Once a father & son were walking through the mountains. Suddenly the kid fell & got hurt & screamed, Aaahhh To his surprise, he heard the voice repeat somewhere in the mountain, Aaahh Curious about the voice, the kid yelled, Who are you? He received an answer, Who are you? Angered, the kid screamed, You Coward... Once again, he received the same answer, You Coward... The kid asked his father, What is going on? The father smiled & screamed, You are a Champion. The voice answered You are a Champion. The boy was happy but surprised. His father explained It is an echo. Whatever you say will be repeated. Our life is similar, whatever we receive is simply a reflection of our actions.
What we learn from this:
An echo works both ways, you speak positively, it will give back the same positivity. If you speak negatively, it will be equally negative. Investing too is like an echo & reflects the way we behave with the market. In the short term, the market behaviour is very difficult to understand (volatile). Accordingly, those who try to time the market find it very difficult to make gains. On the other hand, the market volatility substantially ebbs over the long run.
Thus the market behaviour over the long run is much more predictable. Accordingly, those who are patient & wait, have the potential to make larger gains over the long run due to the power of compounding. Thus the