Discussion about not just intellectual quotient (IQ) is important along with it Emotional quotient (EQ) is important. Also see how members are sharing their psychological impacts on their investing. Be the part of very much Informative Discussion through Nifty Millionaire Tribe (Slack). Call on : 02230987899. Website : www.niftymillioanire.com
#Knowledge : Investment Success needs more EQ than IQ :
Rolf Dobelli, a Swiss author and businessman aptly said, “News is to the mind; what sugar is to the body.” This so nicely applies to investing. Most of us decide our investing decisions based on random news items and these decisions are mostly emotional.
The first market fall always looks tempted to buy more as we most often than not relate it with some news. However, it is the second or third or even the fourth fall when most say ‘Bye Bye’ instead of ‘Buy Buy’.
Peter Lynch was absolutely right when he said that to become successful investor
It’s ok to have average brain but one must have good stomach. The stomach to digest volatility, stay rational and stay invested.
“Half of your return is determined by your investments, the other half by what kind of person you are.”– John Bogle
#Knowledge : Important learning shared by Members from Stock to reaches:
Understanding the behavior of the stock markets is the most difficult because markets are made on the basis of varied opinions expressed by their participants. – Parag Parikh
#Knowledge : The Intellectually Difficult Path :
As long-term investors, they are willing to wait for them. They are not perturbed by events, news, rumors and gossips that creates short term volatilizes. Since their goal is investing long term for cash flows as against capital gains ,they are in no hurry to invest.
They strongly believe that opportunities are always there but that when the biggest of them come, one must have the money to invest. They are therefore , very careful about allocating resources.
They have the patience to wait till the right moment full stop brokers usually do not like such investors as they don’t churn their portfolios regularly. Intellectual investors are also emotionally strong. That is the reason they are able to exercise restraint.
The most successful investment money managers like“Warren Buffett, Charlie Munger, Peter Lynch” owe their success not only to their “intellectual ability” but also to their “Discipline and Emotional Control”
#Technical Charts : Castrol india looking at accumulation zone.
“Think about what that means for you as an investor or trader. You’re playing the game of life. Sometimes you win and sometimes you lose, so there are both positive and negative consequences.
To accept both the positive and the negative, you need to find that special place inside of you in which you can just be. And If you haven’t found that place in yourself, then it’s very hard to accept
losses. And if you cannot accept the negative consequences, you’ll never
succeed as a trader.
Good traders usually make money on less than half their trades. If you can’t accept losses, then you are not likely to want to get out of a position when you know you are wrong. Small losses are more likely to turn into giant ones.
More importantly, if you cannot accept that losses will occur, then you can not accept a good trading system that will make a lot of money in the long run but might lose 60 percent of the time.”
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