SPIRITUALISM IN THE STOCK MARKETS

CONVENTIAL BELIEF ABOUT THE NATURE OF THE MARKET. AND OTHER ALLIED BELIEFS.

Both George Soros and Warren Buffet believe the markets are always wrong.

An investor or a trader makes a decision to buy, sell, hold or do nothing based on his idea of what makes the markets tick. This individualistic idea that he has, is called his philosophy and since it is on the running of the market it is his market philosophy.

A philosophy can be described as an explanation of how the world around us works, and our means of understanding it. This understanding tells us what is right and what is wrong, what works and what doesnt.. Philosophy is the guide to making choices, reaching decisions – and taking action.

In the markets, this philosophy is adapted to trade in beliefs. According to a prominent Invesment psychologist , Van Tharp, people dont trade in the markets, they trade their beliefs. Yet many dont have any such beliefs as they hitch their wagon of thoughts to the prevailing bias at that time. Others cling to a potpourri of beliefs which are often self contradictory.

A Jedi investor uses his philosophy as a mental shield against the markets constant chaos.

A description about the market is given by Benjamin Graham , whose investment philosophy revolutionised Warren Buffets approach.

Mr. Market is a remarkably accomodating fellow , who is a partner in your private business. Without fail , Mr Market appears daily and names a price at which he will either buy your interest ( stocks which you would like to sell ) or sell you his . ( stocks which you would like to buy. ). All these quotes are based on a background of economic characteristics of the combined nations of the world at that time. All this is normal , but what is not normal is the behaviour of Mr. Market who has a incurable emotional problem. At times he falls euphoric and can only see the favourable factors affecting business. On this day he is wildly over-excited and is happy and quotes a very high buy – sell price because he fears that you will snap up his interest ( buy out his share ) and rob him of his imminent gains. But on some days , sometimes may be the very next day , he is depressed and can see nothing but trouble ahead for both business and the world. On these occassions he will name a very low price, terrified you will unload your interset ( sell your shares ) .

Mr Market has another endearing characteristic. He doesnt mind being ignored. If his quotation is uninteresting to you today , he will be back with one tomorrow. Transactions are strictly at your option. Under these conditions the more maniac-depressive his behaviour, the better for you.

Since the mood swings of the market are psychotic , there will be times when the market offers a price for a stock that is insanely cheap and buying it back at another time when it is ridiculously high.

There is however a handicap to this type of investment. We can never know in advance when Mr. Market will be euphoric or when he will be depressed, Hence prediction does not play any part in this type of strategy.

Remember the market is there to serve you in making wealth and not guide you. It will be a disaster if you fall under its influence.
So if the analyst who predicts is a unnessecary to the working of the market and the guidiance from people who are influenced by the market and are under its spell , is also dangerous then what is the basis for making investment decisions ? Here the personal and spiritual growth of an individual comes to play a important part. That is why investing in a stock market is the only gauge which can be used to measure a persons progress spiritually. When all physically available options are exhausted the investor turns to something beyond physics and numbers which is inherently spiritual.


And what is that ? His philosophy which dictates his life, his actions , his thoughts. his relations, his time, his whole living. The same belief that runs his life now gets to be used by him to make an investment. Every succesful investor has followed a different belief yet has achieved the same result. Those who blindly follow others beliefs without questioning are walking with their eyes closed. A master develops his own set of beliefs which are a result of his spiritual awakening.
Experts call it the unconscious competence, which in one line could be explained as undertaking a venture which may look risky or unachievable to a novice but is like a brisk walk in the park for the masters.

Success in the stock markets is unlike achieving success in medicine or any other commercial enterprise which follow a very linear and tangible way to progress without giving any growth or development to the inner nature of man. Many Industrial Emperors of this generation have been able to unlock only the procurring aspect of their true self. This unending journey of acquisition has no destination.

In Part 2 of this essay , I shall try to bring about some habits that a investor cultivates to achieve prosperity in the stock market. There are many successful stock market experts without the help of these winning habits , but then there are many in commercial and industrial establishments too, These Winners display a shallow confidence which is largely linked to material wealth .