5 Reasons Why You Should Stay Away From The Stock Market

Posted by Fitz Villafuerte under Investing on November 25, 2013

The Philippine stock market index has been on a losing streak since March of this year.

A lot has been happening in the country right now, and the economy is in my opinion, stalled and “confused” about where it should go.

While many believe that the fundamentals are still positive long-term, recent events such as the natural calamities we’ve experienced, are definitely affecting the performance of equities.

So if you’re thinking of going into the stock market, then here are 5 reasons why it might be a good idea to simply stay away from it for now.

1. You’re confused about how the stock market works.

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If you can’t explain how the stock market works to a 12-year old kid, then you have no business to be there.

Learn and understand how it works first before putting your money in there, seriously.

2. You’re too afraid to lose money.

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Nobody wants lose in the stock market, but if you’re too afraid because that’s where all your hard-earned money is, then you should learn how to diversify properly.

More importantly, be sure to build your emergency fund first before investing in the market.

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3. You’re greedy and just want more money.

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If your goal is to simply have more money, then you’re doing it wrong. The right way to invest is to have an objective, a target amount, so you’ll know when exactly to sell your stocks. You invest to be able to afford your dreams, not just grow your bank account.

4. You’re too lazy to care about business news.

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When you buy stocks, you become a part-owner of that company, which means you should act like a business owner and know what’s happening with the company, in the local industry and in the global economy. Getting these perspective will help you make better investing decisions.

5. You’re into the stock market just to brag about it.

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Yes, it feels good to be an investor, but it’s not something you do just because you want to brag about it to your friends. And somehow, the stock market always finds a way to humble arrogant investors, so don’t be one.

I hope you enjoyed today’s post. What about you, anything else you can add to this list? Share them below in the comments section.

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3 Responses to “5 Reasons Why You Should Stay Away From The Stock Market”


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  2. Susan says:

    Hi Sir Fitz, I have two questions: 1. Since your saying that it is best to stay away from stock investing for now, what would you then recommend to invest to given the current market/economic situation in the country? 2. For someone who is already 40 and working as freelance, what kind of investment should i open to prepare for my retirement? Ive just finished paying off all my debts and now preparing my health insurance. Though i still have to work on my emergency fund but i would like to start thinking of investing for long term retirement. Thanks

  3. Fitz says:

    @Susan, complete your emergency fund first. Then learn how the stock market works, before investing in it.

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