The Hindu Business Line : Stock spotting is like spying

Opportunities for great wealth are everywhere – you just need to see them, says Hilary Kramer in ‘Ahead of the Curve’ ( www.landmarkonthenet.com ), a book that discusses ‘nine simple ways to create wealth by spotting stock trends’.

The author compares stock spotting to wave surfing. “Good surfers wait to spot the perfect wave. When it finally comes, they’re able to catch it for a great ride. Creating wealth is similar.”

The very nature of trends, as with waves, is that they are constantly in flux. Therefore, you need to remember that tips about the specific trends of today, talked about by books and pundits, can become useless tomorrow. But you can spot ‘a reliable emerging trend yourself before the pundits are onto it,’ assures Kramer.

The ‘how’ of spotting, according to her, is more like spying: “constantly looking for clues in places other people don’t expect to find them, never letting anything slip by unnoticed, always paying attention to your surroundings.”

Face the fact, however, that not every pick may turn out to be a winner. What is essential is “not to let your confidence get destroyed by mistakes.” And stay clear of the trap of overconfidence – something that can wipe you out completely.

A book that will help you invest confidently.
Success alphabet

A for attention, B for belief, and C for compass. This is how Nicholas Bate begins ‘Being the Best’ ( www.wileyindia.com), ‘the A-Z of personal success’.

To direct your attention right towards your goal or desire, you’d need a triple focus – of time, mindset, and energy; all three of these should be appropriate (sufficient), and dedicated (that is, ‘allow nothing to come in its way’).

It is not impossible to find time for what is important, says Bate.

Only, “you need to make it important to you. If something which is important is not getting done then you will need to change your priorities.” Mindsets can often be limiting, such as ‘this is going to be hard’. Yes, it might be, but that needn’t stop you, urges the author. “Be aware that the way you are thinking will have subtle and not-so-subtle effects on the results that you get.”

Good to re-learn the ‘alphabet’!
Savings strategies

Are there savings products among the poor? Yes, there are, as a research conducted in Madurai has found. “Informal savings used by respondents include schemes at jewellery shops, buying gold, petty cash hidden around the house, unregulated chit funds, saving with moneylenders, exchanging cash gifts at social functions and schemes for small savings at schools,” reports ‘Indian Microfinance’ by Prabhu Ghate ( www.sagepublications.com ), about the study.

On the demand side, it was found that most of the respondents liked ‘the agent system where they can make daily, weekly, or monthly deposits from their doorstep’. The women wanted to keep the option of withdrawing their money in case of an emergency; yet, a felt need was for ‘short-term investment accounts where they could withdraw their money after six or nine months of regular savings’.

Field-level insights.
Tonnes of discipline

Going by the current situation, it may be unlikely that the stocks you hold may touch newer peaks every day. Try, instead, ‘Everyday Greatness’ by Stephen R. Covey ( www.pearsoned.co.in ), a book with nuggets “gathered by Reader’s Digest from decades of classic ‘success’ literature and from many of the most currently respected people around the globe,” neatly arranged in 21 chapters, each titled with a single word, such as contribution, charity, attention, responsibility, courage, and so on.

“Taking charge of your life requires discipline. Yes, tonnes of it,” writes Covey in the ‘discipline’ chapter. It demands mental stamina to overcome empty passions and faulty habits, he explains.

“It also requires the fortitude to resist the pull of so many temptations that otherwise might lure us toward meaningless sideshows…”

Counsel that applies to market players too, doesn’t it?
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