Stock market is place for the emotionally mature, sane, fairly intelligent and preferably equanomious people.
Although, all are equally welcome to this community of wealth creators but following people shouldn’t be in stock market.
1. Those who want fixed returns. Stock market is seriously not for you. Some years it’ll fetch 100%+ returns. Few years it’ll be negative 20%. Stock market returns are not linear.
2. Those who shit their pants seeing a ‘stock’ go down by 20-30%. Btw, ‘entire portfolios’ can also do down 20-30%. And theoretically a stock can still tumble 99% after being down by 30% if fundamentals deteriorate.
3. One who doesn’t have the stomach to digest losses.
4. One who starts cursing the company management, broker, fund manager, research analyst once things go south.
5. Those who can’t appreciate 5-7 greens but cry 2-4 laggards in a portfolio of 10 stocks. They don’t understand the game of averages that if average gains are good in portfolio, they’re actually winning despite 2-4 stocks down by 50%.
6. Those who are impatient and keep checking prices now and then.
7. Those who want certainity. This business inherently is uncertain and offers premium returns over other asset classes for the same reason.
