For every investment option, there are a number of experts who will advise you in which companies to put the money. Studied in isolation, each opinion seems to be convincing, indicating good prospectus for profits. Their analysis contains a brief bio, the detailed methodology, success stories supported with charts and statistics, and finally suggestions about the investment criteria. Even the experienced investors are inclined to accept those suggestions. Stock-picking experts are not ordinary individuals. They are well-articulated and have a solid reason for their each move. These investment gurus provide you with everything, except that they are not accountable if the investor suffers losses. During the current depression, most of the gurus and the experts were at the receiving end. The investor has to fend for himself, and can not hope to recover the losses by surrendering before any guru. This is the hard reality of the commercial world!
The modern investment guru has got to be computer savvy. John Reese and Todd Glassman belong to the category of such gurus who are experts in computerized investment decision making. There are more astounding ‘epics’ of success authored by Peter Lynch, Warren Buffet, David Dreman, James O’Shaughnessy etc. These are the masters of the most highly regarded investment strategies, and an ordinary investor, who can not spare much time for detailed analysis of thousands of shares listed in the stock exchange, can hope to make reasonable profits, by adopting their strategies. Do consult your broker or financial consultant before taking the final decision.
Apart from the researched literature on shares, if you can spare some time for the personal profiles of highly successful gurus, the exercise will be fructifying. Their struggles through failures to climb the ladder of success are inspiring. An inspired investor will mostly do correct trades. After doing a good read about the stock market literature, keep aside everything and for awhile do introspection and evaluate yourself. What type of individual you are? Risk is a great dividing line between success and failure. Are you inclined to take risks? To extend this statement a bit further, are you comfortable while taking risks? Do you become extremely agitated when you suffer losses? Do trades according to your temperament. The ultimate goal of every individual is to lead a happy life and your activities in the share market should contribute to your overall happiness. Your profits are not to pay doctor’s bills, and to buy anti-depressants.
While trying to adopt the suggestions of the stock gurus as explained in their texts (each one of them has written a couple of books), be a discerning reader and take care about the following aspects.
1. No guru will reveal the ultimate secret. He will have his agenda to hide some information from you. He will provide the overview, some ideas and many quotations. He will not explain his real approach. You have to catch his ideas and trade as per your interpretations about his findings and suggestions.
2. Every suggestion is tagged on to a warning. Rules have exceptions, you are advised.
Instead of following this guru and that guru, try to be a guru yourself, if you wish to play a long innings in the share exchange. The winning strategy explained by gurus in their books will not take you to the goal post all the time. If that were the position, share market will be full of only winners and no losers. The followers of a particular guru do not dominate the market. Develop your own standards of trades on the basis of your theory knowledge and practical experience. That is the correct and safest approach.
The contents of the books by gurus will add to your knowledge, no doubt about it. They will teach you finer points about a structured investing style. They will make you more disciplined. They may also provide you with confidence to take risks. They may give you insights about market timings. …and by the bye, who knows? You too are slowly and steadily evolving… soon you will be another worthy addition to the category of gurus!