Sunday, March 30, 2008

Right approach

Sometimes a slow gradual approach does more good than a large gesture. - Craig Newmark (1952 - ), Keynote Speech, SXSW 2006

Incremental evolution, gradual refinement, pilot project etc. can be used to describe the above quotation. 'What good is a big splash? All it does is make a big sound and get people around soaking wet.' Is it not?

For any endeavor, it makes sense to start small, looking for immediate feedback and correcting the course as we go along. This is so pertinent to small investors that they better have it inscribed on their bathroom mirrors. Sometimes when people get carried away by the news of killings made by some big bulls in the stock market, small investors run with all their life time savings and invest. Regardless of amount of money you have, it helps to understand the system by using some dummy trading systems and test our strategy. Quite a few sites on Internet offer such facility. For a small fee, you can access trading platforms, trade as though you are playing with real money, learn valuable lessons and then start gradually investing little by little. Making a big splash in the market is going to get you literally wet because after you lose your shirt and other proverbial garment in the market, aren't you going to get real wet? On top of it, if the big bang of bursting market bubble also occurs, it is bound to ring in your ears for a while.

Another drawback of starting any activity on a grandiose scale is the difficulty with getting some instant gratification. Good or bad, instant gratification is the best sense of accomplishment. So, we need it. On grandiose projects when the first milestone is so far and difficult, it is easy to give up at the first obstacle. To avoid this we can start small and maintain a steady pace.

Small is beautiful. All good things come in small packages.


Powered by Qumana

No comments: