Why I didn’t make millions in stocks
K: Hi Sir, We have a call for DCH with the target of 146.
I: What’s the current price?
I: Is it an intra day or delivery?
K: Delivery, we’re expecting it to go to 146 by Monday.
If I go by my stock broker, in theory, I’ll double my money every 3 months. One fine day I asked him what does his portfolio look like and he was shocked as if I asked about his extra-marital affairs! “I don’t have a portfolio sir, I just advise people based on research;” he hesitatingly replied. Eureka! Eureka! I just discovered why my money was not growing. Not that I rely on him for stock advise or blindly follow whatever he says but it’s good to have, as IT world puts it, an SME (Subject Matter Expert) and I believe if someone doesn’t have his own portfolio, he shouldn’t be allowed to give any advise; just like if we want to join a gym to become fit then the gym instructor should already be fit. It’s all about credibility!!
Have you ever gone to a grocery shop looking for a book? No, because that’s not the correct place. Likewise we need to be aware of where to find reliable advise or correct information. I recently met a person who believed he could talk about financial literacy. Upon asking which all books he was familiar with and would recommend for financial literacy, he said: “we don’t really need a book, that’s not important.” I proceeded to ask whether he attended seminars or lectures about finance and got disappointed again. You are no good, I said to myself, I’ve at least read a few books on that topic and I don’t call myself a financial adviser.
This is so common in our daily lives that more often than not we take suggestions or advise from wrong people, who claim to be experts, and end up in trouble. The other day I was talking about risk taking and the its pros and the other guy was dumbstruck; he never took risk in his life and believed only in security and all those good stuff he had learnt since ever. So next time when you require an advise or information or a tip, think about the credibility of the source because that can make all the difference. Not talking to a poor guy on how to make money is pretty much common sense.
I like the way Zig Ziglar puts it, “If you want to lose weight, go to a skinny doctor!”