Why Many Investors Lose Money Trading Stocks | Invest in the Markets

Rarely do we look at why many investors lose money trading stocks because our focus tends to be on what?s working, not what hasn?t worked. Yet, most investors can identify more with those that lose money than make it? so let?s learn from the errors of others. While this is certainly not an exhaustive list, take a quick peak and see if you recognize any of these reasons for why you?ve lost money in the past trading stocks.

Stock Trading Blunders

Rather than simply list some of the common errors investors make, let?s also offer some brief suggestions as to how we can correct these blunders? I hope you?ll throw a comment or two down below with your corrective measures too.

• False Expectations ? Beginning with our expectations is so critical? because many investors believe they can make quick money, with little or no risk, most of the time. They?ll read emails, listen to advisors and take in all sorts of very confident news? and soon they?re believing they can do no wrong. Please recognize no one is perfect? and if you invest for any length of time, at least some of your investments will result in losses. The key is minimizing those losses!
• Perfect Timing or No Timing ? The only perfect time to invest is in the past? that is to say, when you look back, it is easy to see those turning points. But in the moment, vision is not 20/20. So, this leads some to believe there is no point at all in timing their trades. Yet, these two mentalities (trying to find the perfect time or not considering the timing at all) has led to enormous losses for many investors. If you?ve been around here for a while, you?ll recognize there are better times to invest than others. Timing may not be everything, but it sure counts for a lot of the profits successful investors experience.
• Lacking an Exit Strategy?- Spending hours pouring over the fundamentals of a company or the technicals of the charts prior to buying a stock is not wasted time? unless there is no equal effort and attention given toward when one will also sell the stock. Having an objective exit strategy keeps investors from letting their emotions take over, especially when the trade has not lived up to their false expectations.

Can you identify with any of these trading blunders? What other common mistakes do you see in your own investing or in others? Take a few moments to leave a comment sharing why you think many investors lose money trading stocks!

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