Let's take an example, if a person 'X' get surrounded by people, who always have an idea of pessimism about the financial markets. what will be his conversation most of the time. "Nifty & Sensex will fall drastically tomorrow" , "This stock will lose 5% in a week" and so on. If this was the conversation going around 'X" all the day, then obviously his mind will ask him to short the market. We know Shorting the market is highly dangerous
Instead if we have an optimistic idea of an company in long term or concentrate only on the company which has good financial books, then will definitely go long in the market and chances of making money is much higher
Being optimistic about all the companies is not advisable and practically not possible, we need to do our analysis strongly and should be very comfortable with the numbers and also should have thought of the possible risk on the downside before being optimistic. This is the true approach for optimism
So it is very important to be surrounded with people who has an optimistic approach toward the financial markets. In most of the Rakesh Jhunjhunwala interviews, he is always optimistic towards the stock market, even if that day, nifty has fallen 2%. That might be one of the reason he is addressed as Big Bull of Dalal Street
A survey also says, people always like to hear the news on negative side rather than positive side and people get attracted to those news. Imagine if a person have shorted the market, the whole night he will look for the bad news about that company and companies don't post bad news that easily, which will keep him tensed all the time and make him to book loses soon after the market opens
Stay away from pessimism (best thing is if we feel anything negative about a company - just ignore that company entirely), it is the toughest job but still try to be optimistic and the feel you can attract is a big smile on your face. Always one should remember, we don't need to be invested in 100 companies to be financially wealthy or we don't need to be expertise in 25 different things to be successful
"Optimism is the faith that leads to achievement. Nothing can be done without Hope and Confidence" - Helen Keller (American Author)
"I try to think about Optimism. I try to look at the beautiful things in life" - Dolores O'Riordan (Irish Musician)
"Optimism is the Happiness Magnet. If you stay positive, good things and good people will be drawn to you" - Mary Lou Retton (American Gymnast)
"Optimism is Superpower" - Bill Gates (Do we need any intro for this person)
Have a Great Day
B G Nareshkumar
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