The stock market offers opportunities — but it also involves risk.
Understanding risk early helps you stay realistic, calm, and disciplined.
This lesson prepares you mentally before you invest real money.
Why Stock Prices Fluctuate
Stock prices change because of:
- Company performance
- Economic conditions
- Interest rates
- Global events
- Market sentiment
📌 Price movement is normal — stability is the exception.
Risk Is a Natural Part of Markets
Risk does not mean something is wrong.
It means:
- Outcomes are uncertain
- Prices move up and down
- Losses are part of the process
📌 Even the best investors experience losses.
Common Beginner Mistakes
Many beginners lose money due to:
- Expecting quick profits
- Following tips blindly
- Overtrading
- Panic selling during market falls
- Investing without understanding
📌 Most losses come from behavior, not lack of intelligence.
The Illusion of Easy Money
Social media often shows:
- Profits, not losses
- Success stories, not failures
- Short-term wins, not long-term reality
📌 The stock market is not a shortcut to wealth.
Why Patience Matters More Than Prediction
You don’t need to predict:
- Market tops
- Market bottoms
- Daily price movements
You need:
- A clear process
- Time in the market
- Emotional discipline
📌 Staying invested matters more than perfect timing.
Awareness Before Action
Before investing, always ask:
- Do I understand what I’m buying?
- Can I tolerate short-term losses?
- Is this aligned with my long-term goals?
📌 Awareness reduces regret.
Key Takeaways from Lesson 6
- Price fluctuations are normal
- Risk cannot be avoided, only managed
- Beginner mistakes are common — and costly
- Patience and discipline protect capital
- Learning comes before investing