Opening is Overrated

Each morning I receive a email from the institution that does equity broking for me. The mail, without variation, foretells how the Indian equity markets would open on that day. There are three variations

  1. Indian markets are expected to open flat
  2. Indian markets are expected to open strong
  3. Indian markets are expected to open weak

In the last two instances the cause is ascribed to “global cues” while in the first case it is generally the “lack of global cues”. We shall refrain from discussing the inanity of a message such as this (or maybe park it for another day) but why this fixation about “opening”? What does opening get us? Other than a burst of bunched up activities pent up from a period of inactivity it signifies nothing much

Opening is overrated. As much in stock markets as in life

What is of consequence is closing – the point where the tape meets the chest (or it does not). Heard of any broker that predicts how markets will close? They don’t. Too complex, they say. So much happens during the day that makes the closing a fuzzy thing. It is different for human beings though – we most often know how the closing should be. But then we waste too much effort on the opening. An inauguration, a project kick-off meeting, an unveiling, cut the ribbon, a kick off dinner. Wasteful. Instead focus on the closing

It is how you end that matters. Opening is overrated. As much in stock markets as in life

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