Why most of the people loses their money in stock market ?
For more than a decade, most investors have been losing their money in stock market. It’s easy to learn about the issue and help it happen in 2 words
After a couple of years of bad performance in stock market, thousands of people have lost around 50% of their money. People who buy and hold stock have suffered heavy losses when comparing values of their stocks with actual returns over the past 5 years. However, this has shown a huge improvement over the last couple of years. So, many people still have no idea why all the stock market movements are happening.
In a simple example, investing in stocks is similar to using betting money. Yes, one player’s money is equal to another’s and each player keeps track of their own books. However, in the real world, you will never know whether or not there is another player betting for you or not. Think about your 401k funds. Did you see the huge decrease in it? Or was it up a lot or down? You would be wrong, right? Neither of those were there betting transactions, right? You would have lost almost 3.5% of your investing dollars when you bet on markets.
You probably won’t catch anything in stock market betting, especially if you are an inactive player. Many people only trade a few times a year, so they trade very small amounts. Many more players also buy and hold short term investments with small daily swings, so they are short term. There are extremely bad companies in stock market betting, which would continuously benefit that operator. Even professional trader’s big contracts and betts have unexpected moves. Many of them are illegal contracts.
In other words, most of the bets are fake bets and not responsible transactions. The point here is, these bets and bets not only gave away their own money, but also their safety, due to them, regular safety functions are not being followed. As we mentioned, betting also takes place under many different purposes. Most of the traders will never go through the “good money” and they’ll always go through the bad money. Although, they do take care of their side due to they are charged a hefty amount in bitcoin.
Based on studying stock market, so far, about 90% of the losses on individual players’ part are related to unethical, illegal activities. Whenever a person bought a stock, most of the brokers put up a fictitious quotation. Most of them will put up a bubble (false quotation) and it normally makes those people lose more money on their stock than the underlying assets (equity). Any the main reason people lose is because people are always changing wrong rules and doing something wrong and that shows a huge increase of stock market losses in the long run.
The point of the question is two-fold. First, why many people have lost so much money from the stock market, and why most of the people have no idea why all the stock market losses are happening. It will be absolutely wrong to say that all the stock market players is speculating and there are no responsible trading or gambling activity. However, we have to admit that when most of the stock market players had no knowledge of how in the slightest it would happen, they gained very little money.
