Reason To Lose the Money In Stock Market
Here are some of the more common reasons:
1: “NO EXIT STRATEGY” The level of greed determines how much loss a person will incur in the stock market.
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Following the crowd - Some investors just follow blindly because they are unsure of what to do. So they buy stocks based on half-truths and rumors and end up losing a lot of money.
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Making investments based on emotions - This is a big mistake. Some investors simply do not know when to cut their losses. They let their emotions get the better of them. As a result, they pour more money into the stock market when they should have cut losses and moved on. This is tantamount to gambling, and should be avoided at all cost.
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Incomplete due diligence - Some investors are just plain lazy. Even with detailed prospectus and documentation lying in front of them, they just refuse to pick them up and digest the information.
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Fear. When investor is afraid of losing money in the stock market, he may eventually lose it. It takes a man to first see money with his mind before he can see it with his eyes.
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Ignorance. Ignorance is a killer and to kill ignorance about the stock market, investor need to educate himself by attending financial seminars, reading books and other materials about capital market.
Regards,
Usman,