What can you learn from the stock market?

Question

What can you learn from the stock market?

Answer 1

you learn that money comes and goes

Answer 2

You can learn quite a lot.  I know that for myself, investing in securities has taught me a lot about business, economics, global political issues and trends, etc.  

When it's your own money on the line, you pay attention to things you might not have before, I suppose.

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Answer 3

you can learn each and everything of life from the stock market

Answer 4

The stock market and being involved in it as an investor can teach you a lot.

1) Teaches you a lot about psychology. Group psychology, fear, greed, and hope are on display everyday in the action of stocks. Stocks go up, greedy people rush in to get on the band wagon, the initial buyers jump ship, and the novices who bought at the top, than hope that things will turn around as the stock falls further, eventually fear takes hold and the novices who bought at the top, sell, and the experienced investors jump back in and the whole cycle starts over again.

No matter what the era, stock market movements repeat over and over again because of the fact that human psychology doesn't change.

2) It also teaches you about the economy to some degree and how to predict it long before the 'experts' can. The stock market often predicts future economic activity rather than coincides with or follows it. It is a forward looking organism, that is why you will often find the stock market actually does pretty well toward the last 1/3 of a recession, when most people are feeling the gloomiest and economists and the media are so demoralized by things. The smart money is buying in anticipating things to get better in months down the road. By the time economic activity has picked up and the novices and media pick up on, the stock market usually has already rallied significantly.

3) Lastly it will also teach more about yourself if you actively manage your own money. The same psychologic elements that you can see on display in others, are in play in yourself to differing degrees, and unless you can recognize them, you won't be successful.

Answer 5

You learn very quickly if you have a strong stomach

Answer 6

You can learn why gambling is bad.

Answer 7

Well, to be successful with the stock market environment, you have to learn how to be disciplined.  How to develop a mental structure that allows you to be confident and consistent in and environment that it unpredictable.  You need to learn how to develop a system of rules that define who you are as a trader.

Without developing a trade plan, the only thing you'll learn from the stock market is it will happily and willingly take all of your money.