A new Acronym

Sometimes it is important to use a small acronym, or a term to explain, was condensed a large term or idea for the purpose of brevity…

Just now, I have coined an acronym for the cash that people keep in hand to invest if the market goes down.

In Investment parlance, it is called, keeping your gunpowder dry to fight the markets .

So hence on we will call it as DGP for our convenience.

DGP  or Dry Gun Powder :

A term in investment , acronym formed by @RajeeveKaushik used for spare cash kept by investor to deploy in case of market downturn in addition to his regular systematic investments.

PRAY FOR DIFFICULT MARKET CONDITIONS

 PRAY FOR DIFFICULT MARKET CONDITIONS

Most of the people who started investing in the end of 2019 or even ine 2020 have made handsome returns.
This has nothing to do with their genius but everything to do with their determination and being a good investor. A good investor comes into picture only when the times are tough ,the market is down the environment is gloomy and everyone says the end is near as was the case in March 2020.
A lot of people who were very aware and in touch with the market sold out wholesale. I am very much aware of almost 75 crores INR being pulled out by people who were supposedly closed to me but did not consult me even once.
Instead they were around 47 very new investors who attended the 24th March Webinar and together we decided to put in more money gradually.
There were people who said that they are pulling out because they know that the market will fall further and then they will get a opportunity to invest at a lower level... They're still waiting.
Such opportunities in the market do not come everyday or every year and maybe just once in a decade and if you fail to act on it - it is lost for ever.

Similar sentiment is equal to in the famous Shakespeare play Julius Caesar where Brutus says....
There is a tide in the affairs of men,
Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life
Is bound in shallows and in miseries.

Very interestingly what does "act" refer to here?
It may be different in different context but here in the field of investment it may mean...
a) Not doing anything and letting your investments just be there and watch their value fall.
b) It may also mean watching your investment value fall but stopping further investment which should not really happen.
c) It may further mean (for a matured investor) watching their investment value fall and adding more money to it with every fall.

Allowing your investments to fall because of general market condition or socio- political reasons and watch them dispassionately is not only an important part of investment journey but also an important part of your personality which shows that you're maturing and any difficulty in life will not deter you.

So all those who have shared their successes with me yesterday and also in the past need to be congratulated for their astuteness and their self belief and I hope they continue their journey with the same zeal.
They will discover in the times to come that not only there portfolio has grown to unimaginable levels but also their personality and character has become more settled and matured.
They will always be honest citizens going by the law of the land that they live in also helping others whom they don't even know personally.
Remember that, to consume is human, to give away is divine.