most successful traders/investors do that I am not doing? I tried to understand their ways through the books on them or written by them / their videos and the media reports on them. I have found out there are 7 factors for their success. I am going to deal with them one after another. Let us start with the first today.

 

How do they devise their strategy? 

 

They keep things simple. They have 3 factors for their MIND and 3 factors for their INNER SELF. We will start with the mind. The most important 1^st step is – their abilities to THINK.

 

Abilities to Think: - 

 

Normal readers will say that we too can think. Let me elaborate. We all are full of thoughts at all times. We act like ROBOTS due to the given thoughts in our minds. Abilities to think is very rare among normal people. Because those who can think will never remain NORMAL for life. 

 

All our life we have been told what is good and what is bad. We have rarely questioned the same. We act as per our given beliefs. Let me share an example. 

 

I have a neighbour who keeps a cat as a pet. One day he brought 1.5kg chicken and asked his wife to cook it while he called his friends. It was Sunday and the friends came in the afternoon. His wife had hidden the chicken as she was not interested in sharing it with friends. So, she said – before I could cook the chicken this CAT finished all the chicken so we will have to eat the DAL- CHAWAL. 

 

My neighbour could have abused his wife in front of his friends or blamed her for her carelessness. He might have also cursed her for spoiling his image in front of his friends. 

 

But he took the Weighing machine and kept the CAT on the same. The weighing machine showed 1.5 kg weight. He asked his wife – if this is the CAT’s weight, where is the CHICKEN? And if this is the CHICKEN’s weight, where is the CAT? 

 

His wife didn’t expect this and she agreed with her cheating. 

 

If you read the above – the husband really thought rather than just to react. We rarely think like this. 

 

Look into yourself - do you think like this or just start with your preconceived thoughts and blame your wife like a normal husband?

 

How is this principle applied by the TOP GUYS?

 

Buddha said – what you think you are. You become what your thoughts are. EDWARD DE BONO spent his life teaching us about how to think? To think is the best skill one can have. 

 

Just think about the ADANI and AMBANI. Do they know all the intricacies of their businesses? No. They have the thinking mind and they ask point blank questions to their CEO’s and get their work done and have control also. 

 

Best of the traders and investors also think. They don’t trade based on the thoughts and feelings. They trade on the DATA. Last year – MODI Ji said PSU’s are good investments in the parliaments and tom dick and harry bought the PSU stocks. Look at the prices today. 

 

Now, MODI JI is not saying anything and those who bought those PSU shares are also not saying or complaining as they have bought those shares without thinking or doing their homework. Even now, they are not thinking – they are just cursing their luck. Very few lucky people would have sold PSU shares at the TOP before they fell. Now they will BELIEVE that they are GREAT Investors. They are not great – they are lucky. 

 

I come across many questions about high PE Market FANCIED stocks from my clients. They want to buy something or the other all the time. They can’t keep their cash aside for some time. All they ask me – this stock is moving – should I BUY? I will say let me study and come back to you. When I say it’s not fitting my criteria – they will buy without telling me or curse me for stopping them from so called earning possibilities. I always think before doing anything rather than thinking after doing it. I am ready to take blame for my thinking and credit for my thinking. 

 

Most people when the shares go down – which we have seen in the last two months – they start asking the questions about the logic of purchasing a particular share. This is a waste of their time. This leads to frustration and bad taste about the market. 

 

There are other groups of investors – who have been brainwashed that you are a small investor and you can’t invest on your own. You must invest through MUTUAL FUNDS only. Those who are investing in mutual funds are not thinking. They don’t want to think. They just want the profit and so they invest through SIP. They are okay with lower returns. 

 

The guy who is not thinking and investing may make tons of money someday due to pure luck but the MUTUAL FUND investors will remain normal for life for sure. They can’t expect their money to multiply 10X to 20X in 5-10 years. 

 

Why are people not ready to think?

 

When you think on your own – you have to take action. When you take actions and they backfire – you have to take the blame on yourself. To take blame on oneself is a very courageous act. Very few people can do it. 

 

Many times people agree logically with what you say but they will not apply in their life as they have emotions towards whatever they are doing. They simply don’t want to  think. 

 

When you are doing what others are also doing – it’s easy to blame the system – market – Modi ji and others. 

 

What NEXT? 

 

Big money making is very easy. Provided you are ready to think with a fresh mind. You are ready to learn the investment as a subject rather than just to take a tip and invest. 

 

If you are not ready to learn to think – if at all you make big money due to sheer luck – write it down today – your money will not stay with you for generations.

 

Learn to think. 

 

We will deal with the second factor in the next post. 

 

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

 

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

 

Hitesh Parikh.