Faraaz Irfan Chapra - Markets & Investors Behaviour with Money

MARKET'S & INVESTOR'S BEHAVIOUR WITH MONEY

BEHAVING WELL, CAN MAKE YOU A LOT OF MONEY

FARAAZ I CHAPRA

Copyright Faraaz I Chapra All Rights Reserved.

ISBN 978-1-63904-110-7

This book has been published with all efforts taken to make the material error-free after the consent of the author. However, the author and the publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.

While every effort has been made to avoid any mistake or omission, this publication is being sold on the condition and understanding that neither the author nor the publishers or printers would be liable in any manner to any person by reason of any mistake or omission in this publication or for any action taken or omitted to be taken or advice rendered or accepted on the basis of this work. For any defect in printing or binding the publishers will be liable only to replace the defective copy by another copy of this work then available.

For,

My Parents, who taught me My Sisters, who guided me My Mentors, who trained me

Contents

Foreword

Preface

Acknowledgements

1. Stock Markets
2. Money And Wealth
3. Mr. Excessive Spending Sindrome & Mr. Pinchpenn
4. Rich Man n A r rdx
5. Undr rtng Th wr f mundng
6. Htrn And Change
7. Atthmnt To Social Proof
8. Wht D u D When ur Fnnl ln Brk?
9. An Attachment To Fnnl ntrtnmnt
10. Living Cnul
11. M I Borrow A Cup f Sugar?
12. A New Prtv
13. Mn Mttr
14. A Vr Cnu Decision

v

I am very delighted to write the foreword of this book, not only because Faraaz Irfan Chapra has been an old friend, but also because I admire his ideas and way of thinking about business and marketing. I am a businessman and I truly believe that his way of handling problems helped me a lot to become who I am today. Furthermore, I still remember when I was on a trip to India for a business deal and one of my friends introduced him to me. It was our first meeting, but I became a fan of him. He was the man who changed my primitive thinking about marketing and dealing with business. His data analysis skills are out of this world.

In this book, he presented his ideas about how different investors have different points of view and psychology about investing. It reveals to you the basic concepts of the stock market and helps you understand how different investors behave about their money. You may have many books on investors and stock markets, but the best thing about this book is that if you are a beginner, and you are not familiar with basic concepts of marketing you can get a complete idea to make your entry into this world full of mind games.

I am a businessman and with my experience of this many years, I can tell you that this mans ideas about finance and dealing with data problems are unmatchable. The purpose of writing this foreword is to admire my friends work in the field of business and finance.

Tayyab Rafiq 2021

As soon as I entered this world of business and finance, I had no idea that this is all about the mind games and psyche of people. This book is not just a collection of ideas that came to my mind during my work, it is the essence of my experience of years in this field. I always faced difficulty when I was a beginner as a data analyst about the behavior of clients and investors. Each day taught me a new lesson and this book is an extract of all those lessons. Stock markets are not just a one-day game it took me years to understand how this works and here is its result.

The main purpose of writing this book was to give people a basic concept of how the stock market works and why different investors have a different way of thinking about investing their money in business. I want to help all those beginners who are struggling with issues of understanding the psychology of this stock game as I struggled many years ago. The best thing about this book is that it tells us why we always associate expensive things with high standards and judge people by their belongings.

I have been in this field for about 10 years and this book is not just a handful of thoughts. I listened to successful people. I observed investors for years to understand their psyche. I have to face many failures and losses during this journey. I always noted different lessons I learned during a day, discussed them with my seniors, and after a lot of thinking I finalized them to write in this book. The most difficult part of this book was to write the behavior of different people towards their money and investment because understanding ones mind is the most difficult thing in this world. All these years and am still dont

PREFACE

C OMPLETELY READ THE mind of someone next to me.

My father was my biggest inspiration while writing this book. His ideas and experience of years helped me a lot in giving pictures to basic concepts. My clients, colleagues, and my seniors gave me the experience and understanding so that I can write this collection of bright ideas.

Faraaz Irfan Chapra Maharashtra, India 2021

Writing this book was not a task and it demanded a lot of effort. Without a good friend who supports you in your struggles, everything feels very hard but in this journey of mine, my father Irfan proved to be a great friend and mentor for me. I couldnt achieve this goal of writing a book without his supervision and valuable advice. I would like to thank him for all those enriching and priceless conversations over the years which made me able to perform this task. With his experience of years, he always helped me see the problem from different angles and this helped me in writing this book as well as in dealing with my problem in the real world.

I would also like to thank James Montier, Hersh Shefrin, Michael M. Pompian, and all those authors who wrote on the topic of behavior and finance because they proved to be a great help and also an inspiration that kept me going. Seeing their work always motivated me to write something extraordinary.

In the end, I want to thank all my family members and all those people who supported me and helped in every aspect during the journey of writing this book.

Faraaz Irfan Chapra

Personal finance...is more personal than it is finance.

Tim Maurer

The investors chief problem and even his worst enemy is likely to be himself.

Benjamin Graham

The irony of obsessive loss aversion is that our worst fears become realized in our attempts to manage them.

Daniel Crosby

ONE

Stock Markets

Bull and Bear stock Market - Just like a spot f adventure, the tstockarket presents a nr f rk and opportunities, trouble in th sense f uncertainties mkng the odd of lng hrd-rnd income and rtunt n th sense f inherent blt f tl gain. It is a commonplace to hr stock market xrn lk the bull ld g n th mrkt td...,