Why Do People Loose Money in Stock Market?

We all know that stock market is an long-term investment tool. It rewards investors who stayed put for long-term! Past history has proved this already!

Even though it is proven that stock market rewards investors in the long term, many investors(some traders too)loose their hard-earned money and blame stock market is “Gambling”.

But the reality is stock market is functioning of businesses. By investing in shares of a firm, you are becoming a share-holder of that firm and if the firm business grows, automatically share-holders(also known as “Partners of that firm”)get benefitted from that investment This is what stock market investing means. You purchased a stock and if that firm business is above the market expectations, you would earn huge money through stock market.

But even the share-holders knows this fact, most of the investors are loosing money in the stock market. Do you know the reason why? –

  • Lack of proper research on the company(stock)
  • Uncontrollable emotions
  • Getting Panic in bear markets and selling their shares in a hurry
  • Being Greedy and purchase more shares when the market is at peak level

are some of the reasons people loose money in stock market.

Even there are evidences that stock market rewards investors in the long-term, getting panic in bear markets and being greedy in bull markets is the main reason most of the investors loosing money in the stock market.

But to be a successful investor you should invest with courage in bear market. Past history has proved this and you can search on “Google” for the evidence. In today’s digital world there is vast information available on net that “Real Wealth” is created in bear market and those who stayed long-term.

But due to uncontrollable emotions(Greed and Fear) investors are loosing money. You can get motivated from the real-life stories of warren buffer, charlie munger and if you follow their strategies you would also become a “Star Investor”. There are lot of wealth-creation stories available on Google showcasing their real-life investing strategies. As net is available widely now-a-days you can search on Google and get motivated and become a successful investor in the stock market.

Stock Market is a reflection of the economy. There are winners and losers in each market phase. Ours duty is to identify the winners and stayed invested. Finally It’s our emotions which decides our wealth in the stock market as our rational and irrational decisions is the cause of our wealth creation in the stock market.

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