Farmers know their lands, crops and seasons. They understand what their field will yield and what they should do to improve production to feed their family. Farming relies on a natural rhythm and decent amount of discipline. Their actions are habits and a lifestyle, instead of a bundle of uncontrolled actions. They work and take, while awareness can bring so many things in their lives.
This also applies in the business and investing markets. Investors should be aware of the nature of equity markets and see them as their fields. They should be able to identify peculiarities, quirks, habits and dynamics. The market also teaches us about changes in life. Just like the nature, it goes through cycles, grows and changes.
Therefore, it is important for investors to improve and nurture this relationship.
Investors shouldn’t come to the market feeling desperate, panicked and anxious. They need to have realistic expectations and managed stress level. They should have ample discipline and patience to deal with the situation. We also need to have prosperous, productive and mutually rewarding relationship. This should sustain us in bad and good times.
With experience, we could have full, flowering relationship with the market. We could be able to look at our own motivations and beliefs about the market.
Investors should understand their needs and things that can make them feel satisfied in the market. They need to have something to offer in the market, such as ample analytic capability to prevail. Investors should be able to learn from their pas mistakes and do things properly to protect themselves from catasthrope. In any way, investors need to act in consistent manners based on multiple core beliefs.
They need good enough philosophy that’s comprehensive enough to deal with ever-changing market and contingencies. They should have meaningful guidance that’s adaptable to allow us to evolve and grow. Rigid dogma in the dynamic market can be very dangerous.
It is very easy to get caught up with the usual selling and buying activities. We should also be able to prune and manage our portfolio. We need to properly analyze and collect enough data. We may need to take a few steps back and perform reviews on who we are. This will eventually allow us establish a connection with the market. It is necessary to regularly asses the quality of relationship and listen to the voice of the market. This allows us to prosper and grow with the market.
The market is consisted and built by ordinary people. It means, the market will behave like human and we should see it a large organism. The market could actually see and talk. Its behaviour is similar to what human will do when dealing with specific situation. So when it us quite likely that the market will behave unfavourably to specific condition, it is actually caused by our normal reaction.
This means, observing and listening to the market would be easy. We would know how far the market will respond to specific trigger and even whether the market will ever respond.