Similarities of life and lessons from Stock Market

The stock market is quite similar to life. I was fascinated with the stock market from the age of 18 but started investing and experiencing it when I was 26 years old.

I learned a lot of lessons from my relationship of one and half year with the Stock Market.

In this journey, I learned many lessons. I experience that life and the Stock market is similar in many ways as both are about HUMANS. So let’s discuss the similarities of the Stock Market and life with their lessons.

• Bull and Bear Phase: Bull (ups)and bear (downs) phases are part of the cycle, but remember that nothing is permanent.

Ups and downs are part of life, like bear and bull runs in the stock market. One should have hope for better times during the downs and gratitude during ups as both these phases are temporary.

• Volatility Due to Distant External Factor: We all develop this habit of getting affected by forces that we can’t control. These forces can be society’s opinion, comments of a random person, remarks from a distant relative, etc.

In the same way, the Stock market is always affected by external factors. For example, The Current Russia Ukraine crisis impacts the world’s markets. Few companies in India have entire business in India and nothing to get hamper from this crisis. Still, their stock price is going down as overall sentiment is against the market.

We should develop a mindset not to give much importance to the external factors, whether in life or market.

By affecting with external forces, you’ll end up ruining your peace, calm and concentration. In the sense of market you will lose money by acting with each and every external force.

• Patience & Perseverance is the key to success: Patience is still the key to success in this fast-paced era; whether life or Stock market patience and perseverance would take you to the next level.

In Market, you need the patience to build your portfolio and see the magic of compounding. Unless you’re a bookie, you can not expect overnight money. One has to invest regularly in stocks with perseverance during ups and downs to witness money compounding over the years.

In the same way, you need patience and perseverance in your relationship, business, family, and obviously with yourself. Your personal growth, skills set, and success curve want continuous efforts, self-belief and patience.

• Tempting Easy Tips: Acting upon tips without due diligence is the most common mistake people make in the Stock Market. In a hurry to make easy money, people believe in random suggestions and lose precious money. One should study and research business first before making any investment. Your conviction about a business matter.

In real life as well, we often act upon random pieces of advice and get influenced by friends and family. In India, it happens a lot when choosing between Commerce and Science stream. People who take career advice from friends, relatives, etc., later on, end up being dissatisfied.

One must evaluate advice instead of following blindly. Evaluate your interest and personality and if it resonates with the advice or influence, only you should go ahead. This way, you’ll save yourself from feeling miserable in the time to come.

• Mob Mentality: We should restrain ourselves from mob mentality both in the case of Stocks and decisions in life. Investment in a particular stock should be based on business potential and not that everyone is investing in it. Same way, decisions about schooling, career, business, and relationship should be based on your interest, passion, and convenience.
• Hurrying to get Rich leads to unsurmountable risks: There is a high risk of getting badly hurt in the quest to become rich overnight. You may lose everything you have to get rich overnight, both in the stock market and in life.

It is tempting to get rich quickly, but there is no shortcut to success. So build your way to success with hard work, determination, patience and perseverance.

Share what you think about these similarities and lessons in the comment box.

Follow me Rishabh Sharma, for more content around Relationships, Inspiration, Books and My life. 🙏