The recent surge in the stock markets has once again got the tongues wagging about missed opportunity. For each investor in the market, there is an equal numbers who are sitting at ringside whose opinion oscillates with market movements. Pedestal investing thus is the worst form of investing as it vitiates learning which comes through acting and failing. As they say – “In order to win a game, one must first play it!”
Some quick conversations with few friends and family over the last week highlighted one common theme about their investments, which is how they missed the opportunity to invest over the last few months which would have given them a good shot now! This is typical for many of us who want to time the market and thus keep waiting on the aisles in search of that right moment to jump-in but possibly not able to gather the courage to move out of comfort zone and act.
This seemed akin to a “Jump Rope” game I played so fondly as a kid and recently had the opportunity to revisit during online sports session for my kiddo. In jump rope, the rope goes up and down while players have to enter and exit the game without getting stuck in the rope. With a few attempts, they get their rhythm right and are able to do it smoothly while those who get caught in the finding the right time are not able to play and thus miss enjoying the game. These pedestal-players end up only cheering others from the periphery without witnessing the joy and benefits of this game – skipping is considered to be the best cardio exercise which keeps heart healthy.
As I was revisited this one-of-my-favorite gully games, I couldn’t help but compare how this plays out in the stock market investing too. As the markets move up and down, many investors keep watching them from sideline waiting for the right moment to come until they miss it only to realize later and thus the vicious cycle sets-in. What they really miss is that these short term oscillations will keep happening but its important to get in and play along – after a few attempts and trials, one will find the rhythm and benefit from long term upward rising secular trend. It pays to be a person of action than words. And of course, when you enter, you will get better at it from your own mistakes and learn from others too if you play long enough.
Disclaimer: I am not a SEBI-registered advisor, the views expressed are based on personal experience.