Choose friends VERY carefully

Nothing beats good friends. There is a psychological theory that says you become more like
your friends. I don’t choose my friends on basis of weather or not they are rich or poor, rather
weather or not I can learn form them. In my experience I learned from everyone from Bill
gates to the Tatas, from a spider on the web to the beggar of the road.
In the world of being investing, the worst thing probably you can do is walk with the mob.
Mob enters the last and it’s the mob which gets slaughtered. They usually know when the
profit has already been made. Let me explain. You make a profit when you choose to buy and
you make a loss when you have to sell. Suppose a stock is at 1000 now , but no news, rich
ones enter at this point, and take the stocks to 10000 then they cash out, at this point the mob
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starts to enter. Saying this stock has given profit of 1000% and they want that part of the profit
too. They don’t realise that for a stock bought at 1000, price of 10000 is a profit of 1000% but
for purchase of 10000, it has to go to 20000, just to give you 100% return. If the price moves to
15000 the first person makes a profit of 1500% while the person who entered at 10,000 made a
profit of 50% only. It will take some time for you to understand, for now read it twice thrice,
until you understand it.