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 GMTBy: Boris_Dzhingarov
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.
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