The stock market is a completely different playing field. Let’s take the example of an engineering student from an IIT, who has a first class degree and understands the world of engineering very well. This does not mean s/he will be able to fly a plane. This student would then have to do a course in flying and get the required knowledge to be able to fly. And just the knowledge of flying will not make him/her a good pilot. S/he has to go through a process of practising.
In investing, you need knowledge of the market, in particular. It is not just about the education. To become a successful investor, you need to learn the nitty-gritty of investing. Obviously, your education would play a significant role in the way you think and look at things, which can help you understand this investing business faster and better.
Let’s take another example. If you want to become a CA, you go through a process of education, articleship, internship, job and then your own practice. But in investing, you don’t want to follow any process.
The general attitude is that it’s an easy business and anyone can just ‘jump’ into the market and succeed. But it never happens that way. It’s a double-edged sword. One can lose his capital in no time. The misconception in the minds of people is that making money in the market is very easy.
But you have to remember that the stock market is a place to make easiest money in the hardest way. The path is very complex, and you never get answers to a lot of things.
There is no short cut to it. You need to learn and analyse the principals of investing and implement them according to your own nature. Here one size doesn’t fit all. Education will give you wisdom to analyse things in right perspective, but that does not ensure success. Remember, no academic degree can guarantee you success in the stock market.
To be successful in the stock market, you need to apply both your education and knowledge of investing and experience a few failures, which are a sure shot mantra for success. If you have not failed, you are still unstable and fragile.
Road to success in stock market goes through failures.