03 Jul The Cockroach Story
At a restaurant, a cockroach suddenly flew from somewhere and sat on a lady.
She started screaming with fear!
With a panic stricken face and a trembling voice, she started jumping, trying to get rid of the cockroach with both her hands desperately.
Her reaction was contagious, as everyone in her group also got panicky.
The lady managed at last to push the cockroach away. But it landed instead on another lady in the group.
Now, it was the other lady’s turn to continue the drama.
The waiter rushed forward to their rescue. In the relay of throwing, the cockroach next fell upon the waiter.
The waiter stood firm and composed; and observed the behavior of the cockroach on his shirt.
When he was confident enough, he grabbed it with his fingers and threw it out of the restaurant.
Sipping my coffee and watching the drama with amusement, the my mind’s antennae picked up a few thoughts; and I started wondering – was the cockroach responsible for the ladies’ histrionic behavior?
If so, then why was the waiter not disturbed? He handled it near to perfection, without any chaos.
I realised then that it was not the cockroach, but the inability of those people to handle the disturbance caused by the cockroach, which disturbed the ladies.
Sitting over there, the ladies’ histrionics and exaggerated reactions reminded me of how stock market investors react to market volatility and market corrections. It almost seems as though the world comes to an end and doomsday looms large; and how contagious this reaction gets, leaving everyone fearful and insecure.
But ironically a market correction should be a period of remaining cool; and responding in a sensible way by purchasing stocks and mutual funds; a period of bumper discount and joy.
Sitting quietly, I realised the acute need for investor education which alone could put brakes on this kind of frenzied reaction to market volatility.
Investor education thus could act as a calming solution for investors. Sensible investors in turn would help the economy ride through volatile periods unscathed.
Lessons learnt from the story:
One should not react to the market volatility. One should rather respond based on sound education. Ironically while the reaction conveys fear, the response on the contrary should express joy. At the restaurant, the women reacted, whereas the waiter responded.
The uneducated investor will react while the educated investor will respond.
Reactions are always instinctive whereas responses are always well thought of.
A beautiful way to understand…………INVESTING.
Investor who is HAPPY is not because Everything is RIGHT in his Life..
He is HAPPY because his Attitude towards his investing is Right..!!,,,,,,,
Dharmendra Satapathy at NextLevel-Education