Sunday, January 23, 2011

Yoga for Investors

Photo Courtesy: Tanita Jha
What if I told you there was an asana ( which is another name for a Yoga Pose) that would make you a better investor?

There really is.

If you practice this asana day in and day out, year in and year out, your investments will bring you more fruitful results.

Don't believe me?

When I found out about this asana, I was skeptical.

I didn't think it would work.

But I decided to give it a shot, anyway.

After faithfully practicing it for a few years now, I am convinced it works.

Ready to be let in on this secret asana?

It's called "Sitting on Your Hands Asana".

You will require the following to practice this asana.

First, you must be invested in a diversified basket of stocks, bonds and money market instruments.

You can throw in a small portion of precious metals as well. (I have listed a few resources at the end of this article for those who need help in building a portfolio).

Then you need a comfortable chair.

Note: This asana requires your hands to be immobilized for a lengthy period of time, so if you have carpal tunnel syndrome or arthritis, you should practice this asana after consulting with your physician.

Ready?

Ok, here we go...

Stand up in front of your comfortable chair.

Putting your hands behind you, lower yourself on to the chair so that you are seated on your hands when you sit on the chair.

You are now in the "Sitting on Your Hands" Asana.

This is the most effective asana for investors, once they have got their diversification and asset allocation right.

You should practice this asana daily.

You can add a chant "I Will Sit On My Hands", "I Will Sit On My Hands" for more impact.

But you MUST practice the asana every day.

When you see the market go up and down wildly...Sit On Your Hands.

When Nouriel Roubini and Meredith Whitney strike terror in your heart on the CNBC airwaves...Sit On Your Hands.

When a friend gives you a hot stock tip...Sit On Your Hands.

When you see some ads for some tempting High-Yield opportunities...Sit On Your Hands.

When a dear relative tells you about her day-trading success...Sit On Your Hands.

When an Options Trader tells you about the easy money he makes through trading options...Sit On Your Hands.

When the stock of a well-run and established company in your portfolio takes a dive because of a less than stellar quarter...Sit On Your Hands.

When you are tempted to cash in on your winners and hold on to your losers...Sit On Your Hands.

When the Republicans scare you about tax increases on capital gains, dividends and income and the Democrats scare you with more government spending...Sit On Your Hands.

Unless you really believe you know something others don't (and if you do either you are a genius, or it's  illegal)...Sit On Your Hands.

The "Sitting On Your Hands" Yoga Pose will protect you from your own worst enemy...

YOURSELF!

Note:  You should repeat the "Sitting On Your Hands" asana until you have internalized it.

Once you have, you can put your Lululemon Gear and Yoga Chair away.

But I will leave you with one final thought.

John Bogle of Vanguard says "Investments do better than Investors"

Wonder Why?

Simple.

Because few investors have mastered the art of "SITTING ON THEIR HANDS!"

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