Equity Trader Tech

Reasons why people lose money in stock market

1) Investing based on TIPS from friends and colleagues.

2) Getting inspired from someone getting rich in stock market and then gambling with larger amounts and leverage without proper research and knowledge

3) Trying to make money quickly by investing in Futures and option

4) Investing in stocks and when it goes up slightly they book profits early and when it goes down they stand deep hoping for recovery and lose their life savings.

5) One of the main reason for loss is being impatient and panicky. If you invest in quality stocks and when it is in a phase of consolidation or goes slightly down people start losing patience and exit with loss and the process repeats in their next investment too.

6) Investing based on reading any news of the company in financial magazines or newspaper.