Wealth 3. How Not To Lose Money in The Stock Market
We'll talk about what causes people to lose money in the market—and how to stop making those same mistakes.
Welcome! The ‘Wealth Playbook’, ‘Science-based Tools’, ‘Lead to Win’ & the ‘Le Monde Élégant’ sections are companions for The Stoic Manual to help you build wealth and enjoy the financial freedom and power it affords, enhance your physical and psychological health, vitality, stress resilience, discipline, focus, motivation, and refine your people skills, relationships & leadership skills for a distinguished life—by Dr. Antonius Veritas.
Adrian stared at his phone in panic, heart pounding. The line went dead - again. His mutual fund manager had stopped answering. Two months ago, they were sending graphs with smiling emojis. Now the portfolio was bleeding and the house Adrian bought at the peak was under threat. He had trusted the system. He had done everything right.
He had told his wife not to worry. They had kids. A mortgage. A second car loan. “This is how wealth is built,” he had said. But now the fund was down 60%, and with no answers and mortgage payments piling, Adrian found himself searching YouTube comments for clarity and scrolling Reddit threads for hope. “Hold.” “Sell.” “Double down.” Every hour, a new opinion.
He started following hashtags. Sold during a dip when X was screaming ‘crash,’ bought back at a peak when influencers said “the bottom is in.” Loss after loss. Confusion turned to shame. They began to depend on their parents for dinner. His wife cried in the bathroom. He started whispering when answering bank calls.
Adrian wasn’t greedy. He wasn’t stupid. He just didn’t know what he didn’t know. He thought investing meant trusting so called experts, reacting quickly, and staying plugged into “the conversation.”
What he didn’t realize is that most people lose money in the market because they follow advice designed for click bait, not for wealth. Because they trust excitement and drama over evidence.
Today's entry is for you if you've ever wanted to invest your money and grow your wealth. Or if you've been burned before and want to know what you did wrong, before making another fiscal decision. Below, we'll talk about what causes people to lose money in the market - and how to stop making those same mistakes. These are the rules of the game that you don't break. Ever.
P.S: I want us to get the mental hurdles plaguing most people out of the way before we can get into the Stoic investment strategies for the utmost returns and hedge against risk, on our way to building wealth.
Next we’ll look at the considerations and tools necessary to build wealth according to your wealth building stage before we get into Stocks, Bonds and Portfolio strategies.
Previously,
I. The Stock Market Puzzle
The stock market is…
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