STOCK MARKETS:- WAR OF EMOTIONS

Understanding and taking into consideration the psychology of the almost every human nature that very few people know about real investments as well as very few wants to know about them. As I also concluded in my last article ‘STOCK MARKETS:- NOT TO BE BLAMED FOR THE EROSIONS’ That stock markets are only meant to be for investments. But if we people do trading or speculation in market then the risk involved is entirely our responsibility. Stock market has nothing to do with those profits or losses occurs in trading in the market. Believing in it or not is entirely one’s responsibility.

In stock market if you do not have control on your emotions, greed, temptations, decisioning power, acting-reacting power, thinking power etc then there is only few percent chances to get success in trading because trading in a stock market is a mind game. In trading at any point of time if you loose control on any of these above natures then the result will be very devastating. Perhaps then you will not be able to get out of that trade. But as we all know that controlling the emotions are most difficult thing to achieve except only few. We people (most of us) are bound to drain in our emotions.

I have seen that for the fresher in the market, trading in stock market seems to be very easy. They say its only buy and sell nothing else to do. They say you buy low and sell high & vice versa. It is very easy. I want to ask all of you that Is it really so easy? You must be laughing on them and also feel pity on them but they will not listen to your experience unless they fallen once in market. Trading in stock market is the toughest business of all times. It’s a war of emotions. If you loose a little grip on your emotions then the results will never be thought of.

In my point of view it is for sure that stock markets are not meant for trading. Its only meant for investments. But as a normal greedy human beings 95% of us likes only to trade in the market whether we loose or win. They think that investments are only for fool wise businessmen of the world like WARREN EDWARD BUFFET etc. Intelligent greedy people will only wants to trade and make money in tons including me also. The reason for few of the smart traders for not investing in market is not they don’t want to invest in market rather they don’t know the meaning of investments. Those people who lost their capital in stock market are not unlucky people but the reason for loosing is not having any control on emotions. Stock market trading is definitely a war of emotions. If you loose from your emotions then you cannot win in stock market. As we all know that, “ Emotions have no place in business.”

There is also one rule in trading that don’t be get personal with any of the stock. Don’t you ever get attached to the stock. Don’t think that this is the best stock in market because it has given me lot of return in the past. And again I am going to buy this stock leaving aside other good opportunities in market. There has to be no emotional relation between the trade and the trader. On that prospect sharing my own experience I had earned lot of money in single stock i.e. Hotel Leela in Indian stock market & I use to believe that I am absolutely familiar with the movements of hotel leela but proved absolutely wrong and next time in that stock I had lost more than doubled the money I earned earlier. So, don’t you ever dare to think that you can rule the movements of stock markets.

In the end concluding my article I must say that although you have to have greed and temptations in life to achieve higher aspects in life but they should be in limit and in proper plan to be executed depending upon the extent of your level to bear & tolerate the risk involved. There should be proper ethics and plans to follow in trading part of the stock market. If you forget that ethics and plan which has been made before taking trading position, then your whole system of trading went absolutely disastrous.

THE LEGENDARY, THE VISIONARY, THE TREND SETTER

MR. DHIRUBHAI AMBANI

“If you have the belief to choose your own road,
If you have the courage to stay on it,
If you have the conviction to surmount the rough stretches,
If you do…… you will find that the road begins to follow you.”

MR. DHIRUBHAI AMBANI respectfully and regardfully justifies these lines very well. Whenever any one thinks of MR. DHIRUBHAI AMBANI, the first thought comes to mind is strong determinated thinking with no negative bias. The qualities which possess MR. DHIRUBHAI AMBANI are far sightedness, strong determinated thinking, positive attitude, willingness to do impossible, understanding human psychology, dare to think big etc. He does not create this big vast first private Indian company by mere chances. He has given his day and nights for building his big reliable enterprise. But that doesn’t mean his fate didn’t play any role in his success. His fate also plays a role to become most successful man in this universe. Because he had the courage and strong determination which provides him blessings of the almighty. If he did not think as big as he is then what the almighty can do for him. There is popular saying that,” God help those, who help themselves.” He had the patience to use the right time for his goodness and success. He did not wait for the success to come without his hard working efforts. He had worked very hard to achieve the success.

“Patience will pay only when you are trying otherwise patience pays for what?”

I have heard many people saying that don’t worry, Have patience! Have patience!! Patience will pay. I also agree with that but patience will pay only when you are trying but if you are not trying hard then what the patience will do for you. Lying idle will not pay anything. You have to make efforts to get paid. The same had been proved by MR. DHIRUBHAI AMBANI. If he didn’t give his hard working efforts then he will not be more than a cloth trader or attendant at the gas station in Yemen. He dares to think of his big vast empire only then he is able to create it. If he also thinks like a common man then nobody will remember him as the business king of the Indian industry. For reaching that position where MR. DHIRUBHAI AMBANI is sitting today is not achieved by sudden flights or impulse, it is achieved by the series of efforts working together.

“The heights by great men reached and kept,
Were not attained by sudden flights,
But they, while their companions slept,
Were toiling upwards in the night.”

He has that special ability to influence human nature to invest in his ideas and dreams. He always understands the human psychology that helps him to mold everyone according to his interest. He is the first one who convinces the general public to invest in his private company. Undoubtedly he was a true warrior in a business sense. He has made his enterprise too big and too vast that today RELIANCE group has prominent place in business world of India. No doubt LEGENDARY MR. DHIRUBHAI AMBANI IS A NATION’S PRIDE.

“Not gold, only man can make,
A people great and strong,
Men who, for truth and honor’s sake,
Stand fast and suffer long,
Brave men who work when others sleep,
Who dare while other fly,
They build a nation’s pillar deep,
And left them to the sky.”

Sadly we have lost the LEGEND & NATION’S PRIDE MR. DHIRUBHAI AMBANI physically on that horrifying date 6 July 2002 but in my point of view he (LEGEND) is still alive not physically but as a motivation and inspiration in all struggling hearts and active brains.

STOCK MARKET: - Not To Be Blamed For the Erosion

Stock market is a prime part of the financial system in any economy of the world. It is the only place where all companies get the public fund to perform their operations. Stock market also symbolizes the financial position of any economy. Stock market is a place where any person can become a stock (stake) owner of any listed public company and also at any point of time can exit the company by selling his stake to the interested buyers of that stake in stock market. The basic concept behind the formation of stock markets universally is only investments or being a part of any company on basis of your search or analysis to get share of company profits.
Now the undebated question arises, whether the stock markets to be blamed for the erosion of capital of masses or not? My answer to this question is absolutely not. But yes I have heard most of the traders saying that market has ruined them, market make them sick, market has stolen their bread or butter, they have loose their pants & shirts in stock market and after that they start abusing market and its behavior. They start saying that this is a rubbish business we never ever will trade in it again. They are bunch of crooks. They are pick pocketers. It is a terrorists market, which will make you bend on to your knees. Now I want to ask them one question to clarify their views on market. Do they really know the real basic concept behind the formation of stock markets? If yes then there are very few chances of loosing capital in market unless there is fraud in company management. If no there are only 5% chances of making money in market depending on your luck.
As we all know that stock markets are meant only for investments (only knows not apply) but if we people choose trading as a main option in market then the responsibility of the high risk involved for being stolen in a blink of the eye is also ours. So nobody can complaint the stock markets behavior for their losses as they are playing against the behavior of stock markets. No one compels us to trade in the market nor the broker neither the government. The person who compels us to trade in market is ourselves - our emotions, greed and temptations. Trading in stock markets is like gambling in casino. When the word trading (intraday or positional) is attached to stock market then that is gambling and gambling has no future. It is a universal truth that nobody takes money back home in gambling except only the luckiest persons of the world. Otherwise result always ends in negative. In gambling you can win once, twice or thrice but not always and the result at the end always remain in negative.
I will take iron as an example to explain my views. We all know that iron is used for ironing the clothes and that is what iron is made for. If any one use iron for straightening the hair then the damage caused to hair like burn is entirely the users fault. Now can any one blame iron for the damage of hair? If yes then stock markets can also be blamed for the losses. Otherwise do not blame markets for the erosion caused. Now taking one more example into consideration to support my views we all know that yoga is extremely important for meditation and for the good health of the human beings but there are lots of asana, which are restricted for different-different people having different-different kinds of diseases like hala asana (plow posture) is restricted for women in menses period etc. severe effects can be caused by performing improper asana also. So, in a nutshell we can say that the problem is not with yoga but the practioner only. Everything in this world has positive and also negative effects. As WILLIAM SHAKESPEARE said,’ nothing is good or bad in this world, it is we who make things good or bad’. Same with the stock markets also.
Now in the end, I am not saying that you people should stop trading in stock market but if you loose your capital in stock market because of trading then don’t blame stock markets for the erosion of capital. It is our fault by choosing wrong and very risky path in stock market. It is not markets fault. It is a fault of our emotions and temptations.

RECESSION: -: A TIME TO REPLENISH YOUR CAPABILITIES

“Think Aggressively but Wisely”

Unbearable, Unforgettable dark night following a brighter day for those who not only survive but comes up with Innovative new ideas with Far sighted approach. When others are praying for an end of the recession taking a very cautious and blocked approach for the future time.
Yes it is the recession time that makes many aggressive minds cautious. Recession, the word only creates panic in all economic minds. Recession makes many people helpless. In recession time very less people have far sighted approach to look in to the future time. Every business gets a hit in the recession time except only saints.
According to my level of mind, Recession is the only time when any open eye dreamer has a good opportunity to start making efforts to make his dreams come true because of the low competition in the world. So, recession is the best time to start new venture, new business for all those energetic people who believes that, “In every adversity lies an opportunity, if you can dream it then you can do it.” Reason for this is the time when every government looks forward to save and recover their economies from the dark side by giving all kinds of aids to the industries and to the public. But I didn’t say that you would be on top of the business in recession time. However you will get a start to rock in recovery period or in progression time. When you initially get the experience of the darker side of the business then you will easily avail all the opportunities coming for you to achieve the brighter side of the business because once you come to know the depth of the river, you will have a good chance to come out from all the hindrances coming in your path by swimming in the river to reach the bank. As also one proverb proofs that, “Be fully fit at the right time & anything is possible.” In recession time one will get all the needed experience to form the strategies in the future time whether be it recession or progression.
I have a good example to back my words. I am working as stock market trader. I had started my career five years back in the time of Bull Run all over the world. No doubt, I had made enough money. But my experience in market was incomplete because I had seen corrections in market not bear phase. If I did had the experience of bear phase I wouldn’t loose all my capital now in this glooming phase. Believing on my capabilities if I have started my career in this phase I will not loose all my capital in the market so easily because I am confident enough that Indian stock market has lot of potential in the future course time, Except the political uncertainties. On uncertainties issues I must say that risk involves in every business every time whether it is recession or progression. According to my sense thinking of the risk involves in the future time we should not stop thinking positive for the future time and else remains with the God. I am here to work hard & I will do it till my end. So I will definitely earn lot of return on my investments now in the future time of recovery or progression. I will be ripping fruit from my hard work in coming time. It is only the time matters. Nothing stays still & Time never remains the same as also the economies.
Now the big question arises? Whether I have applied these words in my life or I am just imagining. The answer is Yes I do. I have taken an initiative to write an article on recession. If you people will read and apply this in your career then I will definitely be getting name & fame. From people I mean only energetic, encouraging and motivating minds.
At the end I must say that you people should take positive and far sighted approach in your career to achieve the higher end of it. Think big, think vast but you must be determined enough to work hard and always think from your mind. This is the key to success. “Success will come when preparation meets opportunity.”