In What money has taught me about love, Shalini M tells us how she learnt how to manage her relationships based on her experiences with investing.
Here, Get Ahead reader Sachin Lele tells us how he has learnt to manage his stocks from experiences in his love life.
It is better to have loved and lost, than not to have loved at all.
What does the 'lost' bit in this adage refer to? Love itself, or the money spent on dates? Does this popular adage apply as much to money as it does to love? Maybe, maybe not.
Nevertheless, there are some valuable lessons to be learnt about money management from that most inexplicable of all emotions -- love.
All marriages are happy. It's the living together that causes problems.
No matter how many books on marriage you have pored over and how much advice is doled out by uncles, aunts and friends, you can never be totally prepared for reality. You just have to get married to experience marriage!
Ditto with money. The only way to learn about investing and become a pro at the game is to take the plunge and invest yourself. The volatile nature of the stock market and its effects can only be felt when it is your money that is at stake.
Of course, like courtship before marriage, there is a familiarity phase. That's when you should understand how the stock market works, what the various types of stock are and decide how much of a risk you can take.
There are no meaningful one-night stands.
Maybe I am a die-hard romantic but I truly believe this one.
This applies to money too. You get a 'hot' tip and may make tons of cash. But don't expect to keep raking in the moolah through this route. Some tips are bound to leave you much poorer while others will end up giving you sleepless nights as the prices gyrate by the hour.
There is no substitute to long-term, wisely selected investments.
Brief flirtations at the stock market are as successful as brief flirtations at relationships. They give you a temporary kick and leave you nowhere.
The only people who make love all the time are liars.
Unrealistic expectations always lead to further disappointment.
However much in love you are, no relationship is rosy all the time; there will be times when you hit a low.
Investing in stocks is much like a relationship. The market will go through its share of highs and lows. The key is to hang on.
The stock market is for the long-term players. It is perfectly fine to lose money at times if, in the long run, you make money.
Set longer time frames for evaluating your performance and then analyse your decisions.
Perseverance works, be it in a relationship or in stock investing.
If you give as much attention to choosing your investments as you do to choosing your life partner, adverse situations eventually work themselves out. As testament to the fact, when asked about the right time to sell a stock, investment wizard Warren Buffet said, "Never!"
You will make mistakes, irrespective of whether you are investing in a relationship or in a financial instrument.
Even if you claim to be a hit with the ladies, think again. Try counting the number of blunders you made till you achieved the perfect and fancy candle-lit dinner with the right wine. Recall the number of pick-up lines you attempted before you hit on the right one.
So, even if you zero in on 10 stocks, you may have four that just don't make any money. Initially, when you start investing, you may have more 'wrongs' than 'rights'. Learn from your mistakes and move on.
Success in love, like in investing, depends largely on the state of the mind. Don't get deterred by initial setbacks. Maintain an objective perspective towards the situation and make judicious changes.
The boon and bane of investing is that one calculated risk that results in a massive profit can make up for several small losses.
Don't let the short term glitches get to you
Sometimes, my girlfriend is thrilled if I just hand her a rose. But do so on a birthday or an anniversary and there is hell to pay. That's the time when a bouquet is more appropriate.
When she asks me if I think she has put on weight, I dare not be too outright in my answer.
The point I am making is that there are many factors that go into keeping a relationship smooth. Often, you just make the wrong move or take the wrong step. Don't fret. Things even out over time.
I remember January 4, 2005, when the Sensex touched a high of 6696. For no apparent reason, it kept fluctuating in the days that followed.
On January 12, Y V Reddy, governor, Reserve Bank of India, suggested a tax on foreign institutional investment to check the volatility in the stock market.
Like a jilted lover, the Sensex pouted for a while. And how!
It touched a low of 6070.
As if on cue, Union Finance Minister P Chidambaram soon entered the scene to soothe frayed nerves. He said there was no proposal to limit the inflows or tax them. G N Bajpai, chairman, Securities and Exchange Board of India, echoed the finance minister's assurances.
The Sensex grudgingly inched to a high of 6242 on the next day, January 13.
The wise investors hung on. And reaped big time gains as the Sensex continued its upward climb.
Ignore the short-term glitches and temper tantrums. And yes, learn from your mistakes!
Love (like money) doesn't make the world go round. It just makes the ride worthwhile.
No doubt, sometimes you do get taken for a ride. Then again, that's just part of the game.
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