Have you noticed few equity investors? I am not sure how much is their portfolio. But 24/7, they always thinking about equity. They drink equity, they eat equity and they sleep with the thought of equity. Such behavior is nothing but a behavior disorder.
If you look at few individuals, experts or social media groups, you noticed that they are discussing 24*7 only about equity as if their life is depending on this single asset class. Is it fruitful for equity investors to think too much 24*7? Let us understand such behavior and why it is a waste.
Discussing too much about EQUITY is a behavior disorder
# Your knowledge is based on past but action is on future
If you noticed, whatever the knowledge you acquired for investing in equity, it is all based on past performance. However, you have to take action for your future. Hence, think twice while taking action than AFTER taking the action. Discussing too much about equity after your action is of NO USE at all.
# By discussing too much you can’t control the market
By discussing too much about the market, you can’t control the market. The market acts based on many pointers. It will not act specially for you just because your money is invested in the market.
# Many of these discussions are NOISE
How many of those who are discussing 24*7 actually knew the market crash of 2020? But still, those investors or experts showcase themselves as if they knew everything. In reality, NONE in this world were aware of the market crash or know how the market will be in the short term. However, all are throwing their views in the AIR.
Equity market can’t escape the orbit of financial gravity no matter what the regulator, experts or media is saying
# By being with such individuals or social media groups, you are confusing yourself
By associating with such high IQ people, you are simply confusing yourself. Stick to the basics of BEHAVIOR CONTROL and RISK MANAGEMENT than discussing too much on market conditions.
# Equity is a part of your portfolio
Like other assets (debt, gold, or real estate), equity is also just one type of asset class. But many of these guys think so much so that life is going to end if they do not discuss equity. I accept that equity is a necessity for our long term goals. But it does not mean one must think 24*7 about equity. Life is beautiful and stress-free. Enjoy the life with family and friends than converting your life into hell by investing some part of your asset into equity.
If you can’t digest the volatility, then simply stay away. There are many wealthy people who never touched equity. It is the industry that created a misconception that to be wealthy, you must have equity.
# Equity investing requires a vast knowledge
The equity research or advisory industry is the biggest industry. Acquiring knowledge is a must for all of us. There is so much to know but we have less time. However, luckily, we don’t have to master everything on equity. If we understand the basics of equity and how to use it for our purpose, then rest everything is garbage.
# Focus on BIG and SIMPLE ideas
If you focus on big simple ideas like goal setting, asset allocation, or in equity adopting the index investing, then the rest of all these looks NOISE. Because such discussion in no way will help you.
However, for many adopting simple ideas may look silly. Hence, they jump into the bandwagon experts’ social media groups. This forces them to do many mistakes than the right decisions.
Conclusion:-Discussing too much is a dangerous behavior that may force you either to do more mistakes or stay away from equity. Be a listener and thinker but not a NOISE creator for the society or for yourself. Steven Covey, in “The 7 Habits of Highly Effective People”, argues there are five levels of listening: (1) Ignoring; (2) Pretending to listen; (3) Selective listening; (4) Active listening; and (5) Empathetic listening. Follow these steps and avoid the part of the noise. Spend your energy on YOU, the biggest cash flow generating machine by acquiring new skills and knowledge.