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Well guys there’s a big illusion in the stock market that i want to talk about here today and i hope that you guys get a lot of value out of today’s video because i see this mistake being made time and time again by people that are coming through the stock market funnel and they just get confused on what they’re really looking for in this game okay i want to really
Explain this in depth so you guys can fully understand this and so you make sure you don’t make this mistake because i see time and time again people get into the game because they want to go after something and they get completely confused on where they’re headed okay so i hope you guys can enjoy this day okay so what i call here is the stock market funnel there’s
Basically a funnel that you know people get into when they get into the stock market okay this funnel brings you in somehow if you ever get involved with the stock market which not everybody gets involved with the stock market at any point in time but there is what i call the stock market funnel okay the first side is what most people bring in to you know get into
The stock market because they they have their work somewhere and they’re letting you know the work place says hey you need to sign up for the 401k so you can start having your money invested or whatever you can put a portion on money and we’ll do a match dollar-for-dollar until five hundred dollars a month or whatever it is okay so 401k people you know get funneled
Into the stock market you know people you know that start an ira an individual retirement account or something like that that are getting funneled in or just people that are looking at you know just put their money in an index fund something that tracks s&p 500 or the nasdaq 100 or whatever it may be and this is kind of a lot of people that kind of get funneled
Into the stock market and there’s nothing wrong with that okay that’s just you know regular folks is getting them coming into the stock market that’s the stock market finally get into okay then you have another part of the stock market funnel that happens okay this part is more toward stock pickers i like to call it okay which would be me i consider myself a stock
Picker now there’s many different ways you can go on stock picking it’s basically a stock picker in simplest terms you’re looking into companies or researching companies however you do it okay my way is a lot different than somebody that might be a day trader or something like that a or a swing trader something like that right i’m researching companies fully i’m
Looking into them i’m trying to make long-term decisions on company that i might that at least would feel comfortable with holding for years if i ever even do that okay and you’re picking stocks to hopefully gain on your money the best way possible okay people get into this you know through day trading maybe they see an ab for some day trader out there and they’re
Like oh look i got all these fancy cars and look at my new lamborghinis and i make so much money off day trading or i don’t make so much money off day trading or whatever okay and so they get funneled in through day trading or maybe it’s swing trading they get funneled in through swing trading they think that sounds really cool you know trying to profit off a stock
After a short term move this could happen either in the market or a stock in general or there a value investor which is more like the warren buffett approach just more looking for companies that are very safe companies overall that are you know are a good value out there maybe you can make dividend money reinvest that dividend money you don’t value investors then
There’s a growth investors which are once again more long-term focused people but they’re really looking for those stocks that have big growth ahead of them you know 20% 30% 40% plus growth and then you have those combo investors that are kind of like me that are still kind of looking at stocks from a long-term perspective but are thinking i’m looking for value
And i’m looking for growth it’s more of a combo okay but that’s not really the point of today’s video this is just kind of explain how people get you know into the funnel the big thing is you know especially with stock pickers is why why did they get involved with you know stock picking like how does this actually end up happening and it’s something i think we
Should all think about what it like how does this happen like like why do we all send you know to start thinking about stock picking and want to actually like buy stocks individually like a like what makes us want to do something like that okay so one percent of people that become stock pickers it’s mainly because they’re already rich and they want to diversify
More they want to build their wealth more and this is literally about 1 percent of the people that actually get into stock picking ok because they’re already rich and they just want more wealth that they want to diversify their wealth maybe they built a lot of money through a business and they want to diversify so they want to buy some stocks they want their money
To grow maybe they made a lot of money in real estate so they want to you know grow their money some more try to at least and so they’re gonna become a stock picker and in picking individual stock so they just want to diversify ok 99% of people and more unlikely if you’re watching this video you’re probably in the 99% cuz 99% is a lot of people ok 99% of people
Simply get involved with stock picking because they want a better life okay they’re not happy with where they’re at financially at a particular time or what’s going on with their financial situation or they just want more and so they get involved with stock pick and they look at it and they’re like hmm this seems interesting this seems like a way i can grow money it
Seems like a way i can you know get the good life or things like that okay and that’s what i want to dive into here today because this is the biggest issue i see what this is is how people get sidetracked so i think we should do a little psychology work and talk about why people want to go this route why is someone want to actually pick stocks okay and like we talked
About it’s mainly because people want a better life out there they want a better life and it could be for many different reasons and i’ll explain what some of these reasons are actually really bad reasons okay some people say i will love the be rich why is this well most people don’t have much money they grow up maybe with not much money and they see somebody living
A great lifestyle and maybe a glamorous lifestyle they’re like man i would love to live that and maybe through stock-picking i can live that type of glamorous rich lifestyle okay let’s just talk about this one first okay i’m just gonna tell you it’s gonna be really hard to get super rich just from stock market investing okay you also need two more unlikely start a
Business or work high up at a company so you have a lot of income to throw into your investments okay because here’s the thing if you’re a great investor over time maybe you can get 20% or so a year and that’s a really really great investor okay now not everybody is a great investor because not everybody has a work ethic to be a great investor not everybody has the
Talent to be a great investor not everybody has a discipline to be a great investor okay so let’s just say like like the chances you can make 20% plus consistently per year is very very slim okay let’s say you can even do that you still need a lot of money to always kind of throw into the stock market because you’ve got to always you know obviously average down on
Position sometimes because things aren’t going to go your way and you want to buy bigger stakes in companies and you kind of always need to have that money fill you know going in and going in and always be making more and more money on your money right in order to really become rich and really you don’t have that type of lifestyle where you can have any home or any
Cars you want or things like that or any materialistic possessions that you specifically want out there if you to be able to do that you’ve really got to do more than being just a stock market investor you’ve got to be great at stocks but then you’ve got to be really good at business or have a big income in general whether you’re maybe making at least a hundred ke+
Per year if not several hundred k per year that you’re being able to stuff in the stocks and going ahead and hopefully getting good gains on those you know 10% a year 15% a year on average or maybe even 20% if you’re really really great or something like that and then you go ahead and you just continue to build that money over and over but here’s the thing don’t
Expect to be great as stocks right off the bat okay usually if you’re gonna be great at anything including stock picking it takes a lot of time it takes a lot of work ethic to even get to those types of levels it’s not like you just you know watch one of my courses one day and you’re just all we’re already a great stock market investor that helps accelerate things
But it doesn’t mean you’re all sent a great investor overnight because you haven’t done anything yet okay you’ve just learned okay you watch a bunch of my youtube videos or somebody else that you respect you watch a bunch of our youtube videos oh you’re a great investor right because you learned everything absolutely not you still need to go ahead and practice all
Those things right if i was will watch a bunch of you know shooting tutorials on a basketball and steph curry’s teaching me how to shoot three-pointers great i learned all i need to keep my elbow like this i need to have my wrists like this i need to do this okay that’s great doesn’t mean i’m a great three-point shooter i got to actually go out there and execute
That okay so if you’re getting in the stock market just because you want to be rich you want to live that type of lifestyle i’m just gonna tell you it’s gonna take a long time to get there and i’m also gonna tell you you need to you more unlikely have a big income as well this is something new you know not many people in the stock market like to admit especially
People on the you know internet community or whatnot but it’s that it’s a god’s honest truth like you need to have other income sources you need to have you know different types of money coming in all the time so you can go ahead and put that money that’s why i do the passive income videos on the different youtube channels and whatnot because i you know if you guys
Want to get there which not everybody does but if you want to get there you need to have passive income streams of other kinds okay number two other people would get involved because they say i would love to do nothing all day and make money they just think about like like you know somebody that’s super rich like a warren buffett or something like oh man that’s so
Cool they just like it’s just like you know it could just sit around on a beach all day and make literally hundreds of millions or billions of dollars in dividends how cool is that and so they they get caught into this you know oh man i would love to just sit around on the couch all day watch movies and do nothing and just money just comes to me constantly okay and
I’m just telling you if you have that type of mentality you should never get there okay the reason people get to these type of levels where they have crazy money is because they have crazy work ethic behind it there’s no one that’s super rich in unless they inherited money it’s knowing that super rich and did nothing and just collect all this money okay everybody
That got there is absolutely an absolute work you know workaholic at the end of the day you know whether they’re talking about warren buffett or you’re talking about anybody that runs big businesses they’ve got their because they’re workaholics okay and then not only were there workaholics but they worked super smart as well and that’s how they get to that level
Where they make crazy amounts of money on an everyday basis you know hundreds of millions of dollars in dividends or billions of dollars in wealth or they’re you know jeff bezos in a given year is wealth can increase ten billion dollars people are like how is that even like humanly possible that someone’s wealth can increase ten billion dollars in a day in a year
That like this is ridiculous how did they get there guys because they’re they’re workaholics okay they grind like those nobody else is so if you’re just hoping to get there because you know yeah man you got that type of mentality i would love to just do nothing like everybody would okay and you’re not gonna ever get there because you just don’t have the right
Mentality i’ll be completely honest there’s no one that’s ever gotten there and has that type of mentality i can promise you that 100% okay and number three a lot of people say you know i would love to work from home okay this one really comes down to the fact that most people hate their jobs and so they see stock market you know either you know they come across
Somebody that day training and or there’s somebody that’s investing like myself and they’re like oh man that must be so awesome you get to work from home you get to just invest in stocks so you get to trade stocks around that sounds so cool and honestly most people like that because they hate their job and they would just love to just sit at home all day and kind
Of do those sorts of activities and whatnot okay and once again you got to get to the root of the problem the root of the problem is not the fact that you really necessarily want to be at home all day and doing those sorts of things you know the real thing is for most folks out there they just need to find another job but they need to start a business or something
They’re just more unlikely in a situation that they’re not happy they don’t like their particular work they’re doing on an everyday basis and so therefore they look at you know stock market investing or trading or anything like that as a way out of that situation in most of time that’s not gonna work guys in special i like it’s just not gonna work okay day traders
90% plus of them lose money over the long term and you know never mind that most of them underperform the market even if they do you know get a positive return okay so it may be you can be the part of 1% or 2% that makes money or keeps up with the markets in general very unlikely okay just complete god’s honest truth two very very very unlikely no matter how much
You work at it it’s very unlikely okay and then if you want to work from home investing your money you need to have a lot of money invested okay like hundreds of thousands of dollars even millions of dollars or have like little teeny expenses that you hardly spend any money on and let’s be honest most people if they want to invest in a stock market have that type
Of money invest a lot of time you want to live a bigger life style right the whole thing just doesn’t make sense at the end of the day here’s what it should be if your stock picking out there here’s how you should really view things okay wherever level you’re at you should view it as like a staircase and you’re climbing up this staircase in you’re building wealth
Along the way okay the stock market is a great place for building wealth over the long term the stock market is not a good place for building wealth overnight in becoming a millionaire overnight the stock market is a very poor place for that okay try to find stories of somebody that just you know like like became a millionaire overnight it doesn’t exist okay guys
This just this just doesn’t it’s like happen okay it’s a staircase to build and if you have a long-term mindset over a decade or two you’re gonna built a lot of wealth in this game but if you have a bad mindset you have a lazy mindset you have a mindset that’s not really focused on the long-term you’re gonna end up climbing some stairs and going right back down and
Then you’re starting to climb stairs and going right back down okay you’ve got to view it as it’s one step at a time to continue to build and build and build and that’s a hard thing for a lot of people to get over just the fact that it takes time a lot of people just like see their financial situation at a particular time and they’re like man i got five hundred
Dollars in my account i want to have a lot of money oh i wanna you know i i work at this place i don’t like work in there we’ll love to just work at home and invest in stocks or day trade stocks or something like that i’m just telling you guys that’s very unrealistic you’ve got to have the mentality of a long term you know perspective on it that you will build
Step by step and step and you start down here and you got your thousand bucks to your name and you get up here and you got ten thousand then you build another stair and you get fifty thousand and a hundred thousand and then two hundred thousand and the great thing is the further up the stairs you get the easier it is to build wealth because you know a ten percent
Gain on a million dollars for instance is a hundred thousand dollars right a ten percent gain on ten thousand dollars is a thousand dollars right so as you get further and further up the stairs as time goes on it means a better and better just a lot of people are never gonna get up the stairs because they’re simply not going to have the right mindset to ever get
There in the first place because they want it to all happen overnight they want their account to go from a thousand dollars to a hundred thousand overnight they want their account to go from you know five hundred bucks to five hundred thousand bucks overnight or within a year or it’s in two years i’m just telling you it’s gonna take a decade two decades to get
There and it’s gonna take a lot of focus and a lot of work ethic if you’re gonna get there okay this doesn’t happen overnight and anybody that’s ever preaching that happens overnight i get promised you as a hundred percent wrong the closest thing you’ll get to overnight success is really like building a business of some kind okay that’s the honest truth like if
You want the closest thing you’ll get to possibly building an overnight success that’s honestly building a business outside of that stock market investing it’s all about building to the next tier in next tier and don’t ever expect that you’re just going to be a millionaire overnight because that just doesn’t happen guys and that’s the god’s honest truth and if
You can’t deal with that and that’s fine then the stock mark is not a place for you or the stock market it can be a place for you and what you’ll do is you’ll just transfer money you know to basically people that are doing a lot better than you they like to say the stock market is a place where the impatient transfer money to the patient people okay and that’s
Honestly who a lot of what the stock market is okay it’s all about climbing those stairs get the right mentality around you can have a lot of success in this game get the wrong mentality and i promise you you’ll know you’ll never climb any stairs you’ll just be stuck there and you’ll never really make money guys so i hope you enjoyed this i hope you got a lot of
Value out of its a hard-hitting video it’s a hard video for a lot of people to swallow out there because it’s the truth and you know a lot of people just want to hear that it you know you can become rich overnight or something or within a year man and i’m just telling you it’s not gonna work out unless you start a business that’s just like god’s honest truth guys
So i hope you enjoy this smash that thumbs up button if you respect the honesty of the video thank you for watching and have a great day
Transcribed from video
The Illusion of The Stock Market That Fools You By Financial Education