15 reasons Why we do not invest in the stock market

15 reasons Why we do not invest in the stock market

In India, the active participation of people in the stock market is very less. They actually do not invest in the stock market.

In India, only 2% of people invest in the stock market. In a 1.3 billion people country, only 25 to 30 million actually invest. The Indian economy has done very well in the past but we don’t have faith in our economy. Our GDP has reached 3 trillion dollars. Despite all these, we are not investing in the share market. 

There is some reason why we are not investing in the stock market:

1. They do not invest because they think it’s gambling

Everyone who has never invested thinks that investing in the stock market is gambling. They are partially right at their place. 

In investing there are two types of people:

Investor and trader

An investor is those who invest their money and grow their wealth.

A trader is those who speculate their money for the short term.

We get always confused between investors and traders.

Read: Investing vs Trading

2. They do not have knowledge about the stock market

Our main problem is that we have never taught about investing in school and at home. A student passing out of college does not even know the stock market. There is ignorance all around the stock market. 

They consider the stock market as “Satta bazaar”(place to gamble).

3. They do not invest because they don’t want to take risk

No doubt in the stock market there is a risk. But the risk-reward ratio is also very high. In the stock market, the more you take risks, the more you get rewarded. We should always be ready to take a risk in order to succeed in the stock market. 

4. The expectation of people is very high

In the stock market expectation of people is skyrocketed. They think it is a place to make more money very quickly. With this expectation, people come to the stock market. They get disappointed easily and leave the market and never come back. 

5. They fear losing money in short-term

In the stock market money is made in the long run. Those who really invest in the stock market do not bother losing money in the short term. 

If you consistently invest in the stock market you will get an excellent return in the long run.

6. They don’t believe in the economy

India is one of the largest growing economies. Indian companies have done very well in the past. The future is also bright for the Indian economy. In the stock market, you only make money when your company makes money. 

7. They take advice from the wrong person

In this market, everyone is ready to give you advice. You will always hear from people saying this company will do well that will do well. 

But the reality is that “No one can predict the market in short-run”

 If someone is telling you that the market will do this and do that it means he is only trying to make money from you.

8. They had a bad experience in the past

Many people do not invest in the stock market because they have had bad experiences in the past. A bad experience can be in many ways either they have lost their money in the stock market or they may have very high expectations from the market which has not been fulfilled in the past. There can be a reason that someone has cheated on him so he doesn’t want to invest.

9. They don’t want to learn new things

To invest in stocks you have to constantly learn. You have to be a learning machine if you want to invest in the stock market. There are many things you should know if you want to invest in the stock market. You should learn about the fundamentals of the company, government policies, interest rates, inflations, taxes any many more things.

In stock market “ THE MORE YOU LEARN MORE YOU WILL EARN

10. They don’t want to do the stock research 

Do you think you can invest in stocks without doing stock research? The answer is absolutely not. 

Everyone who invests in shares must learn how to do stock research. Fundamental and technical analysis is a must for everyone. If you do not know how the fundamentals of companies are, how can you invest your money? 

11. They think it is tough for them

Investing is much easier than you think, but the problem is we don’t start to invest in the first place. Staying out of the market and thinking that it is tough is not a good idea. You have to first invest to know the reality. 

12. Fear of losing money is more than the joy of gaining money

In the stock market fear of losing money is much more than the joy of gaining money. Making Rs 10,000 on stock fell great, but Rs 10,000 loss is twice as painful.

13. They are in their comfort zone

One of the reasons they do not invest in the stock market is that they are not comfortable in stocks. They feel comfortable in getting a 7% return in a fixed deposit. They do not even think of taking a risk. They are in a comfort zone and they want to stay there.

14. They only believe in doing  jobs

 The middle class always gets stuck in 9-5 jobs. They feel comfortable living paycheck to paycheck. They never take care of the financial future. They depend on the government for their retirement and medical emergency.

15. No one in their family has ever invested in the stock market

The reason today people do not invest in the stock market is that we never heard about the stock market in our homes. No one in our family has ever invested in the stock market. 

 Whenever we heard about the stock market we only hear as a Satta bazaar. They think that it is a place where we can only lose money.

No one has actually had tried to learn and invest in the stock market.

Final thoughts

We can see that all these reasons are not so big to ignore investing in the stock market. Investing in the stock market can build your financial future in a great way. So start investing, sooner the better.

Keep learning and keep investing

Also read:

Shubham Pal

A student and an investor. Shubham has a passion for investing in the stock market. He loves to talk about investing, money, and the stock market. He is a follower of Warren Buffett. He loves to read personal finance and investing books.

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