Why 99% Of People Loss Money In Share Market? This question comes to the mind of every new trader and investor because even when they themselves come to the stock market, they lose their money, then they feel that the stock market is gambling and many different ideas in their mind Come. Many people even invest money in the stock market by taking loans and they lose it. So in this post, why do we people lose money in the stock market and what mistakes do they always lose and what should they do so that they can profit. You will know the answers to all these questions, so if you have not shared this post yet, please share it and by commenting let us know how you liked this post.
Why 99% Of People Loss Money In Share Market?
99% of people lose money in the stock market. Before knowing the answer to this question, we have to know about how many types of people are there in the stock market. Because if we do not know who are the people in the stock market and how they lose money, then we will never know how they lose money and why they lose money? And how can he come to profit?
Generally speaking, there are three types of people in the stock market, in the first category there are traders who do intraday trading, secondly, there are swing traders in the category who buy stocks for some time, and the third category is Investors who invest for a long time.
Why Intraday Trader Loss Money In Share Market And How To Be Profitable In An Intraday Trading?
According to a general survey, 95% of the people who do intraday trading in the stock market lose their money but there is some main reason behind their loss, due to which they lose and 5% of the people are not those mistakes. Because of which we profit, so below, we will know about all these Mistakes and we will also know about how to become profitable in intraday trading.
Mistake-1. Intraday Trader Think Share Market Is Gambling: It often happens that when newcomers come to the market, they consider the stock market as gambling, that if money is invested in any stock, goodwill makes money, and if luck is bad then the loss will occur. He does not try to learn the stock market at all, how the stock market works and how we can analyze it and trade in it.
Solution-1. If you want to succeed in the stock market then you have to understand that the stock market is not gambling. The stock market is a concept and a business. Which you have to learn and have to give at this time, only then you can succeed in the stock market.
Mistake-2. Lake Of Confidence: When the intraday trader earns a lot of money by trading intraday in the stock market, then he gets such confidence that he feels that he can easily earn money from the stock market and this is where he gets fooled. Earlier he used to focus on learning, analyzing intraday trading, but now he thinks the stock market goes on thinking the same. He starts trading without analysis at any time and then the stock market laughs at him and he makes a huge loss.
Solution-2. If you have been in the stock market for a while and you have started making a lot of profit, then keep in mind that the stock market is supreme, it can eat your months of hard work in a day. That is why do not make the mistake of understanding the stock market and do not trade in stock until you see the entry and exit according to your analysis and yes, before taking entry in any stock, do also check that if your If there is a loss, then how much will be the loss and also make sure that this loss should not be more than 3% of your portfolio only then trade in it.
Mistake-3. Never Focus On Learn Technical Analysis: I always focus on intraday trading how much money they earn from intraday trading but they never see how I can learn to do technical analysis in the stock market. They never focus on learning.
Solution-3. If you are new to the stock market, then you should always focus on learning how to do intraday trading, how to do technical analysis, then you should focus on technical analysis and not on how much money you earn from intraday trading.
Why Swing Trader Loss Money In Share Market And How To Be Profitable In An Swing Trading?
Traders who do swing trading are a bit wiser than an intraday trader. They buy a stock for a few months and expect to make money from it, but such trades still make some mistakes which also causes them to lose in swing trading. The list of their mistakes is like this and we have also explained their solution below.
Mistake-1. Buy Any Stocks Without Analysis: Swing traders also trade in any stock without going and analyzing like intraday trading and as a result, they lose due to selecting the wrong stock.
Solution-1. Before taking a swing trade in a stock, make sure that it is one of the stock leader companies, a pattern is forming in the stock indicating a bullish or bearish trend, the stock has a decent volume, the stock price action Follows, etc.
Mistake-2. Stop Loss And Target Not Pre Define: When swing trading takes entry in stock, it does not predefine the stop loss and target for itself and takes entry in the stock, later if the stock starts going against it, it gives it a lot of loss.
Solution-2. Whenever you make your position for a swing trade in any stock before that make sure when you have to get out of this stock i.e. what is your stop loss and what is your target.
Why Some Investors Lose Money In Share Market And How To Be Profitable In An Investing?
An investor rarely loses money in the stock market, but this only happens to investors who are new to the stock market and do not work on their strategy. Here are some of their Mistakes which we are mentioning below.
Mistake-1. Invest In Bad Stocks Or Penny Stocks And Exit At Some Return: If the investor loses his money, the reason behind it is especially that he invests his money in a company that is not performing well or is not going to perform well in the coming time or they are in penny stocks. We invest money because it is cheaper.
Solution-1. If you want to invest in a company, then you need to keep in mind how that company is performing and how it is going to perform in the coming time. He also has to pay attention to every quarterly and annual return. If at any time in time, the revenue of the company goes down already, then it is necessary to see why the growth of this company has been low and if that reason is permanent, then it is the right decision to leave the company And not leaving the company that is still studying is the right decision.
Conclusion
In this post, we learned which people and how they lose money in the stock market and how they can make a profit, so if you liked this post, please share this post, and if you have any questions So ask us in the comments.
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