5 Important life lessons from the Stock market

Do you know 5 important Life lessons from Stock Market?

Stock market teaches you life lessons only when you observe,

From the moment I started learning about it, I have been a student of the stock market. It remains the master always forever for everyone. For every success story like rags to riches, there are triple the stories of becoming a pauper overnight.

Initially, i also started with the objective of earning passive income in stock market by the way of trading. Sooner learnt that it requires lots of analysis and it can be a career by itself. Then started learning about investing and this is when i started tasting success. Success in investing, made me to take it as career.

5 important Life lesson from Stock Market :

When i reflect upon the journey of my life, stock market has made an impact. I learnt some important life lessons all these years, some of them are

1) Accountability

2) Responsibility

3) Learning

4) Perseverance

5) Respond Vs react

Accountability :

Accountability is the basis of everything in life. If you are being accountable, you will take all necessary steps in getting things done. Being accountable in your relationships, career, business, life, health, wealth, etc. If you need life with the happiness you need to be accountable to everything and everyone.

In the stock market, you are going to operate the Demat by yourself or you need to give your consent for buying or selling.  If you are believing in SMS/Email tips and investing, then you will be accountable for the consequences as well. This is one of the important life lessons from the stock market.

Responsibility :

In life, you are responsible for your actions. You need to take both positive and negative things equally to move on in life.

Here in the stock market, one should not get bogged down by the losses. It is your action to invest in that particular stock and you are responsible for that consequence of loss. If you end up making lots of money, again be responsible for selling at the right time to book profits.

Learning :

Life schooling starts right after college. The experience of dealing with various people, controlling emotions is all the learning experience. You also should keep learning in your business so that you keep up to date with the latest trend.

In the stock market also you should be learning daily. Any change in macro conditions, changes in government policies, RBI intervention, SEBI regulations, Stock exchange changes, change in industry standards, monsoon, etc will have a bigger impact on the movement of stocks. You should be prudent enough to watch everything while investing in a particular stock.

Perseverance :

Only when you are presented with so many opportunities, you will succeed in life. In schools, you will have quarterly, half-yearly, revision, and final exams. It is to make sure that you are ready for the final exam with repeated assessments. Certain exams like IAS etc will take many attempts but are worth the effort.

Here too you need to be with the stock market, learn a day in and day out. As this is a completely new investment channel. You might get occasional tips and it might also work out. Still, you should work out the strategy which made the stock gain and learns out of it. Elsewhen you lose money, you will fear investing in stocks again.

Respond Vs React :

Life is 95% how you respond to the situation

This is the most important lesson, everyone should understand. It is easy to react and act in emotion. Most of the time it will be unnecessary and you will regret acting in those situations. Instead, if you had responded to the situation it would have helped you in some way.

In the stock market too, if you react to the news or noises on daily basis, then you will regret it immediately. You would have sold a particular stock and the very next day based on one positive news it would have hit the upper circuit of 20%. Life or stock market is all about responding to the situation by analyzing it. I love this life lesson from the stock market, as it fits in perfectly.

These are some of the life lessons which I loved taking from the stock market. 

Click here to know the 5 point template to invest in the stock market.

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