Losing Money in Stock Market
Losing Money in Stocks?
Are you making enough profit from stock market. Or you are losing on daytrading stocks? Are you the one who jump on any stock and later regret it? There some people, who always do the right thng at the right time. For them investing is always successful. If you are not one of them, if you are not making enough profit from stock market, read thisa carefully. Is your investing strategy right? How are you getting the leads for investing in stock market?
Still if you can make it, stock market is not for you. I don’t recommend loosing all your hard earned money in stocks. If you are hit hard two or three times, then don’t try to makeup the loss. My humble advise, of you are not comfortable at , don’t do it. Don’t waste your hard earned money, just because your friend or relative made a killing in the stock market.
Top Reasons for Losing Money in Stock Market
- Buying or selling strictly based on Entertainment shows like Cramer’s – Cramer has a tendency to make many picks and recommendations, studies have shown his picks to be both right and wrong about 50% of the time. The Cramer show should be appreciated for it’s humor and entertainment value.
- Investigate for buying, weather the company has a usable product, or likely to come with a usable product in the near future.
- Incase of Penny Stock there are so many people floating shell company and remains as a shell company for so many years. the fact is that they make a living by that. They periodically bump the stocks with nice press release, and sell the shares. Then they start buy back as the price go down. This is a cyclic process, and they make lots of money in the process.
- Buying a stock because it “looks cheap.” – The share price of a stock should not be a determining factor when buying stocks. A $5 stock is no cheaper than a $15 stock. If both stocks go up 15%, you gain that same percentage in both stocks. (works same way with losses also).
- Investing is like fishing. When there is fish on the net grab it.
- Falling in love with a stock – Too many investors fall in love with a stock and refuse to close out of it even when the writing is on the wall. A stock should be treated as an investment and if that investment turns sour, one should get out of it as fast as possible. Just remember no stock remains a hot stock to buy forever.
- Following the masses – All too often a person would just buy a hot stock because they see everyone else buying and feel that it cannot go down. This type of investor often ends up being the “bag holder.” They are left holding the bag when the stock turns sour and the price drops.
- Spam messages – Buying a stock from an email that you received recommending the stock is one of the worst way to invest. Usually these stocks are penny stocks that have little or no value and will end up going belly up at some point. Do not buy stocks from spam emails, it’s a negative gamble. Over my years of investing, I have never seen a profitable stock that was recommended by a spam message.
- Buying a stock without Due Diligence – Research and Research! Buying the next hot stock requires you do proper diligence or it can be a flop that leads to a loss. It’s a good idea to get tips from sites like Hot Stocks to Buy but it’s very important that you do your own due diligence prior to any purchase. This has to be one of the major reasons why investors lose money in the stock market. Always perform due diligence before putting your hard earned money into any investment. The goal of investing in stocks is to take the guessing and gambling factor out of the equation.