Here is the story about the two monks. The two monks are very simple and follow strict principles by the order from Guru. One day they happened to cross the small canal on the way to visit the temple .They found one beautiful woman, who also wants to cross the canal, but she doesn’t want to wet herself. So she asked help from these monks. One-person ready to carry her on the other side of the canal and other person doesn’t want to carry due to the fear of breaking the principles of monkhood. Anyway, First person helped her to cross the canal. The second guy was always reminding to the first one on the way to temple that you made a big sin by carrying her. And he explains, this is against the monkhood principles. All the time he was thinking about this one for two days continuously. The first person told to second one that why you are carrying this thought for two days and I forgot it at that moment when I helped her.
What we can learn from this story?
Be unattached …The first person, never has taken into heart, that he has done guilty. In fact, second person has taken to heart, found himself guilty.
While doing trading or investing, there will be lot of influence from the media. Media change your mental patterns, which directly reflect in your trading.
Lot of news around the globe, opinions, suggestions, tips, and this will create fear and disturbances in you …One day you feel you are optimistic about the market and other day you feel pessimistic..
So Learn how to detach with this media content and focus on your mental setups, patterns, methods, fundamentals, supply and demand.. etc
Do not change opinions by reading newspaper and watching news on the TV. News comes last to the public, by that time Stock has enough progress in his/ her life cycle.
This is true in life situations also. If you apply the unattachment concept in your life situations, then you are free from worries. You can only act and make a decision for a particular situation and rest will happen whatever it supposed to happen.
Forget noise from the media ..
Be like a LOTUS 🙂
Balaji, I think you are suggesting to make decisions always without attachment. How about you adapt based on situations? Sometimes we have to make decisions based on facts and consequences that would affect or cause some other problems or solve other problems. Sometimes we only have to deal with only the problem at hand, nothing else. How about being adaptive?
True Suren. We should need adaptive nature. But we should not take any action based on emotional level. Let me give a classic example that was happened last year. The news is Microsoft wants to takes over the Yahoo, but didn’t happen. It was a rumor that some one wants to benefit from that news., but no one has given any approval that the deal was done. Once rumor was created , that time Yahoo jumped to more than 20 % and in a couple of days it came to original price. You can see the news every place in the news paper, news channel , blogs and forums. It will almost convince you that it will definitively take over the Yahoo. If anyone caught with that news in a emotional way , they might be ended up with severe losses. This is what I am talking about the attachment.
Some big holders wants to benefit from the stock and they will create the news as if it is going to be true. You should have ability to determine the news if it is a rumor or fact or some thing else.
Fed rate cuts, Earnings release, new product initiation , expanding the business by opening several stores etc etc .., these news come from the government or company appears to be facts. But the stock won’t react the same way as it expected even it is a positive news. Some one needs to develop the situational awareness and make a decision on that. Stocks progress will determine based on many factors like market conditions, stock life cycle etc at that particular time.