I’m actually surprised that a lot of people I talk to are interested to learn about the stock market. In this post, I’ll just share what usually happens in these conversations…
What often happens is that I start with the basics: what it is, how it works, and how to make money. But within the first few minutes of our conversation, I get interrupted with an objection often posed as a question.
Side note: People often start explaining a little further by telling stories of their friends or relatives, or something they watched in the news. At this point, I just match their emotions as they make their case. I’ve learned that immediately answering and preventing them from “getting it all out” just makes the process slower. So I sit back, listen and wait patiently for them to finish. Finally, when they’re done, I keep quiet for a long time. If there’s a long pause, it makes them more ready to listen to what I have to say.
http://www.stockmarketforpinoys.com/blog/stock/4-myths-people-believe-about-the-stock-market/
http://www.stockmarketforpinoys.com/blog/stock/4-myths-people-believe-about-the-stock-market/
Before I go on, it might be handy to keep these in mind so that if someone asks you about the stock market, you know how to answer with confidence. This way, more people are properly informed of what the stock market is all about.
Note that (italicized sentences in parentheses) are notes addressed to you, the reader.
1. Them: “So you had a lot of money when you started?”
Me: “It’s a lot bigger than when I began. I started by putting only P5, 000. Little by little, I put in more and more money into stocks. Whenever I would get bonuses from work, or had a little left over, it would go into the stock market. Today, I have more than P100, 000 in the stock market. (Don’t make this figure too large, it will intimidate them.) Actually, you might be thinking in reverse. You see, having a lot of money beforehand is NOT the reason why I’m into the stock market. Rather, I have more money now because I started investing in the stock market. Don’t get it mixed up.”
Me: “It’s a lot bigger than when I began. I started by putting only P5, 000. Little by little, I put in more and more money into stocks. Whenever I would get bonuses from work, or had a little left over, it would go into the stock market. Today, I have more than P100, 000 in the stock market. (Don’t make this figure too large, it will intimidate them.) Actually, you might be thinking in reverse. You see, having a lot of money beforehand is NOT the reason why I’m into the stock market. Rather, I have more money now because I started investing in the stock market. Don’t get it mixed up.”
2. Them: “It’s just too complicated for me.”
Me: “Well, that’s true. It took me 6 months before I got started in investing. But you know why? It was because I made the mistake of not getting a guide. I wanted to do it on my own. So I didn’t see the bigger picture. To get you started, I’ll already give you the big picture.
“There are two general ways of investing in the stock market: (1) long-term investing and (2) trading. There are many differences between the two, but the most basic thing to know is that long-term Investing is a lot simpler than trading. When I was studying, I took up trading first, and it took me 6 months. Then I saw the big picture, apparently I was going down the more complicated path.
(At this point, I’ll ask them to read the Stock Market Jumpstarter) If you seriously want to get started in the stock market, try downloading this e-book I wrote. All it takes is 45- minutes to read from cover to cover. Don’t worry; two things: (1) it’s completely free, and (2) I can promise it won’t make your nose bleed. By the time you’re done reading it, you’ll be ready to start investing.”
Me: “Well, that’s true. It took me 6 months before I got started in investing. But you know why? It was because I made the mistake of not getting a guide. I wanted to do it on my own. So I didn’t see the bigger picture. To get you started, I’ll already give you the big picture.
“There are two general ways of investing in the stock market: (1) long-term investing and (2) trading. There are many differences between the two, but the most basic thing to know is that long-term Investing is a lot simpler than trading. When I was studying, I took up trading first, and it took me 6 months. Then I saw the big picture, apparently I was going down the more complicated path.
(At this point, I’ll ask them to read the Stock Market Jumpstarter) If you seriously want to get started in the stock market, try downloading this e-book I wrote. All it takes is 45- minutes to read from cover to cover. Don’t worry; two things: (1) it’s completely free, and (2) I can promise it won’t make your nose bleed. By the time you’re done reading it, you’ll be ready to start investing.”
3. Them: “Don’t you have to do it all day?”
Me: ”Ah, like what you see on TV or in movies? Nope. That’s different and they’re different. They are people whose job is to react to the stock market… it’s their professional career; it’s what they do for a living. They are called stock brokers or traders.
As for me, I’m just an investor. All it takes me 30 minutes during the weekend to keep myself informed. Sometimes I even miss a week or two.”
Me: ”Ah, like what you see on TV or in movies? Nope. That’s different and they’re different. They are people whose job is to react to the stock market… it’s their professional career; it’s what they do for a living. They are called stock brokers or traders.
As for me, I’m just an investor. All it takes me 30 minutes during the weekend to keep myself informed. Sometimes I even miss a week or two.”
4. Them: “Isn’t it risky?”
Me: “That’s what I thought! I was so scared of losing my money, and that’s exactly why it took me more than 6 months to get started. But now that I know what to do, I actually feel that my money is safer in the stock market than in the bank. (Of course, this is a white lie. I’ve always felt that my money isn’t “safe” in the bank because of inflation – which I had learned early on).
(To a person who’s never invested in the stock market, there’s no need to explain too much. They’ll just give you myth #2. The best way is to use this analogy.)
“Think of investing in the stock market like driving a car. We know that there are defensive drivers, and there are ‘!*@# singit ng singit’ drivers [editor’s note: singit means to cut other drivers in their lane]. Of the two kinds of drivers, which one will likely be in an accident? Or if ever, who will be in a worse / more dangerous accident? (Don’t wait for them to give an answer.) It’s the same with investing in the stock market. You can be a safe driver, or you can be a risky driver. Risky drivers (investors) are those who are impatient, don’t know/don’t follow the rules, always stepping on the gas, trying to grab every opportunity just to get ahead by a few seconds, which hardly matters in the long run. So it’s really all up to you.
“To get you started, I can give you a link to a ‘driving manual’ for the stock market. You can read it in 45 minutes or less. It’s very easy to understand. And it’s for free! It’s called The Stock Market Jumpstarter.“
(Again at this point, I’ll offer to teach them how to invest in the stock market at a scheduled time and place for free. But if they don’t have the time, I’ll just recommend that they read my free e-book: The Stock Market Jumpstarter).
Me: “That’s what I thought! I was so scared of losing my money, and that’s exactly why it took me more than 6 months to get started. But now that I know what to do, I actually feel that my money is safer in the stock market than in the bank. (Of course, this is a white lie. I’ve always felt that my money isn’t “safe” in the bank because of inflation – which I had learned early on).
(To a person who’s never invested in the stock market, there’s no need to explain too much. They’ll just give you myth #2. The best way is to use this analogy.)
“Think of investing in the stock market like driving a car. We know that there are defensive drivers, and there are ‘!*@# singit ng singit’ drivers [editor’s note: singit means to cut other drivers in their lane]. Of the two kinds of drivers, which one will likely be in an accident? Or if ever, who will be in a worse / more dangerous accident? (Don’t wait for them to give an answer.) It’s the same with investing in the stock market. You can be a safe driver, or you can be a risky driver. Risky drivers (investors) are those who are impatient, don’t know/don’t follow the rules, always stepping on the gas, trying to grab every opportunity just to get ahead by a few seconds, which hardly matters in the long run. So it’s really all up to you.
“To get you started, I can give you a link to a ‘driving manual’ for the stock market. You can read it in 45 minutes or less. It’s very easy to understand. And it’s for free! It’s called The Stock Market Jumpstarter.“
(Again at this point, I’ll offer to teach them how to invest in the stock market at a scheduled time and place for free. But if they don’t have the time, I’ll just recommend that they read my free e-book: The Stock Market Jumpstarter).
(Please note that I speak in Filipino when I’m explaining these. It’s just more natural for me!)So, there you have it, the 4 most common objections about the stock market and how to handle them. Hopefully this can help you in getting your friends to try it out, or at least be more educated by the time they are ready to try. Now go forth and spread this wonderful opportunity!
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