The wisdom in popular Buddhist stories can actually help you become a better stock market investor.
The story first..
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One day, Buddha and his disciples were walking from one town to another, when they passed a lake. A thirsty Buddha asked one of his disciples to bring him some water.
When the disciple reached the lake, he noticed that a bullock cart was passing through the lake. The water had become muddy. The disciple returned to Buddha and told him that the water is muddy and isn’t fit to drink.
After half an hour, Buddha asked the same disciple to go back and get him some water. The obedient disciple agreed and went to the lake.
When he reached the lake, he was surprised to see crystal clear water. The mud had settled down and the water above it looked fit to be consumed. He collected some water and brought it to the Buddha.
Buddha looked at the water, then looked up at the disciple and said “See what you did to make the water clean. You just let it be, the mud settled down on its own – and you got clear water. Your mind is also like that! When it is disturbed, just let it be. Give it a little time. It will settle down on its own. You don’t have to put in any effort to calm it down. It will happen. It is effortless”
Invest with a calm mind
In stock market investing, most new investors make the mistake of buying or selling shares when the market unsettles the mind.
And be rest assured, there will be multiple times when the market will try to unsettle you – both in rising as well as falling markets.
More often than not, most decisions taken during times when the market unsettles – are decisions that you will regret in the future.
Investing in the stock market is a journey from utter confusion to clarity of the mind. The day you begin investing with clarity, that’s when your losses will reduce and phenomenal gains will be made.
The next time you see a stock you like falling 15-20% in a week – pause, don’t be in a hurry to invest. Let the stock settle, let the real news on why the stock is falling come out in the open.
Is there something the insiders know that you don’t? Remember, in most cases, the stock falls first, the news on why the stock has fallen will only come out later.
The same applies to roaring bull market stocks. When stocks are rising non-stop, wait, don’t be in a hurry to buy or sell them. Let them consolidate for a few days or weeks.
Let your mind get comfortable with a price. As you gain experience, your mind will tell you when the right opportunity comes.
The feeling of having missed out on a good opportunity will always be a part of your investing journey. But one thing that the stock market will always give you is new opportunities.
Until then, spend time in the market. Don’t be in a hurry. Allow things to settle, learn along the way. Eventually with time, like the water in the lake, effective investing will become effortless for you.