No! Stock Market wont make you Rich! - Part 1

  As the Markets bleed day in and day out, this is a good time to say the truth. And the Truth is - 

Stock market wont make you Rich... 

Hey! Hold on! Then why the hell have you guys been asking us to take all the risks of volatility and invest in Stock Markets. Weren't we better buying life insurance policies and "believing" that our future is safe. If you think so, then that's where the bias is! When you talk of life insurance you just want to be "safe". But If it is stock markets, you become greedy and want to become "rich" while the matter of fact is neither life insurance policies make your future safe nor do stock markets make you rich. But lets stick to "stock markets and making you rich" part for now. 

At this conjecture, we want to draw your attention to this fascinating explanation of "Rich" by Morgan Housel -

" being rich as having a high current income.." 

So rich means having a high income. Anybody who has a high regular monthly income can be called "Rich". The sources of such income can be 

  • Salary
  • Rental Income
  • Business Income out of some hobby. 
The most important word that needs to noted here is - "Regular". This is the precise reason why we said Stock markets wont make you rich because the income from markets, If any, can never be regular, they are always lumpy for most of the participants. Further Rich people display below characters - 
If you have been associated with Droplet Wealth even for a very briefest time, you will acknowledge the fact that we abhor all these actions and advice to avoid most of these habits because these habits can be cancerous to your financial well being and make us penury rather than Rich.  

Further stock markets in no way help you become rich because the success rate of people wanting to becoming rich is hardly 5%, meaning 95 out of 100 people fail. A simple google search will say the same. 
Here is another piece of evidence, a statement by Founder of Zerodha, with whom most of the Indians have their Online Trading accounts and have tried their hands at Trading in stock markets - 

He has the trading history of most of us and says that only 1 out 100 people succeed in getting a return higher than FD!

So If you are somebody who has that wishful thinking that by getting in to stock market, you can make regular Income that can be spent recklessly to make you look rich, please by-heart this truth - NO! STOCK MARKETS WONT MAKE YOU RICH!

to be continued... 

For financial planning and investment-related queries, write to us at dropletadvisory@gmail.com or call us at 9962399924 / 9551373455. Visit our website - www.dropletwealth.com

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