Financial success: lessons to learn from stock market
It’s a unique topic and I have tried to extract some valuable lessons through observation that you can learn from stock market.
In this post, I’m not going to tell you about the best stocks to buy but actual lessons from stock market that can help you grow in life and achieve financial success.
Throughout the post, imagine the stock market as a natural person.
1. Ups and downs are the part of growth process
Stock market faces ups and downs every day.
In one second, it goes up and another second, it goes down. But stock market never fear of such ups and downs because it know that it’s a part of growth process.
2. It plays the long-term game
Stock market never runs for instant gratification. It plays long-term game and look for growth possibilities in the future while fighting with daily ups and downs.
In the long run you might have seen that stock market always goes up i.e. it never throw its weapon in the battleground.
It always grows irrespective of daily ups and downs.
3. It knows how to beat inflation
Stock market knows how to beat inflation. Inflation is its biggest enemy.
Imagine yourself as the stock market and something, which you can replace with inflation as your enemy.
Now, think of the ways to beat your enemy. Every problem comes with its solution. The only need is to identify that solution through mere observation.
You should never fear of your enemy whether it’s failure, lack of knowledge or anything that gives you trouble.
4. Survive the worst situation
Do you remember the major historical stock market crashes? If not read on Wikipedia: list of stock market crashes in the history.
Those were the hardest time for the world economies and of course for the stock market.
The pain of those crashes lasted for many years but what happened after the pain recovered?
After that stock market sky-rocketed to reach its original state, it’s not just that it recovered but also performed more than expected.
In the same manner, we as a person should have never give up attitude even if there’s no chance left for survival.
The rule of thumb is to fight with adverse situation until the last drop of your blood.
5. Invest wisely
The stock market also teaches us to spend our money and time wisely.
You may have seen that not every company gives better return – most of them bankrupt and investors losing all their money.
The lesson to learn here is that – many options are available to us. It’s our duty to do our homework and find the best opportunity to invest our time in.
Example: a person may chose between watching news or reading a good book.
He may spend time wandering with his friends or may acquire new skill.
It all depends on us people who listen to their emotion mostly fail in their life and people who listen to their logic wins in the life.
6. Have a good control your emotions
Stock market also teaches the lessons to have a good control over your emotions.
The stock market works on emotions. Most of the people take investment decision emotionally.
When the stock market goes up people invest their money and when the market goes down people de-invest their money.
Whereas, they should be doing exactly opposite.
Caution: Investment in stocks is subject to market risk. Take advice from your financial advisor before making any investment.
Having a good control over your emotion can help you make better decision in life.
Most of the decisions we make are based on emotions and not on logic. That’s why most people struggle with their life.
It doesn’t matter what comes – a strong person will never drop its weapon.
The lessons we have learnt from stock market must adopt it in our life so that it can benefit us.
No person is untouched from the pain and struggle of life. Some people fight with courage while some people try to hide from it.
The ultimate winner is the person who never gives up.
Disclaimer: this post is just for informational purpose not investment advice. Take advice from your financial advisor before making any investment.
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