5 Reasons Why You Should Stay Away From The Stock Market

Updated: November 27, 2020

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 to 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.

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 the global economy. Getting this 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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5 comments

  1. 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

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

  3. Honestly, it is difficult for me to stay away from the market. Yes, it is true that my family gets to enjoy the financial reward from my night time option selling activity on the US markets. On a more personal level, I enjoy getting up for my quiet time at night and the challenge of trying to time the weekly high to sell call options for income. No person on earth is perfect at timing, long or short term but some folks are better than others at applying this skill. The actual option selling is almost mechanical once I determine the price point at witch I will begin hitting the sell button.

    So, you see, trading is both mind exercise for this retiree as well as a very profitable sideline business when practiced with consistency. By the way, I can not ever be fired from my “job” nor are there mandatory retirement age limits. The ONLY thing that can stop you is death or blowing out your account. No one can prevent the former but market savvy and wisdom will certainly prevent the latter. Disabled folks who may have difficulty in many countries getting access to a place willing to hire them will have no barriers other than internet connection and opening a trading account. All are welcome to participate and carve out their own special niche.

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