Tag Archives: #SpinDoctoring

Poise

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Hey.

Story’s changed already.

IT has suddenly become a defensive buy, it seems.

Not perceived as oil dependent.

See how fast that happened.

Five weeks ago one was hearing the RIP bugles for IT, or so the spin-doctors were trying to spin it.

Bottom-line : don’t believe the stories being spun. Have your own…

… high conviction.

And, the opportunity is…

…now.

Make up your mind.

Invest where you see stability and growth. Invest in India.

There are a lot of high conviction ideas in India that can be latched on to.

Fear makes good investments fall too. That is happening now. To take advantage of this effect, one needs to be fearless with high conviction.

How does one build high conviction in a stock?

Repeated shareholder-friendliness shown by a management.

Clean balance-sheet.

Abundance of free cashflow.

Debt-free-ness.

Longevity.

Vision.

Margin of safety.

That’s it.

Oh, one more thing.

Don’t force the market.

Let it make you enter.

Be poised with a funded GTT order in place before market open.

Keep doing this throughout the fall, as margin of safety deepens. One can do this if one has created enough liquidity during good times, and if one keeps entering with small entry quanta proportional to one’s networth.

Idea is to enter with and into high conviction multiple times, each time lowering the buying average.

With that, one sets oneself up for a fast multiple when markets recover.

It’s boiling down to…

…poise.

Mindset

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How long is this lasting?

Everyone’s asking.

I have another question, …

…since no one knows the answer to that above question.

My question is, …

… as far as your market strategy is concerned, …

… why are you even asking?

Just implement your strategy na.

Asking means you don’t know what to do.

Which brings us to some more observations.

‘Don’t know what to do’ state of affairs is digestible, …

… if this is your first time.

First time as in first time facing such conditions.

Conditions?

Panic. Confusion. Sell and ask later mindset. Gullibility. Mass hypnosis. Massive spin-doctoring. Etc.

If you’ve seen such stuff before and haven’t devised a plan for next time round, you are not excused, but please do so now.

If you’ve been through all this more than twice, and still don’t have a plan for situations like this one now, well, maybe you should rethink your market foray. Are you in the right space? Are you doing it out of compulsion? Keeping up with some Joneses? Whatever applies. Rethink. Shape in, put a strategy in place for market crashes, or, shape out, meaning, do something else where your expertise is challenged, and emerges forth naturally.

It boils down to rewiring.

What boils down to rewiring?

One’s behaviour during a crash.

Not panicking? Coolly implementing set strategy? Liquid enough, exactly for such situations? Not looking over your shoulder to see what strategy someone else is implementing? Not asking others for opinions? Implementing your own, mapped course of action without regret?

Great. That’s a fantastic mindset to have earned.

Such a mindset is going to take you places when mass psychologies reverse.

Wait and watch.