today i am going to explain the process of selecting quality stocks by giving an example.....
suppose you are very very hungry and i give you an option from 2 bowls to select which ice cream you want to have....the first bowl contains plain Ice Cream and the second bowl contains same plain Ice Cream but poison mixed in to it.....Now it is been told to you in advanced which bowl contains plain ice cream which you can consume and the other ice cream mixed with poisonwhich after eating will gaurantee that you die....
obviously without any thinking and giving a second thought you will select the bowl with plain ice cream....but what about the second bowl of ice cream with poison mixed in it....you will not even look at it because your brain immediately starts firing DANGER signals and telling to avoid having that ice cream bowl....
so here two process of thinking is happening....
first without thinking to have the plain ice cream
second to avoid the ice cream mixed with poison......here your brain is thinking and telling you to avoid because you can die....
i hope it is clear till here....now the other story.....
Now in a bull trend and rising market in euphoric phase i am again giving you an option to select one option from the 2 bowls.....the first bowl containing blue chip stocks...like infosys....reliance industries....HDFC Bank....and the second bowl containing Penny stocks like.....Vakrangee....Suzlon.....LEEL....
Now what will the investors do.....definitely they all would have selected the Penny stocks Bowl and have neglected the Blue Chip stocks bowl....am i right....i think so...that is what the greedy investors do when there is high tide and everyone swimming naked will enjoy swimming in the sea.....
but they forget it is a death path for their financailly well being....i mean knowingly they are killing themselves financially....
in the first example they avoid the ice cream with poison mixed in it and in the second example they invest in penny stocks with poison mixed in it and which is a sure path to disaster for themselves and also for their family....because they in return deprive their family of financial stability and security by lossing money in such manner....
in the second example the process of thinking is only GREED and the logical thinking is gone for a toss....i mean in the dustbin....in the first example you will think rationally and save yourself but in the second example you will think irrationally and kill yourself financially....what type of behaviour is these.....please introspect and think.....
suppose you are very very hungry and i give you an option from 2 bowls to select which ice cream you want to have....the first bowl contains plain Ice Cream and the second bowl contains same plain Ice Cream but poison mixed in to it.....Now it is been told to you in advanced which bowl contains plain ice cream which you can consume and the other ice cream mixed with poisonwhich after eating will gaurantee that you die....
obviously without any thinking and giving a second thought you will select the bowl with plain ice cream....but what about the second bowl of ice cream with poison mixed in it....you will not even look at it because your brain immediately starts firing DANGER signals and telling to avoid having that ice cream bowl....
so here two process of thinking is happening....
first without thinking to have the plain ice cream
second to avoid the ice cream mixed with poison......here your brain is thinking and telling you to avoid because you can die....
i hope it is clear till here....now the other story.....
Now in a bull trend and rising market in euphoric phase i am again giving you an option to select one option from the 2 bowls.....the first bowl containing blue chip stocks...like infosys....reliance industries....HDFC Bank....and the second bowl containing Penny stocks like.....Vakrangee....Suzlon.....LEEL....
Now what will the investors do.....definitely they all would have selected the Penny stocks Bowl and have neglected the Blue Chip stocks bowl....am i right....i think so...that is what the greedy investors do when there is high tide and everyone swimming naked will enjoy swimming in the sea.....
but they forget it is a death path for their financailly well being....i mean knowingly they are killing themselves financially....
in the first example they avoid the ice cream with poison mixed in it and in the second example they invest in penny stocks with poison mixed in it and which is a sure path to disaster for themselves and also for their family....because they in return deprive their family of financial stability and security by lossing money in such manner....
in the second example the process of thinking is only GREED and the logical thinking is gone for a toss....i mean in the dustbin....in the first example you will think rationally and save yourself but in the second example you will think irrationally and kill yourself financially....what type of behaviour is these.....please introspect and think.....
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