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Why Retail Investor Lose Money in Equity / Commodity Markets?

Trading in equity or commodity markets is never an easy task to do, but follow are some basic reasons why retail traders or investors lose money in markets:

  1. He is among the last few people to enter into the Bull Run.
  2. He keeps on changing a single stock.
  3. Never put the Stop Loss in the System.
  4. Always the first one to exit from the stock which are in Bull Run, with minimum profit.
  5. Don’t have a Habit of Trading by Robotics Mechanism.
  6. By doing Emotional Trading, Holding the positions in Loss and cutting down the positions early in profit.
  7. Lack of home work before entering in a stock.
  8. Lack of resources about the movements and news which effects the stock market.
  9. Too much greed from a single stock.
  10. Day dreaming in stock market also makes him suffer huge losses.
  11. Never traded with the trend of the markets.
  12. Fear in going shorts in stock.
  13. Was not able to stay away from the market when it is sideways.
  14. Didn’t invested money in sectors which are outperforming the index.
  15. Listening to rumours and investing money there.