Playing Offensive (Vs) Defensive

If you ask most people in the financial world, what would they like, playing offensive or playing Defensive ?. You will hear the majority of people say playing defensive. One of the other reason we would hear is everyone need to protect their capital (That's true and I completely agree) but keep waiting for an opportunity and not ready to go and take the opportunity is not a wise option

Even in any sports, the offensive players who go and get the job done get notified / rewarded more than the one standing behind and waiting to defend themselves. The rich people always wanted to play the offensive game. They don't care what it would cost them. They will make their own opportunities

In Stock Market many people, most of the time feel greedy and take poor decisions and fail. This is not playing offensive. Playing offensive is planning properly, reading and gaining knowledge consistently, taking calculated risks, going forward to take the positions and have the patience to win. I have seen many people in Stock Market would take positions by having a bigger target but they will close that position much earlier limiting them for a small profit but they will wait if their positions goes in negative till they atleast get the breakeven (this is being offensive and losing)

If you really want to be rich in Stock Market, you have to predict and visualize the future price (value) of the stock / index and take the position accordingly. This is playing offensive in Stock Market. If you think you don't want to take any risk and you keep waiting for the market price to come down, you will keep waiting for ever and eventually make no money in financial world. When talking about risk, even the offensive players will take a calculated risk not just as what ever comes on the way

If your goal is to be comfortable, chances are you'll never get rich 

But if your goal is to be rich, chances are you'll end up mighty comfortable

Let's take an example of a stock which you are monitoring continuously and gained more knowledge about the company over the period of time. For this, let's take the example of Tata Steel (taking this stock for discussion is my personal opinion and not a trading / investing suggestion)

Tata Steel has a great value and it has given the return of around 250% in 1 year and it has a great prospects for fore coming years. However, in recent times, this stock has declined. The reason can be many like it has reached the new all-time high and can have a correction. The correction cannot be considered as decline in company's performance

If a trader / investor has the capacity to understand this and invest considering the options of making great wealth will enjoy the benefits. The important part is having consistency and patience. The investor who picks up these kind of companies are offensive players, they know how to time the market and how to invest in the market. Whereas the defensive player consider this stock as a declining stock and wait for the bottom out and don't use the process of SIP to gain the benefit of this great valued stock

The number one reason most people don't get what they want is that they don't know what they want

Have a Great Day

B G Nareshkumar