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Why Investors lose money in Stock Market ?

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Rosh_0007
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Why Investors lose money in Stock Market ?

-Exit in panic

-Buying penny stocks

-Late entry in stocks (FOMO)

-Following advice on SMS/WhatsApp

-Repeated averaging when stock goes down

-Misconception: stock is cheap if it is below 100

-And stock is costly if it is 1000+

https://cdn0.desidime.com/attachments/photos/711170/medium/7924094ahead-of-market-12-things-that-will-decide-stock-action-on-monday.jpg?1631446103

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Inferno Inferno
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because they believe in miracles and play stock market like casino

Post Tycoon Post Tycoon
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I want to learn and start investment in stock market
Plz help

Pro Analyst Pro Analyst
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Becoz they think unko news pta lag gyi hai abt stock movement but they don’t know unn tak news pahunchaai gyi hai…

Deal Subedar Deal Subedar
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Jb koi loss krega tbhi koi gain krega ,,😄

Deal Major Deal Major
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vipin13 wrote:

Jb koi loss krega tbhi koi gain krega ,,😄

True Story!! smile

Hunk Hunk
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Why do people lose money in the stockmarket

  • People give up too early. In trading, we can’t hit 100/100 trades. If we are making money then someone is losing the money. So, calculated risks are important. People give up and miss the upcoming winning trades. https://cdn0.desidime.com/attachments/photos/711191/medium/7924730QFFKVef.jpg?1631452643 Source: https://imgur.com/a/J...IW Where x means stoploss hit and dashes mean entry and tick marks mean successful exits. It’s for demo purpose only. If one did not trade after losing money then one is out of the market. 🙂
  • There are myths associated with long term investments. Some companies will fail. Diversification is important. Without diversification people incur losses.
  • Trading in future and options require big capital. To recover losses we need to deploy capital. So, losses should not be bigger than 10% of the capital employed.
  • There is no right answer here. For some speculation is good, for some investment is good, for some people like me both are good and for some nothing is good. Things become too much personal you know. There are many ways of earning money. Stock market is only one of the many ways.
  • There are rumors regarding fear and greed. Without greed we won’t place a trade order and without fear stoploss will be missing.
  • One has to develop many setups for many possible situations. Now freak trades are going on. So, with hedging people are losing money. There is a time and place for everything.
  • One can’t be right about everything. I was partly wrong about shorting TCS and I was right about Indiamart. Nobody’s ledger is full of green things. There will be some reds and some greens.
  • In day trading without indicators one can’t be successful. Yes, price action is the key, yes volume is necessary. But we need more sophisticated things than that. Indicators are like subtitles, which will allow you to understand few difficult words. 🙂
  • People are so much concerned about the reasons. Outcome is more important. Bam! I have lost money. There is no consolation for that. Reasons will generate sympathy. But shall the same reason repeat twice? Trump lost and market boomed. See! Nifty went from 7500 to 17000 plus. We will come to know of the reasons later. Those who invested made money.
  • Fear of Missing Out is real.
  • Fate and luck are real things.
  • Long term investments don’t guaranty profit and short term investments don’t guaranty profits either. Ex: Kodak and Banknifty weekend expiry trades. 🙂
  • Like every job few things are required. If one has to play sector specific then one has to do some homework. If one has to do some trading stuff then one has to do some homework. I had to find my own setup for intraday. I have to think of something before picking a stock. Indiamart was picked because it had something. What? It is Flipkart and Amazon for SME. After lockdown it had to go up. Same is with Textile and real estate stocks. They didn’t work for a long time. Market’s horses change after a shake up.
Cool Cool
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bikidas2060 wrote:

Why do people lose money in the stockmarket

  • People give up too early. In trading, we can’t hit 100/100 trades. If we are making money then someone is losing the money. So, calculated risks are important. People give up and miss the upcoming winning trades. https://cdn0.desidime.com/attachments/photos/711191/medium/7924730QFFKVef.jpg?1631452643 Source: https://imgur.com/a/J...IW Where x means stoploss hit and dashes mean entry and tick marks mean successful exits. It’s for demo purpose only. If one did not trade after losing money then one is out of the market. 🙂
  • There are myths associated with long term investments. Some companies will fail. Diversification is important. Without diversification people incur losses.
  • Trading in future and options require big capital. To recover losses we need to deploy capital. So, losses should not be bigger than 10% of the capital employed.
  • There is no right answer here. For some speculation is good, for some investment is good, for some people like me both are good and for some nothing is good. Things become too much personal you know. There are many ways of earning money. Stock market is only one of the many ways.
  • There are rumors regarding fear and greed. Without greed we won’t place a trade order and without fear stoploss will be missing.
  • One has to develop many setups for many possible situations. Now freak trades are going on. So, with hedging people are losing money. There is a time and place for everything.
  • One can’t be right about everything. I was partly wrong about shorting TCS and I was right about Indiamart. Nobody’s ledger is full of green things. There will be some reds and some greens.
  • In day trading without indicators one can’t be successful. Yes, price action is the key, yes volume is necessary. But we need more sophisticated things than that. Indicators are like subtitles, which will allow you to understand few difficult words. 🙂
  • People are so much concerned about the reasons. Outcome is more important. Bam! I have lost money. There is no consolation for that. Reasons will generate sympathy. But shall the same reason repeat twice? Trump lost and market boomed. See! Nifty went from 7500 to 17000 plus. We will come to know of the reasons later. Those who invested made money.
  • Fear of Missing Out is real.
  • Fate and luck are real things.
  • Long term investments don’t guaranty profit and short term investments don’t guaranty profits either. Ex: Kodak and Banknifty weekend expiry trades. 🙂
  • Like every job few things are required. If one has to play sector specific then one has to do some homework. If one has to do some trading stuff then one has to do some homework. I had to find my own setup for intraday. I have to think of something before picking a stock. Indiamart was picked because it had something. What? It is Flipkart and Amazon for SME. After lockdown it had to go up. Same is with Textile and real estate stocks. They didn’t work for a long time. Market’s horses change after a shake up.

Biki bhai aap job k sath bhi day trading kar lete ho?

Hunk Hunk
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raman12 wrote:

Biki bhai aap job k sath bhi day trading kar lete ho?

Bhai. Only weekly expiry that too for 20-25 mins. 😥😥😥

Deal Baba Deal Baba
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bikidas2060 wrote:

Why do people lose money in the stockmarket

  • People give up too early. In trading, we can’t hit 100/100 trades. If we are making money then someone is losing the money. So, calculated risks are important. People give up and miss the upcoming winning trades. https://cdn0.desidime.com/attachments/photos/711191/medium/7924730QFFKVef.jpg?1631452643 Source: https://imgur.com/a/J...IW Where x means stoploss hit and dashes mean entry and tick marks mean successful exits. It’s for demo purpose only. If one did not trade after losing money then one is out of the market. 🙂
  • There are myths associated with long term investments. Some companies will fail. Diversification is important. Without diversification people incur losses.
  • Trading in future and options require big capital. To recover losses we need to deploy capital. So, losses should not be bigger than 10% of the capital employed.
  • There is no right answer here. For some speculation is good, for some investment is good, for some people like me both are good and for some nothing is good. Things become too much personal you know. There are many ways of earning money. Stock market is only one of the many ways.
  • There are rumors regarding fear and greed. Without greed we won’t place a trade order and without fear stoploss will be missing.
  • One has to develop many setups for many possible situations. Now freak trades are going on. So, with hedging people are losing money. There is a time and place for everything.
  • One can’t be right about everything. I was partly wrong about shorting TCS and I was right about Indiamart. Nobody’s ledger is full of green things. There will be some reds and some greens.
  • In day trading without indicators one can’t be successful. Yes, price action is the key, yes volume is necessary. But we need more sophisticated things than that. Indicators are like subtitles, which will allow you to understand few difficult words. 🙂
  • People are so much concerned about the reasons. Outcome is more important. Bam! I have lost money. There is no consolation for that. Reasons will generate sympathy. But shall the same reason repeat twice? Trump lost and market boomed. See! Nifty went from 7500 to 17000 plus. We will come to know of the reasons later. Those who invested made money.
  • Fear of Missing Out is real.
  • Fate and luck are real things.
  • Long term investments don’t guaranty profit and short term investments don’t guaranty profits either. Ex: Kodak and Banknifty weekend expiry trades. 🙂
  • Like every job few things are required. If one has to play sector specific then one has to do some homework. If one has to do some trading stuff then one has to do some homework. I had to find my own setup for intraday. I have to think of something before picking a stock. Indiamart was picked because it had something. What? It is Flipkart and Amazon for SME. After lockdown it had to go up. Same is with Textile and real estate stocks. They didn’t work for a long time. Market’s horses change after a shake up.
pray pray
Deal Subedar Deal Subedar
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Maverickz wrote:

Investors never lose money in the stock markets as they put money in a stock considering the business’s fundamentals. They know when to exit or how long to hold a particular business / stock and know the correct price at which they enter into a stock. They very well know how to control their greed and fear. They simply run a business understanding the risks and returns associated with such business.

The ones who lose money in the stock markets are novices / gamblers. Hence, according to me, everyone putting their money in the stock market is not to be considered as an investor. It’s like calling everyone who holds a paint brush in his hand, a Picasso or Da Vinci.

They know when to exit or how long to hold a particular business / stock and know the correct price at which they enter into a stock.
how do new people in market who want to become investor one day learn this sir?

Deal Subedar Deal Subedar
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BubbleBoyChickenLittle wrote:

In Equity investing, finding a good n stable business is not a tough task.

Tough is – Holding the business through volatility and your own behaviour/temperament.

That is why only a few % of investors are able to make good money in long term.

EQ>>>IQ

https://twitter.com/SlowCompounding/status/1436...

sirg what is eq?

Deal Lieutenant Deal Lieutenant
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kukdookoo wrote:

They know when to exit or how long to hold a particular business / stock and know the correct price at which they enter into a stock.
how do new people in market who want to become investor one day learn this sir?

According to me, the following are the points through which new comers can become investors by learning and understanding the following:

1. The business potential of the stock in which they think of putting money.
2. The valuation methods and techniques to value different nature of businesses
3. Good continuous research to get timely updates about the company.

These are pointers for investors who rely on fundamentals.

Entertainer Entertainer
Admin
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kukdookoo wrote:

@Rosh_0007
-Late entry in stocks
what is the advice for new people against this line?

If stock is all time one should wait for the Dip…

Deal Subedar Deal Subedar
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Maverickz wrote:

According to me, the following are the points through which new comers can become investors by learning and understanding the following:

1. The business potential of the stock in which they think of putting money.
2. The valuation methods and techniques to value different nature of businesses
3. Good continuous research to get timely updates about the company.

These are pointers for investors who rely on fundamentals.

thanks Oops, You cannot give karma again right now

Deal Cadet Deal Cadet
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Rosh_0007 wrote:

If stock is all time one should wait for the Dip…

Never wait for dip, keep on investing so that others can keep on profiting and you also have your share of profit. Sometime you need to live for others.

Deal Lieutenant Deal Lieutenant
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Rosh_0007 wrote:

If stock is all time one should wait for the Dip…

Don’t know who invented this statement smile smile, but it is generally not true for companies with good business model and fundamentals.

Further, the learned one who invented this statement did not specify how much dip is required smile smile smile and this leads to people not investing in high quality businesses…. For Eg. HUL, HDFC Bank keep on making new all-time highs every year since the last decade and retail market players just keep on waiting for that dip from such highs.

Deal Subedar Deal Subedar
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Rosh_0007 wrote:

If stock is all time one should wait for the Dip…

all time one
means? all time high?

should wait for the Dip
isnt this like timing the market?

Deal Newbie Deal Newbie
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Subject line is not right.
Investors never lose money in stock market speculators do.

Tech Guru Tech Guru
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• Market Manipulation ( by Underlying Invisible forces) 

Lack of Strict  Regulatory oversight.
( Example: Fraud by one of the biggest brokerage firms Karvy )

Wrong Data  (  fraudulent data presented by companies themselves)

Deal Baba Deal Baba
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Maverickz wrote:

Don’t know who invented this statement smile smile, but it is generally not true for companies with good business model and fundamentals.

Further, the learned one who invented this statement did not specify how much dip is required smile smile smile and this leads to people not investing in high quality businesses…. For Eg. HUL, HDFC Bank keep on making new all-time highs every year since the last decade and retail market players just keep on waiting for that dip from such highs.

if sector having out of control bullisness like metal sector previouslly and fmcg and it sector now, then yes we have to buy at cmp only pensive

else we can wait for dip hushed

Cool Cool
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If you want to earn money from share market then avoid intraday, F&O. Just do investment in fundamental stocks.

Missing