“I’ve lost money in stock markets. Is there something in my handwriting which shows that?” a Mumbai-based banker asked me in early 2018 when he met me for a session of handwriting analysis.
“I do invest in the markets, but I’m no expert,” I told him.
“I know the markets fairly well. Still, not much success. There must be something in my handwriting…”
“Do you directly invest in stock markets?” I asked even as I scanned his handwriting sample.
“Yes. I have a demat account.”
“Are you saying you never made money in markets?”
“I have. But very little. I either sell too early or too late. To be honest, I often become nervous in times of volatility. Other times I sell my winners quickly and hang on to losers,” the 45-year-old client said.
“How long have you been investing in markets?”
“About 17 years. Mostly suffered losses.”
“Why don’t you quit then and move to safer investment avenues?
“Because returns in the safer investments aren’t great. I won’t be able to recover my losses. Plus, stock markets are exciting,” he said with a wide grin.
Stock market wizards have always reiterated the need for the right temperament for investors.
The client and I spoke for another 20 minutes on the subject, during which he also gave me a few nuggets of wisdom on various investment options, discount brokerages, intraday strategies and how to invest in markets.
I told him clearly there’s nothing in handwriting analysis, which points specifically to someone’s success or failure in stock markets.
What handwriting analysts can see is the writer’s emotional make-up, which could indicate his temperament and how he is likely to respond to ever-present uncertainties in the stock market.
I looked at his handwriting carefully, and concluded that he didn’t have the right temperament to handle the ups and downs of equity markets.
At the end of the session, I also gave him a teeny-weeny piece of advice. I will tell you what it was towards the end of the article.
But before that, let’s find out what I saw in his handwriting and whether your own handwriting is suitable for investing in stock markets.
Do you have the right temperament?
Stock markets make you nervous, birdie?
Stock market wizards have always reiterated the need for the right temperament for investors. Listen to one the famous quotes by Berkshire Hathaway CEO Warren Buffett:
The most important quality for an investor is temperament, not intellect.”
Any successful stock investor will tell you that no amount of intellect can replace the right temperament. The right temperament, according to thebalance.com, includes:
- Patience
- The emotional capacity to separate market fluctuations from underlying real value
- The ability and willingness to stick to a plan while ignoring the crowd
These three points sort of sum up what the behaviour of an ideal investor should be.
Still, there are plenty of smart equity investors who cannot adhere to them despite being familiar with how stock markets work, how valuations are calculated and also having access to good-quality research.
Why? Because they lack patience and composure.
In other words, they have the right temperament. They forget what the Oracle of Omaha said on another occasion:
No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”
The bottom line: do not rush.
Handwriting test: What’s the right temperament
The right temperament for stock markets is all about maintaining your composure.
In handwriting analysis, a person’s ability to maintain composure can be gauged by the slant of the writing.
Handwriting slant reflects the writer’s emotional make-up and how he is likely to respond in any given situation.
For example, according to handwriting analysis, the right slant belongs to a moody and impulsive person.
On the other hand, those with upright and left-leaning handwriting are more likely to use their judgment before making a move or arriving at conclusions.
Handwriting with extreme right slant. Photo: graphology.it
Impulsive personality
If you write with an extreme right slant, it indicates that instinctively you are more prone to making impulsive decisions and your doctorate is in ‘acting first and researching later’. Most failed investors are guilty of that.
They invest first in a stock after listening to ‘experts’ on TV or getting tips about a potential ‘multi-bagger’ and then research later. That’s financial harakiri. Ask any financial advisor.
There is, however, one exception: the direction of the baseline–the imaginary line on which letters rest on unruled paper.
If the baseline is reasonably straight, it means that the writer is able to control some of his impulses.
Handwriting Baseline: Straight (top), slightly wavy (middle) and very wavy. Pic: viewzone.com
If the handwriting baseline is too shaky and wavy and it also has an extreme right slant, it indicates that the writer’s emotions are unstable and out of control.
Therefore, such writers shouldn’t be found even within one-mile radius of the stock market.
And unless such writers are too high on luck, which might help them once in a blue moon, they are unlikely to get their investment calls right.
As an equity investor, they are more likely to make a decision in haste or mistime their entry or exit.
Various degrees of right slant
At this point, you have to understand that people’s writings lean to the right at various degrees. Not every right slant is considered extreme.
To understand slants better, refer to the emotional gauge below. The DE and E+ slants are considered extreme.
Emotional gauge used in analysing handwriting
By the way, my banker client’s handwriting did have an extreme right slant along with a wavy baseline.
You’ve the right investing temperament if…
In my experience as a handwriting analyst, I have realised that people whose handwriting baseline is reasonably straight and have an AB, BC or CD slant, do pretty well in the area equity investments.
And the icing on the cake is when their handwriting also shows they are intuitive. Breaks between letter connections point to writer’s intuitive capabilities.
In handwriting analysis, there are several other indicators of emotional makeup of the writer.
Unfortunately, we cannot discuss them all here. But broadly speaking, your handwriting slant and baseline direction should give you a fair idea.
Recourse for right-slant investors
I reiterate at this point that investors should always remember that stocks are not for everyone.
If you don’t understand the stock market, probably best to avoid these investments altogether until you learn more about how the markets work and how to control your emotions.
If you do understand but get too nervous, then stay out of the market, especially if your handwriting has an extreme right slant. You will only be losing tonnes of hard-earned money.
But stocks markets offer good investment opportunities, hence, it’s not a good idea to stay away from it entirely.
If you do not have the temperament to invest directly in equities, hand over the money to professional money managers, such as mutual funds. That’s what I advised my client.
Many compulsive traders and investors find stock markets quite exciting. But it’s not a good idea to waste your money on experiencing those excitements.
I personally take a lot of inspiration from what American economist Paul Samuelson said:
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”
Disclaimer: One element of handwriting may be analysed at a time, but always look at the entire handwriting sample before arriving at any conclusion.
