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What am i missing some people should not own stocks at all because they just get too upset with price fluctuations if you’re gonna do dumb things because your stock stock goes down you shouldn’t own the stock at all what are dumb things selling a stock goes it goes well today’s video kind of sucks this is not the type of video i like to do on this channel usually i
Like to inspire people to invest in stock market teach people and things like that get people excited about the stock market but i feel like it is my obligation to do a video today on why you shouldn’t invest in the stock market 5 reasons why a lot of people are out there just are not fit to be in the stock market should not be investing in a stock market there are
Three-wheel ways in this world you can build wealth in my opinion for the average masses out there okay you can either start a business you can invest a stock market or you can be a real estate investor ok you’ve pretty much got to do at least one of those things to build a lot of wealth in this world ok unless you can be an executive at a really high ranking company
Or something like that right if you do all three you’re probably gonna be doing very very well for yourself so it pains me to do a video like this on why people shouldn’t invest in the stock market but i’ve just come across it time and time again that some people are just not fit to be in the stock market guess that’s the bottom line are not fit to be actual stock
Market investors out there or pick individual stocks so let’s go through all this today hope you guys enjoy it hit a thumbs up if you do and let’s get into this are you guys the first reason why you should not invest in the stock market is if you cannot handle the roller-coaster ride that is the stock market that is investing in stocks okay this is my illustration
Of our rollercoaster is somebody getting ready to ride this roller coaster most people are not fit to be in the stock market okay the average person out there just cannot handle the volatility that the stock market presents itself okay especially if you are investing in individual companies all right most people just cannot handle the fact that their their wealth
Goes up and their wealth goes down a ton and it can change literally by the day the week or the month or even the year okay we had people even in you know diversified 401 k’s and whatnot who are selling out in 2008 and 2009 at the of the market who just couldn’t handle that type of pain never mind the pain of actually investing in individual stocks right the
Average person out there just cannot handle this type of roller-coaster and i just want you to know that it is actually normal if you can’t handle this okay it is not meant for everybody not everybody is meant to handle this type of volatility in their wealth going up and down and all around okay if we took an average person out to a football field okay we stuck
Kam chancellor across from them and we said hey you’re gonna have to run this slant route you’re gonna have to catch this ball if you catch this ball here and get $100,000 here’s the catch kam chancellor’s got to come sprinting at you full speed and absolutely lay you out most people say dude i’m not even doing that for $100,000 there’s no way okay another big
Segment of people would say okay i’ll go ahead and try it but as soon as that ball started coming and they saw him chancellor coming to him they would start clinching up and they would drop the ball they wouldn’t hold on to it they wouldn’t even try to catch it they would they would pee their pants okay they would absolutely pee their pants all right but there
Would be a select few of people that could actually catch that ball hold on and take that short term pain and absolutely get cremated into the ground okay that’s a special type of person not everybody can go out there and do that right just like not everybody can handle the roller-coaster ride of a stock you know and most people if they invest $1,000 in a stock
In that stock it also goes down 10% and now their stocks worth like 900 bucks they start freaking out oh my gosh oh my gosh i lost $100 oh my gosh $100 is gone not even realizing that you haven’t technically lost anything until you sell okay you might be down on that position $100 but you haven’t actually lost any money until you actually sell okay that position
Could easily come back and you could make a lot of money over time most people i’ve just noticed cannot handle the volatility the roller-coaster ride that is a stock market and guess what i have information for you okay and the fact is though stock market will always be a rollercoaster it will always be a rollercoaster the great thing about this rollercoaster is
Over time it always goes up a lot more than it goes down okay that’s just the facts behind it but the other fact behind it is it is a rollercoaster and you’re going to be bumped all around up and down okay and you’ve got to be prepared for that vault whether it’s the greatest day ever or the worst day ever you got to be able to handle that most people just can’t
Do it guys that’s reason number one why you just should not invest in stock market let’s get into reason number two reason number two you should invest those stock market and this is especially true if you are an actual stock picker where you pick individual stocks to put your money in is if you were a lazy with doing research if you are lazy with the doing
Research you will absolutely lose a lot of money in the stock market if you’re lazy about doing research but you still want to invest in a stock market like just put your money in an etf or index fund or something like that okay where your money’s diversified around maybe you just tracks s&p 500 if you can handle the volatility of stock market but you’re not
Willing to put in the work read the 10 ks read the tank useless in a conference calls that companies are doing watch investor presentations keep up with the news of stocks if you’re just lazy like fine they like you can still be in the stock market just invest in index fund etf or something like that okay but the fact is guys if you are thinking about you’re gonna
Individually pick stocks and you’re gonna try to be successful at this you have got to have a work ethic for it okay it’s just the bottom line and this is this is true across the board for everything in life right maybe one thing that you could do and be super successful at and you could just be lazy at doing it it’s just not realistic guys you have to be able to
Put in the work i think if you want to be a successful individual stock picker and you absolutely if you can handle the volatility and you you put in the work you could be a very successful stock picker out there and you could probably make money a lot more times than you lose money but the fact is a lot of people just don’t have the work ethic to put into actual
Stock market investing or they don’t have the time okay i would say most people actually do have the time they just you know are basically lazy and they don’t want to put in the time okay they’d rather watch netflix for three hours at night then put in that you know two or three hours toward actually looking into an investment so the bottom line is if you are lazy
Don’t be an individual stock picker let’s get into reason number three why you should invest in the stock market are you guys a third reason you should invest in the stock market is i see a lot of people that will go and invest money in a stock or in the stock market in general we make a portfolio but really they need that money for something short-term okay so for
Instance though they’ll put and you know let’s they have $50,000 in savings they’ll put $50,000 in the stock market invested around in different stocks but all along in six months they’re actually buying a new home and they’re gonna need a big portion of that for a down payment on a hole at home if you were trying to if you need short term money you don’t invest
In the stock market because guess what could end up happening the stock market go to go down a bunch in the short term and also in your $50,000 just putting stocks is now 40,000 and you have to sell out because you need that to put it on it on a down payment on a home or something like that right so if you need short term money like don’t do it also i see a lot of
People that will try to invest in stocks because they want it to be their full-time income source or something like that i also don’t suggest doing that unless you have unless you have a minimum of ten million dollars in the market i don’t suggest you counting on stock market investing as your income source okay unless you’ve got at least ten mil in the market don’t
Count it as your full-time income source the stock market should be a way of building more wealth okay it should be a way of building up your wealth to bigger and bigger levels okay similar to like real estate investing you wouldn’t just buy one real estate property and be like oh i hope i can like make it on this one real estate property and the rental income and
I’ll be good or something no eventually once you get enough houses or enough units out there then also you can get to a point where you maybe you can start living off it but it takes a long time to get to that level way too many people including myself have tried to live off the stock market before they were ready to live off the stock market just based upon the
Fact that they had done very good for a long time they thought they could just keep doing great in and keep getting ridiculous games forever and ever then all sudden some stuff happens short term it hurts them and also they realize wait a minute i sure i shouldn’t have made this move right so don’t just try to get caught up in the short-term game of let me put
Some money in stocks hope it goes up oh wait i actually need this money for a down payment on a house or something like that oh actually need this money for a surgery oh i actually need this money for something else i don’t do that guys and don’t get caught up in the game of trying to make it full-time as an investor unless you have a significant amount of money
We’re talking at least about ten million dollars in the market then you can kind of focus on it as a full-time deal until you get to that level it should just be another way of building up your wealth as a stair climber to where you want to get to okay let’s get into reason number four reason number four you shouldn’t invest in a stock market as if you’re someone
That just chases speculative companies all the time yeah i cannot tell you how many people i know some people that might be in my stock market membership group some people on this youtube channel that i see commenting a lot that’s strictly oh nothing but a bunch of speculative stocks okay bunch of stocks that generally lose money that are super small market caps
They’re basically stocks that people are trying to get rich tomorrow on ok that they hope they hit it bigger or something like that and it is so unrealistic guys the once again the stock market should be a place where you build wealth over a long term period ok you build a lot of wealth and the younger you get started the easier this game becomes ok the easier it
Is to climb up those stairs over time but the fact is so many people are out there trying to get rich tomorrow in investing in super speculative companies who most of time those companies go down over time or they go bankrupt or they just not exist in a lot of penny stocks and what not somebody to see some penny stock and then like put all their money in it and
Next thing you know like that penny stock is worthless it’s at zero and they lost all their money the fact is guys if you want to you can easily build wealth in the stock market if if you stay away from these type of companies ok and you just focus on great companies that have great long-term prospects going for them and i’ve already proven a lot of results and
Are very very profitable kay there’s nothing wrong with owning maybe one speck stock in your portfolio ok let’s say you own 10 stocks in your portfolio there’s nothing wrong with owning one i can’t tell you that’s a wrong thing you shouldn’t do that but the fact is a lot of people have their portfolios loaded with nothing but speculative stocks nothing but penny
Stocks nothing but stocks adders like oh maybe they could do something big someday but they really haven’t done much up into this point guys you will get hurt very very bad over time because guess what ends up happening and that mentality even if you happen to hit it one time similar to if you happen to hit it on the las vegas strip one time you keep coming back
For more and more with those spec stocks and eventually you get burned completely and your wealth goes to nothing overnight ok if you’re you get a very addicted if you start chasing spec stocks and you happen to hit it on one which you’re very very lucky if you just happen to hit it right you’re always going to be chasing that thrill again and again again similar
To a gambler on the las vegas strip i’ve never seen one person ever ever or heard about one story ever that was a person that over the long term they chased nothing but speck stocks and made a lot of money in the stock market i’ve never seen it ever i doubt it will ever happen don’t be that person guys trust me it’s just a destroyer of wealth over the long term
And over the short term ok let’s get into reason number 5 number 5 this is probably the hardest one for me to do in all honesty this is the hardest one for me to do it like i always thought like if somebody had the work ethic to put in towards stock market investing and they had the right strategy like they’re good like they’re gonna get it okay like my strategy
Is very similar to like a warren buffett type strategy if you’ve ever read my books or taking my courses a lot of is very similar to like warren buffett value investing looking for different metrics and whatnot p/e ratios balance sheets things like that but what do you found is a lot of people have a complete inability to stick to a strategy a complete inability
To sticks to a strategy this is one of the hardest things for me to get over because i’ve seen this from friends from family members from from people i’ve taught you know stock market investing too that they just cannot stick to a strategy alright i’m not sure if it’s cuz they lack confidence in themselves or what it is but a lot of people just cannot stick to a
Strategy so i can give them the whole blueprint you look for this you look for that and yet they won’t stick to that strategy you don’t know how many people i’ve come over crossover time that i’ve taken you know my courses or whatever and then send me emails on that they’re buying some penny stocks out there and they lost all this money and blah blah blah and i’m
Like what are you doing like like what type of strategy are you doing out there there there also in trading and doing this and that and they’re losing tons of money you don’t know how many close friends i’ve taught everything to and i’ll see them investing in stocks that have absolutely horrible balance sheets like these are their main positions and they’re loaded
Up on massive amounts of debt very little cash and they wonder why these stocks end up going down overtime or what’s going to happen the next time the cards come crumbling down and these companies are loaded with debt and have very little cash in that balance sheet when also this corporation goes from making money to losing money because a massive recession hits in
The name of the game is long-term investing right but i’ll see people all the time doing short-term activity where you know nothing has changed with that business but just because it went down five or ten percent they go ahead and sell it off they’re like well it’s going down right now the stock just went down ten percent i’m down ten for seven and i just want get
Out of it or something i’m like wait a minute didn’t you love that business three weeks ago when it was ten percent higher than it is now and now you’re your celeea why you selling it well just because it went down and like if the business fundamentally changed or you just lean you just like i made a mistake here i don’t like this business overall and i shouldn’t
Invest in this if that’s fair game but if you’re just investing because a stock price you know went down like listen to what warren buffett says warren buffett says one of the most stupid things you can do in the stock market this is warren buffett’s quote not mine okay we’re both this is one of the most stupid things you can do is sell a stock because the stock
Price went down okay it’s one of the worst decisions you can make you believe in a company for the long term just because it goes down five or ten percent doesn’t mean you should sell it okay you believe that company’s going to double over the next three to five years what does it matter if the stock goes down five to ten percent in the short term like it means
Nothing to you in the end you should be judging off of the business the fundamentals underlying in that business not now you know whatever the stock price did people just have a big inability to stick to their strategy and see it all the way through and it’s just something that pains me to see cuz literally i’m just like i thought i would like a long time ago i used
To think like if somebody had worked ethic somebody had the strategy like they’re good they’re gonna make a lot of money over time but a lot of people have the inability the confidence in themselves to stick to that strategy and execute on it and that is a hard thing to see out there guys so i hope you enjoyed this this is five reasons why you shouldn’t invest in
The stock market if you fit these criteria it’s probably just not meant for you maybe you can invest in index fund or an etf or something that maybe just tracks the stock market overall maybe that’s something for you but as far as individually stock picking is not built for everybody out there and it pains me to see because and i think a lot of people have a lot
Of potential i can make a lot of money by individually picking stocks over time but it’s not cut out for everybody and that’s just a bottom line guys it hurts me to say it but it’s honestly the truth so hope you guys enjoyed this i hit it thumbs up if you did thank you for watching and have a great day
Transcribed from video
Why You Shouldn't Invest In The Stock Market Now By Financial Education
