6 Reasons Why Most People Lose Money in the Stock Market
When new investors get started in the stock market, many times they are disappointed when their purchase value drops.
Not understanding why or what happened, often times the investor makes rash decisions where even more money could be lost.
You are putting your hard earned money to work, so you must understand the “why” and “what” before investing in something.
1. Not Doing Any Research
Why People Lose Money in the Stock Market
Ignore the get rich quick pitches or the “must have” investments, you should be focused on your long-term investment growth.
2. Trying to Get Rich Quick
Why People Lose Money in the Stock Market
You should know the fees that are involved with buying funds or making stock purchases/trades. There are two money tools that can help you with your investments and catching fees: – Personal Capital – Blooom
3. Ignoring Fees
Why People Lose Money in the Stock Market
4. Not Diversifying
The goal with a diversified portfolio is to include various industries and categories that react differently from each other. This way it helps reduce risk, especially long-term.
Why People Lose Money in the Stock Market
Start to identify with the reasons, stick to your money gameplan, and protect yourself during rough stock market years. As you get older your investments and strategy will change, but for now it’s important to know why most people lose money in the stock market and not become part of that crowd.
Final Thoughts
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