By Baniya Beast,
IPL is not meant for you, if you’re long-term equity investor.
T20 cricket is fast-paced, high-drama & filled with lot of uncertainty. After religiously following couple of IPL seasons, I made mind that long-term investors in equity market should stay away from watching IPL.
You would think that how does watching IPL cricket affect equity market returns? And in the first place does it really impact returns?
It does. Though I do not have statistics dug out on this topic to back it up.
If you’re ardent follower of IPL then you’ll remember this game where Rajasthan Royals lost a winning game against Mumbai Indians at Wankhede (Corey Anderson scored a magical 95 runs of 44 balls). This just shows that T20 format is hard even for legendary cricketer Rahul Dravid. Nobody would have ever imagined him to throw-off his cap in anger & denial of reality.
Dravid is one of the sportsmen with high patience level and he even failed to hide his emotions. IPL is a shark!
IPL damages your investing returns in three ways –
1. High expectations
Sometimes a strike rate of even 200 is short to win you the match and even though batsmen has done his job, you still loathe him. IPL creates illusionary & unreal expectations which are hard to come by in equity markets.
2. Fast-paced & quick outcome
T20 is high-intensity cricket filled with 4’s, 6’s, superover, free hits and what not. You’ll want your stock to hit upper circuits since IPL has made you habituated with this & you feel that no wrong expecting it.
3. Behavioral mess
IPL will not even make you expect upper circuits but expect them quickly. Just after buying the stock, you’ll want to see them in green. IPL kills your patience skillset. It ruins you to be equipped to pass through trough & low-action period.
IPL will make you shift from being long-term investor to intraday speculator.
You’ll think of a company as stock price & be never able to hold good quality stocks because they go through patches of in-action and absolutely no massive change in prices.
My reckoning is that you gotta quit watching IPL if you wish to excel in the field of investing.
In case you plan to reduce IPL watch-time or otherwise then do let me know at email@example.com
This article was originally published by author Baniya Beast.