Things That Make You Lose Money in the Stock Market

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The Stock Market is a place where millionaires are made. its a place where the principle of taking from those that do not have ( The poor and the not too Rich), and give to those who are already rich or extremely rich applies.People do not just loose money in the Stock Market for no just cause or reason. There are a lot of reasons why people loose money in the stock market. These reasons include:

A) IGNORANCE
It has been established that 80% of stock investors, invest based on rumors and not on real and true facts. Ignorance is a major reason why many loose money in the capital market. The world best investor said that he cannot invest in a stock that he does not know their product. How then can you win in a battle that you are not well informed.

B) GREED
If you are greedy, you can never ever make much money inn the capital market because you cannot beat the market always. Greed is another major factor that make investors loose money by shelving their get out price because the price of the stock is going up and they hang on to get a higher price than what they planned for.

C) POVERTY MENTALITY
Most investors mistake their poverty mentality as being smart by dodging to pay for knowledge. Most investors in this category prefer to invest in ignorance instead of paying for vital information that will help them.

D) SENTIMENT
Stocks are not your friend, so do not fall in love with any stock rather, treat them as your slave by using and dumping them when you have achieved what you had in mind while buying them.Buying stocks on sentiment includes buying a stock because you like the stock or to help a friend or relation meet their target. Never buy a stock based on your sentimental feelings.

E) WRONG INFORMATION
when you are not informed, you are deformed and half education is a greater problem compared to illiteracy. Attend seminars, read business magazines and listen to tapes to get informed and do cross check any information that comes your way before making use of it. Also beware of sponsored analysis so you do not fall prey to them.



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