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[anand04]

Reason To Lose the Money In Stock Market

Here are some of the more common reasons:
1: "NO EXIT STRATEGY" The level of greed determines how much loss a person will incur in the stock market.

2) Following the crowd - Some investors just follow blindly because they are unsure of what to do. So they buy stocks based on half-truths and rumors and end up losing a lot of money.

3) Making investments based on emotions - This is a big mistake. Some investors simply do not know when to cut their losses. They let their emotions get the better of them. As a result, they pour more money into the stock market when they should have cut losses and moved on. This is tantamount to gambling, and should be avoided at all cost.

4) Incomplete due diligence - Some investors are just plain lazy. Even with detailed prospectus and documentation lying in front of them, they just refuse to pick them up and digest the information.

5) Fear. When investor is afraid of losing money in the stock market, he may eventually lose it. It takes a man to first see money with his mind before he can see it with his eyes.
6) Ignorance. Ignorance is a killer and to kill ignorance about the stock market, investor need to educate himself by attending financial seminars, reading books and other materials about capital market.
Regards,
Anand,