Hey everyone, Kirk here again and welcome back to the daily call. On today's daily call, we’re going to talk about probably the three reasons why I think people are attracted to the stock market for the wrong reasons. I’ve scripted out here three particular, I guess paradigms or things that we want to compare and contrast. When I boil this down, I was thinking about this before I started recording the show. I think there's a difference between what people actually are going after and what is potentially required of them to be successful and therein lies the difference between why people are invested or attracted to the stock market for the wrong reasons.
The first one here is I think people are naturally attracted. There's no overstating this or overshadowing the reason why people get into the market and that's because they’re on a get-rich-quick. And while I don't condone on any level, get-rich-quick, what I do think people are attracted to is the allure of potentially making a lot of money in a very short time period. Look. We’re all pretty much greedy animals when it comes to our money and wealth building and there's no doubt that that's why most people are actually poor because they do the wrong things for potentially the right reasons or the right setup, but they just have no patience and they’re trying to get rich quick and they end up making really bad decisions. But I think people are attracted to any market. It doesn't necessarily have to be the stock market. If you look at the cryptocurrency market over the last couple of months, they have this huge euphoria in cryptocurrency, everyone was attracted to it, people were taking out loans on their houses to buy cryptocurrency. It was crazy because people were attracted to the get-rich-quick. Now, contrast this to what actually happens and it's a true wealth building vehicle and for a wealth building vehicle like the stock market or the options market, it takes time to work out. It takes compound interest and patience and many, many years for systems and investment strategies to work out and that creates a little bit of a disconnect.
The second thing is I think people are attracted to the market for the lifestyle that they think trading in the market or investing in the market is going to give them. And while that can be definitely true that trading can give you a decent lifestyle… I’m not saying that it can’t. It gives you a lot of freedom. There is a lot of work that’s involved. And I think what people see on the outside is they see people driving Lamborghinis and trading from the beach and that's not really how it happens. In fact, that’s probably the antithesis of how it happens. There is a lot of work that's involved. There's probably a lot of frontend work on your part to find a strategy, find a system that works for you, that fits well within your lifestyle and then to consistently monitor that and monitor your portfolio. And so, I think there is a disconnect between what people are actually looking for and maybe what actually has to happen. Now, again, I don't think that it's totally your head down in the computer, in the sand all day every day. I think you can build a great lifestyle around trading and investing, but it's not independent of having to put in some work. You have to put in some work to get there.
The third thing that I want to talk about is the idea of emotions versus systems. Many people get started in the stock market because they like a company or they think they have an edge up by buying some hot tech company or hot biotech company that they know or understand. And I'm all using air finger quotes for all of these. You just can’t see me doing it. But the reality is that investing in the market is not an emotion game. In fact, it's far from it. The best investors out there and the best traders use systems and strategies and work the numbers. And so, although people are attracted to the market because they like Coca-Cola or they like Apple stock initially, that's not what is going to get them eventually to being able to build a sustainable income producing system or wealth producing system investing in the markets. You have to have those systems, those concrete strategies in place and realize that it's probably more of a systems game than it is an emotional game. Hopefully this helps out. As always, if you guys have any questions, let me know and until next time, happy trading!