Over Analysis = Paralysis !!!
In June(2013) there was an investor conference sponsored by CNBC-TV18 in Mumbai, which was attended by industry's top investment names. Among them was Madhusudan Kela, the Chief Investment Strategist at Reliance Capital. He mentioned one aspect of the stock market while discussing on current economy and market, which made me think on it for a while.
He mentioned that in stock market, we should not be analyzing too much about the stocks. This doesn't mean we should avoid analysis of stocks at all. But the analysis should be limited to some extent. If we analyze the stocks too much, we may not be able to invest. This is because when we analyze too much we get into a situation, where in taking decisions becomes very difficult. Hence, too much of an analysis leads to paralysis of decision making. We loose out on the investment opportunities in such a situation. Hence avoid over analysis and make investments based on simple analysis, to make profit in the stock market.
This was good advice for stock market players. When I think about this advice, I feel this is true in our personal lives too. We face many situations life, when we face disappointment, failure, let down etc. During those situations you feel like nothing is going your way and you feel lost in the scheme of things. The more you analyze the situation, the more you get into the trap and go down deeper by the day. You just feel, why me? This paralyses your ability to face the situation bravely and kills your self-confidence most of the times. In those situations, we should stop over analysis of the situation and go along with the flow of life. Learn from your mistakes and be brave to face the situation. Analyze only what is needed, don't get into over analysis and flow with the wind. When you do this, you find great relief and many a times, things turn out to be good, than you anticipated and you come out a winner.
Hence the phrase, "Over Analysis = Paralysis" !!! Just chill and enjoy what life has to offer:-)
He mentioned that in stock market, we should not be analyzing too much about the stocks. This doesn't mean we should avoid analysis of stocks at all. But the analysis should be limited to some extent. If we analyze the stocks too much, we may not be able to invest. This is because when we analyze too much we get into a situation, where in taking decisions becomes very difficult. Hence, too much of an analysis leads to paralysis of decision making. We loose out on the investment opportunities in such a situation. Hence avoid over analysis and make investments based on simple analysis, to make profit in the stock market.
This was good advice for stock market players. When I think about this advice, I feel this is true in our personal lives too. We face many situations life, when we face disappointment, failure, let down etc. During those situations you feel like nothing is going your way and you feel lost in the scheme of things. The more you analyze the situation, the more you get into the trap and go down deeper by the day. You just feel, why me? This paralyses your ability to face the situation bravely and kills your self-confidence most of the times. In those situations, we should stop over analysis of the situation and go along with the flow of life. Learn from your mistakes and be brave to face the situation. Analyze only what is needed, don't get into over analysis and flow with the wind. When you do this, you find great relief and many a times, things turn out to be good, than you anticipated and you come out a winner.
Hence the phrase, "Over Analysis = Paralysis" !!! Just chill and enjoy what life has to offer:-)
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