As of 2020, the Stock Market is becoming more fascinating for teenagers than ever, and almost every one of them thinks they can get easy money from it.
But, the Stock Market is not some “Get Rich Quick” scheme, you may even have to sell your house if you’ve invested heavily without any knowledge and the market sinks to the bottom of the ocean(Search Google and you’ll find these stories of people).
Now, As I think and the study suggests, Here are the 3 main reasons you might have to turn your back on the stock market before incurring some serious losses.
So, Without getting into technicals, Let’s get started…
1. YOU’RE IMPATIENT AF!
Warren Buffet defines the stock market as a tool/medium to transfer the money from the “Impatient” to the “Patient”. The key skill required to get success in the stock market is your Emotional Discipline, you should have total control over your emotional behavior. High “EQ” is more beneficial than a higher “IQ” if you want to get into this; build an emotional discipline first.
2. YOU WANT TO GET RICH QUICK!
As I said earlier, the Stock market is not some get-rich-quick scheme that’ll make you a millionaire overnight(Yes it can but it’s highly unlikely). If you invest your hard-earned money in stocks, you HAVE to look for the long term benefits, and by long term I mean “decades”, There’s no such thing as getting rich quick “GROW UP!”.
3. YOU’RE TRYING TO PREDICT THE MARKET(LoL)!
Oh! I “think” that share will rise in the next 2 months, I “think” the market will fall in the next fiscal year, if these phrases come to your mind, “Move out or gain some knowledge first”. There has been no human alive to date nor will be; many tried and failed. It’s a game of emotions and you can’t read people’s emotions, as simple as that!
If you’re trying to predict the market, ‘You’re gambling with your money” and if you do, better gamble in a Casino, the rewards are better there.
Bonus- BUT I STILL WANT TO GET INTO SHARE MARKET
The stock market is not as risky as it seems to be. It’s just that you should have control over your emotions and have patience in the “Bear run” of the market.
HERE ARE 5 TIPS I CAN GIVE YOU IF YOU WANT TO BEGIN YOUR JOURNEY IN THE STOCK MARKET
– Learn to read the financial statements of a company.
– Know if the company you’re investing in; is worth the price its share is selling for or not i.e. Do a proper fundamental analysis of the company.
– Always buy “Bargain Issues”(more on that later).
-Don’t follow any expert’s, family member’s, friend’s advice EVER! Do your research.
– Find a mentor who can teach you Investing.
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