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Why are middle-aged people still looking for ways out in the stock market.

76 Comments 2024-06-13

According to data statistics, the proportion of stock trading population aged 20-30 is less than 1%.

Young people almost no longer trade stocks.

Some say that it is because of the overwhelming propaganda on the internet about how bad the stock market is, so young people no longer trade stocks.

In fact, it is not the case. On the contrary, young people feel that the stock market is not exciting enough and the fluctuations are too small.

A large number of young people are fond of trading cryptocurrencies, enjoying the thrill of getting rich overnight, and also accepting the outcome of being destitute.

This is similar to the reason why young people love blind boxes.

However, in recent years, according to the data statistics of account opening by major brokers, the population aged 35-45, especially men, is the main force entering the stock market.

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If young people no longer trade stocks, why do middle-aged people still want to join the stock market?

Young people still understand that there are more losses than gains in the stock market, and most of them are "mowing leeks", while middle-aged people at least have a better understanding on the cognitive level. Don't they know that the stock market is fraught with danger and they still rush in desperately.

But what is the reason for this?Firstly, some people have made money.

Virtually everyone who enters the market is surrounded by people who have made money.

This is beyond doubt.

Only with real-life examples will people believe that money can be made in the market.

There are particularly many people entering the market during a bull market, and naturally, there are many fewer during a bear market.

Indeed, many people envy full-time stock traders, thinking they are very free and their lives are very comfortable.

In fact, only they themselves know the bitterness and hardships behind this.

Indeed, they have made money by taking advantage of the trend, but making money in the stock market is really not as easy as imagined.

So, watching others carry a load will never feel tired, and only by trying it yourself will you know.

Secondly, income is no longer rising.Most middle-aged people have encountered a bottleneck in their careers.

Especially in the past two years, the market has become too competitive, with job positions and opportunities becoming increasingly scarce.

Many people feel that no matter how hard they work in their careers, there is no room for advancement.

So naturally, they start looking for ways out.

Starting a business is difficult and tiring, so many middle-aged people consider trying their luck in the stock market.

After all, in their eyes, the difficulty of tapping on a keyboard is always easier than working hard physically and mentally.

Who would have thought that the stock market would become a bottomless pit, easy to enter but difficult to exit, with everyone having to shed a layer of skin.

Third, the investment returns are too low.

The decreasing investment and financial returns are another reason why many people want to put their money into the stock market to try their luck.

Interest rates have fallen too quickly in the past two years, with people still hoping for 4%, but only getting 2%.In this situation, it seems that stock trading is a way out.

Before knowing how difficult stock trading is, most people will think that their luck is not that bad and they can make some money when they enter the market.

Only after really entering the stock market do they find out how ignorant they are.

Just think about it, the whole economy is not good, so the investment returns are low, and the listed companies are not making much money.

Since this is the case, how can the stock market go against the current?

The fundamental logic is wrong, and entering the stock market for investment is to be slaughtered.

Fourth, the pressure of life is too great.

There are also some middle-aged people who go to stock trading because of the pressure of life.

Some people may not believe it, but the fact is indeed so.

When everything is not satisfactory, making money is difficult, work is not going well, and life is oppressive, investing has become the ideal way out for many people.Because they hope to get rich overnight, it's the same reason why some people who are very poor love to buy lottery tickets.

Pinning hopes on the capital market to improve the current situation is really unrealistic.

The cruel reality will eventually make life even worse for these people.

If you are at a dead end elsewhere, the stock market will definitely not be a good way out.

Because stock trading is actually more difficult than all aspects of life.

Therefore, the way out for middle-aged people is not in stock trading, but in continuous learning, which is the key.

Otherwise, a large number of machines will eliminate a large number of people now.

 

Is the stock market a way out?

The stock market is always a way out for a few people, and it requires experience accumulation.The essence of the statement is that in the stock market, only a small portion of people can make money, and experienced hands always have an advantage over novices. In any industry, time is always an insurmountable barrier.

In the investment circle, there are three things that are being competed for.

First, cognitive ability.

Cognition, in fact, is experience.

Most of the cognition in the stock market comes from practice.

Of course, if one can repeatedly study history and learn from it, it is possible to quickly accumulate a certain amount of experience.

But most of the cognition comes from the actual experience given by the market.

If just reading stock market books were useful, and relying on that to increase cognition, then everyone would have cognition.

In reality, cognition in the stock market can only be slowly accumulated through time and practice.Of course, middle-aged people who have experienced more ups and downs may accumulate knowledge more quickly and have a better foundation compared to young people. However, sometimes, established cognition can also become an obstacle to their progress.

Secondly, information capability.

There is another important ability in the stock market, which is the information capability. Strictly speaking, it is divided into the ability to obtain information and the ability to analyze information. The essence of the stock market is an information war, followed by a capital war.

Most retail investors receive information that is either wrong or only known after everyone in the market has known it. The effect of public information is the worst because everyone knows it, so it naturally becomes ineffective.

In the stock market, there is an emphasis on running ahead of time. The faster you run, the more meat you get. The reason why retail investors can only sip soup is because the news is delayed, and the reaction is half a beat slow.Sometimes, it's only after the stock price has soared to the sky that we suddenly understand why it has risen, and in the end, we are deceived by a small composition and become the "plate-catching warrior".

Third, execution ability.

Execution ability mainly refers to the ability to trade.

Many people will mention a word, called "mentality".

In fact, what mentality affects is the execution ability, affecting the accuracy of the transaction.

Most investors, when they personally go to the market to trade, will hesitate to buy and sell, which is a problem of execution ability.

The foundation of execution ability is mentality, but the execution ability itself needs to be practiced.

The more transactions are made, the more principles are naturally produced, and it is easier to make decisions when buying and selling.

Hesitation is a lack of confidence in oneself, always wanting to buy lower and sell higher, always hoping to wait and see.

Execution ability is the foundation of everything, especially in short-term trading.The stock market is a peculiar thing; a small number of people treat it as a money-printing machine, while the majority end up with their wallets emptied, a fact that cannot be changed.

Capital not only engages in mutual competition but also has to support a large number of people, which requires a significant amount of money.

Investing itself is an inevitable process of paying tuition fees, but not everyone who pays these fees will find a way out.

Therefore, whether middle-aged people should invest in stocks and whether there is value in stock trading is truly a matter of individual circumstances, with no standard answer.

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