MY EBOOK! http://www.ryanoscribner.com/stock-trading Fact: Most people who invest in the stock market lose money. Why do most people lose money in the stock market? Here are 5 reasons why most people lost money in the stock market. Not everyone loses money, and it is possible to see a consistent return on investment in the stock market. If you have come across anyone who has lost money in the stock market, it is likely that they did one or many of these things. The 5 reasons people lose money in the stock market: 1. Over exposing yourself, inadequate diversification. These are the people who put all of their eggs in one basket. People invest solely in one stock, market or industry and if it goes against them they lose a lot of money. These are generally the people going all in on one investment looking to double or triple their money. Another example of this is with Enron. Many of the employees of Enron had their entire pension in Enron stock. You want a diversified portfolio of investments. 2. Investing based off stock tips, newsletters or hot stocks in the news. The main reason people do this is because they don’t want to take responsibility for their own investments. They want to be able to blame someone else when the investment goes bad. Avoid hot stock newsletters at all costs. These are likely stocks involved in a pump and dump scheme. Do your own stock market research and find a strategy that works for you. Don’t take advice from others on what you should do with your own money. 3. Holding on to a losing position, averaging down, selling too early. Most people cling to a losing position or worse average down by buying more of the stock to lower the average price paid per share. Set a stop point for the stock where you will sell it. Don’t let the stock go into a free fall while you are holding it. If the stock is falling and the company has poor fundamentals, sell it! Take the tax loss and learn from your mistakes. On the other hand, people get excited when they are up and often sell too soon leaving profits on the table. Never sell a rising stock! Wait for a sell off or a peak to form. On that note, don’t be greedy by riding a winner into a loser! There is a fine line with this one. 4. Chasing a rising stock. If a stock is way up, it is heading into uncharted territory. There may not be a support for the stock to pull back to. Ideally, you would have invested when the stock broke out of a well formed base. A running stock can be dangerous as investors may be eager to sell and take profits off the table. Generally, the steeper the uptrend is the riskier the investment is. Don’t get mad that you missed out on the opportunity, another one will come along! At the very least, wait for the stock to pull back to a support before investing. 5. Investing in penny stocks. What happens when you mix inexperienced investors with high risk investments? Bad things. Beginner stock market investors shouldn’t go anywhere near penny stocks. Unfortunately, many shady characters in the stock trading realm push these investments on beginners. Most of the companies that are traded OTC or through pink sheets are not even profitable, so there is a high risk of them going bankrupt. Since these stocks are not listed on a major exchange, they can be very difficult to sell. It is also very difficult to find credible information about a lot of these companies because many of them are not required to file with the SEC. New investors should avoid penny stocks at all costs. There you have it. These are the 5 reasons I see why most people lose money in the stock market. If you avoid doing these things, you can be a successful stock market trader and take consistent profits! #1 BOOK I RECOMMEND (Wealth): http://amzn.to/2sncXrg #2 BOOK I RECOMMEND (Mindset): http://amzn.to/2smXaIW #3 BOOK I RECOMMEND (Happiness): http://amzn.to/2smO0Mv #4 BOOK I RECOMMEND (Investing): http://amzn.to/2rsXWny Website! http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Facebook! https://www.facebook.com/ryanoscribner/ Snapchat! ryanoscribner My Equipment... CAMERA: http://amzn.to/2smXFCO TRIPOD: http://amzn.to/2qOSKZ5 SD CARD: http://amzn.to/2rttI3K LIGHTING: http://amzn.to/2qON0Pl ACOUSTIC PANELS: http://amzn.to/2s2ywjr My Board... WHITEBOARD: http://amzn.to/2qOVRR1 MARKERS: http://amzn.to/2qPetjA ERASER: http://amzn.to/2rkduLU CLEANER: http://amzn.to/2qOXPAT STOOL: http://amzn.to/2rA2omJ DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

• published: 22 Feb 2017
• views: 4609