THREE PILLARS OF INVESTING

Let's talk about Successful Investor. I have an interesting fact that I have Experienced, People read Books about How to become Successful Investor, How to study Economy, Market , What will be of Market, How will people behave, etc. If you pay attention and think deeply - How to be Successful Investor?, It's just Psychological Things. Inorder to become Successful Investor you want TRUST, as Money is very dear to you, because when you invest you deliver funds to others. Who do Trusts? It's People you.. It's your Challenge. It's not others. To become Successful Investor, it's your Challenge. Second Thing to become Successful Investor is "PATIENCE" AND "DISCIPLINE". These things make you Successful Investor. Let's understand about Psychological Factors. 

How is Trust Established? It depends upon you. Whenever You trust some one or not Trust someone-  What's the Process. You Trust Someone by seeing the Intent, Character, Transparency, Confidence, Consistency. Trust is a Natural Instinct. How it comes? Let's understand with an Example.

One Father called his 5 Year Old Boy and asked How much you Like Chocolates? The Child says - I like Chocolates very much. The father then asks him How much Chocolates you want - More or Less? The Boy laughs and says - What Dad.. As I love Chocolates I will take more. Why will I take less. At that time Father gave two options to his child - Take 2 Chocolates right now or take 3 afterwards. What Option will he choose?  Of course, 2 chocolates. There are many reasons as he opted the First Option. But the important reason is - When Father asked his son - You said you will take Chocolates more, then why hadn't you taken less? Boy says - Today you are giving me 2 Chocolates. I don't know whether tomorrow you will give me or not. The 5 Year Old Boy - whose Soul is holy, doesn't trust his father. The small Child who has not learned worldliness, whose Soul is Holy, there is no hatred, jealousy in his heart - he finds himself difficult to trust his father whether he will give 3 chocolates to him or not. The biggest Challenge in Investment is Trust. You have to Cross this River. The number of Investors who have failed is they have not trusted the Investments.

There comes small Obstacles, Confusion, Ups and Downs and they come out of those Investments. Leave Journey incomplete and doesn't become Successful Investor. The first condition to become Successful Investor is TRUST. You have to Trust. You have to Trust your Country that it will flourish, your Mutual Funds Investments will rise and so Mutual Funds in India are called TRUST. They appoint Asset Management Companies to help you in rising the Investments. Always remember, if there's no  TRUST, NOTHING is there. And always Remember, its your challenge to face the Trust and trust the Mutual Funds. It is how to think to Trust - 

Intent  

Character

Transparency

Competency

Consistency

If you have  Trust there arise one thing - PATIENCE. We do not get Patience from  Birth. Patience is that thing, that power which we have to follow, to learn, to understand.  What Patience Means? Patience means when atmosphere is not friendly, how you behave. Whether peace exists in your mind? We say Patience as delay in Job done. The Interesting fact is that the things which make Life Successful, are the one which makes Investments Successful.

One Psychologist  from Standford University, some 40 - 50 years back tried to say from his experiment about the importance of Patience in Life. He took along which his team some children of age 3-4 years. This is called Marshmallow Experiment. In this Experiment he gathered all children and categorized them. As Children were hungry, they were given Marshmallows. Children became happy as they got some food to eat. But they were told if you quit eating these marshmallows for some time as the team is going out, you will be given double. They were given two options - Either you eat now or wait for some time to enjoy double marshmallows. You have to be patient. The Team examined the Children and saw that some children ate the marshmallows immediately, some children tried to not eat and eat after some time. One child picked one piece of marshmallow and tried not to eat but slowly ate it . There were only some Children who did not eat Marshmallows. How did they earned Patience????? They adopted very fantastic technique. They stopped seeing marshmallows. They went far from the table of marshmallows and started playing some other things. They started wondering here and there, started talking to themselves, but did not see marshmallows. Because whenever we see, smell, our wants increases. So, we get training in Mutual Funds to not to see NAV daily. Who sees daily the prices of shares, NAV, are impatient. But the moral of the story is who ate Marshmallows, and who had not eaten, created their files. After 40 - 50 years, they examined the Children and saw those whose were impatient children, did not succeed in life and those who were patient, touched the peak of success. This is the power of PATIENCE. But how we created and made patience is to stop seeing the thing which troubles you. So, let's stop seeing daily NAVs. 

Why are we Impatient? The time which our God has given us gets consumed and never comes back. So, every individual has natural instinct to save the time. And so, whenever there is delay in some work, he thinks his time has got wasted. This thing affects him very much emotionally. He gets distracted and thus leads to increase in taking wrong decisions. So, there is very big importance of Patience. But, there is no Patience until there is Trust in you. Patience influences your Decision - making, because at that time you are becoming distracted. How you feel when anything happens that cause delay? We also goes through such condition in Investments. You make investments, and when you find no returns after 3-4 weeks you pull out your money from the market. How will the Patience come? No person will help you, you yourself help to create Patience. When you doesn't have Patience within you, what happens? Let us understand. 

My Brother with his few friends few weeks back went to jungle to see Lion. As my brother and his friends reached Jungle, they saw a jeep and a Guide in it. They were said to keep patience as they want to see Lion. They agreed. They were given 3.00 pm timing. For first 15 mins, they didn't see Lion and become troubled. Inorder to feel comfortable and relieve them from troublesome situation, their Guide stopped the Jeep, told to get out from it and showed footprints of Lion in Dust. They became very excited. They realized the Lion has just passed away half - an - hour back and walked and again lost hope as they couldn't see the Lion. Again, Guide stopped the Jeep and showed the Footprints of Lion. Again, they got excited and moved further. Now, only 15 mins left to complete 3 hours, and they are not able to see Lion. Guide tells them to keep Patience. But they are unable to keep. Just then a monkey's voice came. Guide said, Lion is coming and again stops the Jeep. All are seeing quietly, but couldn't find Lion. The 3 hours got completed, but couldn't find Lion. But they had hope and wished to see Lion. Again they Purchased Ticket for 3 hours. One friend from among that group told there is no Lion and will go to his room and will sleep. So that friend left the group. The left 4 returned and again climbed the jeep and started the journey. Again catched the new guide. This guide is wretched. As we change schemes in Investments for no returns, in the same way we changed the guide. Two hours passed, and we were not able to see Lion. My Brother and his friends were talking among themselves. Our faith is being challenged. There is no Lion.. such thing.. They have opened the business for earning money. The same people talk about Investments. Slowly they started thinking that there is no Lion in Jungle. One of his friends asked "Is there any Lion in Jungle or not"? Same Question Investor asks " Does this market gives returns or not?" As the time passes, patience ends and distrust increases. One among them friends tells that friend was smart as he did not come with us again and slept in the room. You meet such people as they say not to invest in Stocks than to invest in F.D.'s. Last 15 mins were left, suddenly a jeep put a break and the guide told to turn back and see the Lion.. They enjoyed seeing the Lion for 5 minutes. Prior to 5 minutes they were assuming there is no Lion in Jungle. Guide is fooling us. So, guide is there for keeping patience in us. For Investments, Patience is very important. In life, the very big weakness is Lack of Patience. Patience comes from Trust. Later, We had trust that there is no Lion. When distrust comes, Patience becomes weak and there is no third thing that is Discipline. Discipline means regular investment. We would do regular investment when we would trust that India is progressing. We would trust that our Mutual Fund Investments are with experts. When we have Trust, Patience comes and then Discipline exists and we will do regular investments. About 700 years back Saint Kabir has told us " DHEERE DHEERE SE MANA, DHEERE SAB KUCH HOYE" - everything happens slowly. Trees will never grow big by pouring water togethether. When the season comes it will bear fruit. We need to take care of this - 3 Psychological Traits - 3 Pillars of Investing - When there is lack of trust, then there will be no success... When there is no Patience, There is no discipline and if there are no these three, there is no success in Investment.