How not to get fooled by stock prices

The Indian stock markets have been a roller coaster lately, creating a peculiar spectacle. Every morning, news channels and social media feeds fill up with breathless commentary about stock prices and index levels. The constant volatility has turned many investors into anxious price-watchers. They check their phones every few minutes to see if the latest price movement holds profound insight into their investment decisions. This obsession with price movements reveals a fundamental misunderstanding about what stock prices mean and how they should influence investment decisions. The problem isn't just the unhealthy fixation on short-term fluctuations - it's the flawed mental model many investors have about stock prices. Suggested read: What not to do with stock prices I observe so many investors who believe that a stock with a low price is somehow 'cheaper' and, therefore, a better buy than one with a high price. This misconception has fascinating parallels