Why do people Loose Money

This Article is for all, Those who invest and who play in market. I have seen many people complaining that they have made loss in market, but have you asked yourself why did you make loss?

You blame others for your mistake, but it is not like that. If you really want to earn money from market, then you must control your greed and other things which i have discussed here.

You can completely avoid loss in market and create win win situation each time. Here I will share my experience with you guys. Whenever people hear about market either they get scared of losing money OR they think it’s very easy to earn money in stock market.

One thing i would like to tell you that before you earn you must learn the thing. Follow these rules strictly to earn money. 

Greed: 

If you want to enjoy the market first thing you must remove Greed from your mind. Why I am saying this, I have seen that most of the people become sad when they sell stock in profit and when stock price goes up again they regret and think it will go up again and they try to buy that stock at high price. But they forget that market always give opportunity.

             

let’s take an example You have bought a Stock for price Rs 100/- then sold at Rs 110/- you made profit of 10% which is very good. But when the stock price goes up again say to Rs 115/- people become sad, I don't understand why? When you have already made profit then what is the reason to become sad.                

Then you try to buy share at Rs 115/- thinking that it will go up again, but when you buy the share, the share price comes down and you start thinking that it will go down again and you force yourself to sell the stock at low price.

Now I want you to ask why did you buy the stock again? At the end you made loss, also you paid brokerage and all other charges.

This is the first thing where all players fall.

Solution is to avoid loss in this scenario wait for the consolidation or best way is stick to other stock as there are numerous stocks present in market.  

            

Fundamental:

The most preferred word in market. But most of the people do not focus on this word. They buy the stock at high price based on news and comes out with loss.

Fundamental, It is the word of safety, It is word of learning and it is nothing but all. Once you understood the fundamental, I bet, you won’t make loss. 

Revenge: 

I have also seen, not seen in fact I made several mistakes in market with the intention of revenge that I have made loss in this stock and I will take back my money this stock only. At the end I ended up myself with more loss.

So, don't do that, if you have loss your money, don't go for revenge, just chill yourself, go for other stock, which can recover your loss also give profit.

            

Patience: 

The most famous quote "Patience is the Key to Success" but in market it is not always correct. Why?? it is because of fundamental. If you have bought good fundamental stock, then only it works. But if you have gone with the stock which you don't know and you have kept patience then you will lose.

So, it depends on the stocks which you have selected.

Tip providers:

It is advisable to all that they stay away from Tip providers. Nobody can predict movement of market so it’s better to learn market, Once you learn you will earn.

I request you, don't fall in trap of Tip providers.

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