Investing in the Stock Market is Boring

Posted by Fitz Villafuerte under Investing on January 3, 2013

“The Philippine stock market reached a new high just today,” I told a friend whom I know began investing in the stock market last year.

“Yeah, I heard,” he answered.

“So how are your investments doing?” I asked.

“Very good actually,” he replied.

“So why don’t you sound too happy about it?” I inquired, sensing the lack of enthusiasm in his voice.

“Well,” he hesitated a bit, then finally told me the truth. “I didn’t expect that investing in the stock market would be boring.”

For a moment, I got amused and laughed at his sentiment. But then I realized his concern was serious, so I told him this:

“Indeed, investing in the stock market is boring. And that’s the reason why I love investing in it, because it doesn’t take away so much of my time and energy to do.”

boring

When you hear the term “stock market”, the first image that comes to mind for most of us will be the chaos that we see in the movies and television – people shouting and talking on the phone, passing around countless pieces of paper, while the stock ticker marquees above all of them.

In reality, that scene only happens for a few hours on the trading floor; and because of all the technology and automation, most of the chaos now happens virtually, inside computer networks and on the internet – which means all the yelling and paper-throwing is almost a thing of the past.

“Almost” because it still happens in some places; but in most countries, including the Philippine Stock Exchange, it’s now drab and peaceful inside.

In any case, what actually happens inside the stock exchange doesn’t really matter. Because what’s important is that you understand how the stock market works, and why investing in it should be boring.

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bored

Boring Is Good

If you want excitement, go to the casino. But if you want a quiet and steady way to make money, then invest in the stock market (or in a UITF or mutual fund, for that matter).

In many ways, we are conditioned to think that anything that’s “boring” is bad. However, when it comes to investing, the more boring it is, the better – because at the very least, that means you’re not losing money in the investment.

Think about it and I know you’ll agree.

Of course, there are “more exciting” strategies you can do in the stock market (i.e. trading stocks) and there are “more exciting” investments out there (i.e. currencies).

But both require higher risk appetites, and if you’re someone who can’t emotionally handle losing money, then cost average investing is your key to peace of mind.

Buy stocks and hold. Repeat regularly for many years, then sell and take profit.

It’s a boring routine, but one that’ll give you enough wealth to live a fun and exciting life in the future.

More exciting articles coming here soon, don’t miss any of them by simply subscribing to Ready To Be Rich today.

This article is now part of the series: How To Invest In The Stock Market

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Photo credits: rashdan and jamelah


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13 Responses to “Investing in the Stock Market is Boring”


  1. Enzo says:

    I thank Fitz for his continuous effort in educating Filipinos about stock market in a simple way for everyone to easily understand the topic. Without proper knowledge and guidance, investing in the stock market can be dangerous.

    Guys, I also suggest you visit and join the TrulyRichClub founded by Bo Sanchez because he offers wonderful guidance. That guy really changed my life in more ways than one. He gives you monthly updates about what’s going on in the stock market and what specific companies we should be investing in. He also sends you videos and audios which are really helpful in feeding our minds with abundance mindset. If you want the same life-changing experience, I suggest you check it out.

  2. Rogie says:

    I hope he won’t change his mind about the market once it gets exciting. hehehehe.

  3. lois says:

    I already experienced the same thing in 2011, I got really bored that I bailed out just a few months before the market was seen rising in 2012. It was a really bad decision for letting my emotions rule over me. but it was also an enlightening experience, now I can say iam a more mature investor! 😉

  4. java says:

    Greetings Mr. Fitz:

    I’m just wondering, since you are also an IT, how secure and safe is the Stock market network from hackers and virus? And from Stock Manipulators just like from movies????

    Just curious 😉

  5. Fitz says:

    Hi java,

    I believe it’s pretty secure but of course, nothing is ever completely safe.

    Moreover, I don’t think stock manipulation will be a problem because there are lot of security measures implemented in the system – we are paranoid that way – and there are a lot of regulations in place.

    However, for my personal security, I always print out a hard copy of my stock transactions, to serve as proof of my ownership just in case (knock on wood), the servers of my stock broker crashes.

    Also, I generate and keep a monthly report of my portfolio – to keep track of my progress, but also as another proof of my account.

  6. jom says:

    Good times Mr. Fitz:

    Since Stock Market today has impressive performance, prices are up. Is it ok to invest today? or wait for the market correction? Im planning for COL Peso Cost Averaging.

  7. Fitz says:

    Hi jom. Since you’re planning to cost average, you should know that companies recommended for COL’s EIP tend to have shallow retracements, so waiting for market correction won’t have that much impact.

    My personal advise, invest now because while the market is indeed poised for a correction, it can still go up further and then retrace back to its current prices. If that happens, then you just missed several months where you could have already invested.

    Of course, the market could suddenly correct after you invest, but since you are cost averaging, there will be minimal impact because you can ride the retracement.

  8. […] allure of trading is very high, primarily because many find investing too boring. There is a sense of exhilaration in trading, and a more heightened feeling of self-satisfaction […]

  9. Dustin says:

    Medjo di ko pa rin magets ang stock market. Sabi nila sugal daw iyan. Meron ba explanation to make it short kung paano ka kikita ng money sa stock market

  10. Fitz says:

    Hi Dustin. The stock market becomes gambling if you don’t know what you’re doing.

    Please take the time to read the articles here if you want to learn more about how to make money from the stock market:

    How To Invest in the Stock Market

  11. […] happen to read my post on how my stock portfolio looks like, you would say that I’m a very boring […]

  12. Gaynelle says:

    The book can be bought for less than $15 and is an entertaining and informative read. You can sell almost any item at a flea market if the price is right. That will make us far superior to even the humans who may ride horses but share no spirit with them.

  13. […] long-term investing in the stock market is not hard to do because you basically just buy shares of a good company, hold on to it, and watch […]

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