Sunday, October 31, 2010

The Stockmarket & The Six Blind Men



The Stockmarket reminds us of the story of 'The Six Blind Men And The Elephant' about how our perceptions can lead to totally different realities.

Once upon a time, there were six blind men who wanted to learn what an elephant looked like, since none had ever seen one before. So they took a trip to the forest to discover what an elephant really was like.

The first blind man approached the elephant from its firm flat broadside and bumped his head. He declared to his friends that, "The elephant is just like a wall,"

The second blind man reached out and touched one of the elephant's tusks and said, "No, this is round and smooth and sharp - the elephant is like a spear."

Intrigued, the third blind man stepped up to the elephant and touched its trunk. "Well, I can't agree with either of you; I feel a squirming writhing thing - surely the elephant is just like a snake."

The fourth blind man was of course by now quite puzzled. So he reached out, and hugged the elephant's leg. "You are all talking complete nonsense," he said, "because clearly the elephant is just like a tree."

Utterly confused, the fifth blind man stepped forward and caught one of the elephant's ears. "You must all be mad - an elephant is exactly like a fan."

The sixth man approached, and, holding the elephant's tail, disagreed. "It's nothing like any of you say - the elephant is just like a rope."

Thus the six blind men all perceived one aspect of the elephant and were each right in their own way, but none of them knew what the whole elephant really looked like.

The moral: Depending on one's perspective reality may be experienced and viewed differently.

The Stockmarket often poses itself like the elephant to many investors. Like the six blind men and the elephant there are differing predictions of what the market will do, and how to invest in it, whether you do or not at all.

But the market seems willing to accommodate the wide variety of even opposing beliefs. Despite the wide array of opinions on the market, we still find investors with contrasting opinions making money on the market at the same time while others make losses.

There's one thing all investors have in common, and the only reason why anyone might invest in the market. That is to make money.

So the most important thing for you is to ensure that your perspective of the market is serving you.

If it is not, then look for the perspective that will bring you the positive outcomes you want. The best and fastest way to do this is to find someone who has got it right and model what they have done. Find out what their perspective is, what their method and strategies are and follow this until you achieve success.

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