Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Forex Trading Management: The Importance of Being Prepared - 19th Feb 19
Gold Stocks are Following This Historical Template - 19th Feb 19
Here’s Why The Left’s New Economic Policies Are Just Stupid - 19th Feb 19
Should We Declare Emergency for Gold? - 19th Feb 19
Why Stock Traders Must Stay Optimistically Cautious Going Forward - 19th Feb 19
The Corporate Debt Bubble Is Strikingly Similar to the Subprime Mortgage Bubble - 18th Feb 19
Stacking The Next QE On Top Of A $4 Trillion Fed Floor - 18th Feb 19
Get ready for the Stock Market Breakout Pattern Setup II - 18th Feb 19
It's Blue Skies For The Stock Market As Far As The Eye Can See - 18th Feb 19
Stock Market Correction is Due - 18th Feb 19
Iran's Death Spiral -- 40 Years And Counting - 17 Feb 19
Venezuela's Opposition Is Playing With Fire - 17 Feb 19
Fed Chairman Deceives; Precious Metals Mine Supply Threatened - 17 Feb 19
After 8 Terrific Weeks for Stocks, What’s Next? - 16th Feb 19
My Favorite Real Estate Strategies: Rent to Live, Buy to Rent - 16th Feb 19
Schumer & Sanders Want One Thing: Your Money - 16th Feb 19
What Could Happen When the Stock Markets Correct Next - 16th Feb 19
Bitcoin Your Best Opportunity Outside of Stocks - 16th Feb 19
Olympus TG-5 Tough Camera Under SEA Water Test - 16th Feb 19
"Mi Amigo" Sheffield Bomber Crash Memorial Site Fly-past on 22nd February 2019 VR360 - 16th Feb 19
Plunging Inventories have Zinc Bulls Ready to Run - 15th Feb 19
Gold Stocks Mega Mergers Are Bad for Shareholders - 15th Feb 19
Retail Sales Crash! It’s 2008 All Over Again for Stock Market and Economy! - 15th Feb 19
Is Gold Market 2019 Like 2016? - 15th Feb 19
Virgin Media's Increasingly Unreliable Broadband Service - 15th Feb 19
2019 Starting to Shine But is it a Long Con for Stock Investors? - 15th Feb 19
Gold is on the Verge of a Bull-run and Here's Why - 15th Feb 19
Will Stock Market 2019 be like 1999? - 14th Feb 19
3 Charts That Scream “Don’t Buy Stocks” - 14th Feb 19
Capitalism Isn’t Bad, It’s Just Broken - 14th Feb 19
How To Find High-Yield Dividend Stocks That Are Safe - 14th Feb 19
Strategy Session - How This Stocks Bear Market Fits in With Markets of the Past - 14th Feb 19
Marijuana Stocks Ready for Another Massive Rally? - 14th Feb 19
Wage Day Advance And Why There is No Shame About It - 14th Feb 19
Will 2019 be the Year of the Big Breakout for Gold? - 13th Feb 19
Earth Overshoot Day Illustrates We are the Lemmings - 13th Feb 19
A Stock Market Rally With No Pullbacks. What’s Next for Stocks - 13th Feb 19
Where Is Gold’s Rally in Response to USD Weakness? - 13th Feb 19

Market Oracle FREE Newsletter

The Real Secret for Successful Trading

Here’s How You Can End Up Losing All Your Money In The Stock Market

Stock-Markets / Stock Markets 2016 Feb 03, 2016 - 06:32 PM GMT

By: Boris_Dzhingarov

Stock-Markets If you want to increase your wealth and make more money, you want to consider stock investments. This is quite obvious but there is no real guarantee that you are going to succeed. The statement is true even in the event that you use a perfect strategy. Unfortunately, problems happen. The real problem is that many do not actually know why they lose money. If you find yourself in such a situation and your friends figure out that they shouldn’t loan you more money to invest, consider the following mistakes.


01 – Using Day Trading

Day trending basically revolves around opening and closing a trade in the same day, with the purpose of making a huge profit. The problem is that most of the traders are going to lose their money when their only investment type used is day trading.

Remember the fact that there are commission charges that come from the broker. If you perform many trends every day, those amounts add up. You may have successful day trading sessions and still lose money because of those commissions.

02 – Greedy Buying And Panic Selling

When you invest, you want to buy at a low amount and then sell at a high amount. Because of a lack of experience, you can end up doing the opposite. As stocks take a dive, you end up in panic and you sell since you think you will end up losing more. When a stock is going up, you buy because you are greedy to get a good payday. In both cases you can end up with huge loses.

The smart investor is going to invest in the quality stocks and will not focus solely on what is happening right now on the market. A long term investment is necessary in order to be profitable as you focus on stocks. If you find yourself losing money really often, this is most likely the reason why it happens.

03 – Investing In Penny Stocks

Too many people look for penny stock investments. There are some such stocks that can make you rich but this is something that rarely happens. Combine this with the fact that there are various ads promising huge returns when you invest in penny stocks and you are tempted to basically lose money.

Only the highly experienced investor should consider penny stocks. When you reach that level, you understand what you are up against and you can take the losses that almost always appear with these stocks.

04 – Investing With Loaned Money According to Tribal Installment Loans, many clients take out loans and then use them to invest in stock, eventually losing the money. One of the really important parts of investing in stocks is to be as objective as possible. When you invest with money that is not actually yours, this is quite impossible for you to be successful if you are not really experienced. It is always recommended that you start investing only with money that you can afford to lose. That will help you to maintain a clear head while investing.

By Boris Dzhingarov

© 2016 Copyright Boris Dzhingarov - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules