Mika
VIP Contributor
If you have invested in American companies, you might have lost a substantial amount of money because in the last 2 days the US stock market has gone down. Do you know why you lost money, or let’s say why people lose money in the stock market? Here are some possible reasons.
You buy stocks when the prices are high: Generally speaking, people start taking interest in the stocks only when the price starts going up and by the time they put their money in the market, the price is already too high.
You don’t know your risk tolerance level: A risk tolerance level means your ability to handle risks, mainly financial risks. When you don’t know how much risk you can actually take, you will start to panic sell and you lose money.
You buy assets that don’t match your risk tolerance level: You don’t have risk management skills, yet you buy assets that are high risk.
You buy stocks when the prices are high: Generally speaking, people start taking interest in the stocks only when the price starts going up and by the time they put their money in the market, the price is already too high.
You don’t know your risk tolerance level: A risk tolerance level means your ability to handle risks, mainly financial risks. When you don’t know how much risk you can actually take, you will start to panic sell and you lose money.
You buy assets that don’t match your risk tolerance level: You don’t have risk management skills, yet you buy assets that are high risk.