Why you should not invest in the stock market
By AlGene CarauliaSome imagine the stock market investors and see a fat man in a suit with piles and piles of money. But the stock market isn't all the shine and glamor that it appears to be. This is because it’s basically gambling, no one is good at it, competition, and it’s time-intensive.
First, how does the stock market work? Basically you're a bank. You can invest in a company that you believe will grow over time. Over time the company will pay you back your money with interest and possibly growth interest. Which is interest time how much the company growth was. Possibly doubling or tripling your money? Or you can lose all your money and the company goes bankrupt. This brings us into our first problem it's basically gambling.
So with the stock market unless you know for a fact the company can do nothing but grow you can lose all your money and get none of it back. And there is no true way to tell if a company will always grow. Also, the stock market can crash at a moment's notice. In 2008 the stock market crashed. So basically inflation raised and no one bought things so no companies could grow and people loosed jobs. With no jobs there is no money and no money means you can’t buy things so the stock market cant recover.
Since it’s stock market is so unpredictable, there is no way of telling if someone is good at it. People make their money basically through luck. No matter how much analyzing of companies they do and calculations it’s still up to luck. Now let’s talk about competition.
Part of the stock market is people can choose who they want to invest their company in. So say you put $100 into a company and they will agree to the investment. But then let's say Johnathan invest $101 since he is investing more the compony will drop your investment and take him instead. Over time he doubles his money and makes $202. Basically everyone is so greedy that they will want to slit your throats in an ally so they can guarantee to make money.
Finally, it’s very time-intensive. Some won’t be able to make a considerable change in interest until their investment hit’s two-year mark. So it’s a lot of looking at a screen every day hoping that something spikes. Then you can take your money out if you want or you can hold it out and hope for an even bigger spike. Going back to the gambling bit you can either earn and take out early and not earn as much as you could have. Or not take out any at all and lose more than you could have earned.
So never invest in the stock market or else you can become broke, your not good at it, waste years of your life, and make you worst enemies.
Works Cited
“10 Reasons You Should Never Own Stocks Again.” James Altucher, 28 Apr. 2011,Amadeo, Kimberly. “When and Why Did the Stock Market Crash in 2008?” The Balance, The Balance, 22 Aug. 2019,
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ReplyDeleteI agree that the stock market is risky business because you’re investing money that may go up, or may go down, in a company who may grow, and they may go bankrupt. Like you said, it is kind of like gambling, but not entirely. You can actually make a fortune off of the stock market, but you need to know where and how to invest your money. The newer the company is, the bigger the risk. But if you invest in a company that is already a powerhouse, the risk is lower. Really all you have to do is be smart, and know when to risk it and when not to risk it. If you have a lot of money and can afford to lose a few thousand dollars, then take the risk because you can afford it. If you can’t afford to take the risk, don’t take the risk, and invest in a company that is safer.
ReplyDeleteThe stock market is definitely a risky business. Honestly, I have never heard it being compared to a casino where gambling occurs and it honestly makes a lot of sense. The stock market is a giant, legal slot machine where you could win big but will most likely lose it all. Playing it smart is definitely an option on where and how to spend your money in the stock market, but more often than not you do end up losing it all, so I definitely agree with your assessment on why you shouldn't purchase stock no matter how tempting it is.
ReplyDeleteI respectfully have to disagree that the stock market can be compared to gambling. I do see where you are coming from as there are no guarantees whatsoever, but it is very different from gambling. In most games which involve gambling, it is based largely off of probability; you could get lucky or really unlucky. In stocks, however, there are a lot of trends. To people who live and breathe the stock market these trends will become a lot more visible to them as opposed to most of us who don't know all that much about the market. All I can say is, for someone who completely understands these trends, your "probability" of making a large sum of money is much greater than playing a game at a casino.
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