Have and Lack

What we have and what we lack. Everyone in this world will have certain things and they wish for certain things which can be defined as they lack. It is more important on what we concentrate and focus our energy. There are many people in this world they concentrate more on what they lack. It is not advisable to do so. Though we have little with us, it is important to concentrate on that and stop worrying on what we don't have. In financial world, most people enter with very limited knowledge. Some people gain knowledge on the time and live experience but many stay where they are and tend to lose their capital.

One of the main reason for this tragedy is they concentrate more on what they don't have. Say for example, if a trader or investor comes in the financial market with 10 Lakhs capital. Initially, he / she would have the plan to rise the capital by having decent profit. On due course by seeing the options available which followed with high risk, they concentrate on what they don't have and lose money. Instead, one should concentrate on the capital they have and take the average return given by the financial markets every year and focus on those returns. 

Let's say if stock market is giving excellent or triple the return as the other financial markets are giving consistently, then no one will be investing on Fixed deposits or Bonds or what so ever. Hence, the financial system will balance to itself. However, holding a stock or business for high amount of time, will lead to exceptional results in stock market. This cannot be seen in the other financial markets. The check point is time or patience one should have. This is the lack in most people. Instead most people concentrate on the immediate gratification and take more positions immediately and looking for profit by end of the day. This will only lead to make more transactions and people make money through this will be brokers and exchanges.

Stock market is not a new concept, it is there for ages. One should always understand and read from the history to gain more knowledge and avoid what should not be done. Most people discuss with people who have limited knowledge and enter the market. They will not be having enough knowledge to handle the situations. Specially when it goes against their positions, they will panic and book losses most of the time. However, the person who has gained knowledge from the past will know how to handle any situation. Life is all about handling the situation, it is not being right all the time. If we can handle situation in the best possible way, it can reward us heavily. To gain this reward, continuously gaining knowledge is more important.

One of the biggest enemy in the financial world is emotion. If a person can control his emotion, he can come out of fear and take calculated risk. One of the biggest mistake is trading all the capital we have without calculating the risk factor. If the risk we take will not affect our way of living, then it is worth to take else it is better to go for a long term investment with huge patience. We should understand, our conviction will be rewards heavily before which our patience will be tested immensely. So, it is very important to avoid emotions in stock market and work with facts and calculated risk.

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  Should concentrate on our capital instead of concentrating on getting more leverages 

(Have: Capital , Lack: Leverage)

• Should concentrate on having enough patience instead of immediate gratification

(Have: Patience , Lack: Immediate Gratification)

• Should gain more knowledge as possible through continuous learning instead of being in the perception of we know everything

(Have: Continuous knowledge , Lack: I know everything, this is all it)

• Should avoid emotions, which will avoid fear and take calculated risk

(Have: No Emotions , Lack: Working on extremely risk positions)

I wish the reader of this blog will understand what they have and what they lack. After which concentrate on what we have and make every necessary steps to increase what we have. This will definitely take us to unimaginable success.

Have a Great Day

B G Nareshkumar