The Stock Market is Basically Gambling
People always ask me "Why don't you recommend investing in the Stock Market?" "Why do you hate the Stock Market?" Well, the answer is - I don't hate the Stock Market - I just don't like to gamble with my money! The key with investing in the Stock Market, is you really have to know what you're doing.
One of the hallmark ways that makes an investment less risky, is how much control you have over it. In 99% of Stock Market investments, you have no control. Just think of all of the layers that go into a stocks performance.
I'm going to go through a few of the reasons why I don't invest in the stock market, except with a very few exceptions.
The first layer is the company you're investing in. If you're investing in a specific company like Nike, or Coca-Cola or any other company, you have zero control over how well they do - even if you are an employee! If something goes wrong, such as a pandemic, or a government shutdown that impacts this companies ability to operate - that affects your stock!
Which is exactly what happened in March of 2020 when COVID hit and the Stock Market plunged to record lows.
Now that money that you've invested has potentially gone *POOF!*
Some people think Mutual Funds are a way to mitigate risk when investing in the stock market, because you're not putting all your eggs in one basket.
With Mutual Funds, you're investing in multiple companies in which you have zero control. Then, on top of that - I have no control over the fund management! Then, if you're investing in a specific industry, this could make it even more or less risky (depending on the industry).
Say your investing in car dealerships, or restaurants, and that industry gets hit by a situation - any situation really - this is something you have no control over. Remember all of the people who lost so much in the Stock Market crash of 2008?
Mutual Funds disconnect you by even another layer - not only do you have no control over what the leadership of the company does, but now that you've got the fund manager who has control over the investment - and guess what, you still don't.
Another would be the stock market itself. If we have any kind of economic or political turmoil the stock market could go up or down. That's a third layer that you have zero control over.
Essentially, the stock market is sensitive to outside factors - which you can never predict. Anytime there is uncertainty in the news - the market reacts. The House votes no bailout in '08? Dow loses 777 points. Brexit? S&P fell 6.5%. Trump Rally? Dow falls 900 points.
Unless you can tell the future, sounds like a guessing game to me.
You'll have noticed a trend here. The reasons I don't invest in the stock market all have to do with one thing- control!
My definition of Risk: How much control you have over the investment.
The more control you have over the investment itself, or how much money it makes, the less risky it is for you.
For instance, if you invest in your own business and you have complete control over how well that business does - the profitability and decision making is all in your hands - you would have less risk than investing in a business in which you had zero control!
Control is one, but not all of the important factors to consider when determining the risk factor of an investment.
All of the layers we just talked about make stock market investing super unpredictable - this is why I typically do not invest in the stock market.
Another way a lot of people invest in the stock market is by option trading. If you're a trader of options, that's great. But only if you have the expertise to do it and know exactly what to do.... If you're like most people - you don't. This requires a lot of time and dedication. Time I don't have to spare!
I want my money to work for me. I want my investments to produce predictable, recurring monthly income. That's why I have systems that create this for me. Proven Systems.
60% of Tardus Clients Ditched the Stock Market in favor of these Proven Systems.
And as a matter of fact, these systems have worked for 1,000's of other people. They can work for you too. Schedule a meeting with an Expert Wealth Coach today to learn more about these systems.
