Why do people lose money in the stock market?

24 сентября, 2021 от fake Выкл

«Zries in the root»

(c) goat rods

As usual — I will not torment impatient readers. Immediately start with an answer to the question in the title.

People lose money in the stock market because they are trying to make money in the stock market

I read a lot of articles on the reason why our people loses money in the stock market — and they are full of «wonderful» ideas about how to increase human financial literacy, teach people to work with exchange instruments (including derivatives, of course), teach Their tekhanaliza and then then …

I read and amazed. Well, what’s the utopia? Everything is turned upside down. And most importantly — it is clear why such a utopia appears. These articles are written by professional «stockbags» — those who feed from speculation on the stock exchange (and more often — those who feed

Well, what else can be a journalist? If he was told in the editorial office — «write about investments» — there will be no journalist to seek Oleg Klochenka — will go and take an interview at the first oncoming scalpel.

Moreover, the exchanges themselves, chasing the notorious commissions, confuse footprints — hold a competition «Best Private Investor» — which in fact is a competition of short-term speculators with extremely highly-hot strategies.

So — neither the formation of financial, nor psychological preparation, nor the Tekhanalis will not help.

Nothing will help a person who is going to «make money in the stock market.»


Stock market is suitable for «earning» money no better than casino

And there, and there «earn» — casino mains and units of professional players (yes, there is such an exception). And the masses of the statists come to «play on the stock exchange» (well, or — to play on the roulette) and deprive your blood money. You can only remind them of popular wisdom — «I would not play, my friend, did not go without a port.»

The stock market is not suitable for making money. For sure. Absolutely right. Those «Successful speculators» who tell you the opposite — most likely they are simply on the way to dedication to their deposit. Do not be offended on them — they are not with evil you lie — just do not believe in mathematics))

But you, I hope, did we teach mathematics at school? Well, then look at the statistics — how many of the speculators lose their deposit in the first year … how many in the second one … how many still it turns out to beat the index … you still have a desire to play with chances 1 to 50 not in your favor? If you still want … well, well, good luck — she will need it)) Next, do not read better — most likely you will be bored.

Further text for those who would like his well-being depended not from good luck, but from his mind, patience and laws of the economy.

So — the stock market is not suitable for

If it is properly used — then for you the stock market will not become a casino, but simply the «store» where you sell «pieces» of enterprises. Real, huge enterprises. Working. Creating products. Earning money for shareholders.

And in this case, you will not try to make money in the stock market.

In the stock market you just bought shares.

Your enterprises will earn money. Outside the stock market.

And as soon as you realize that for you, as for the investor, the stock market is primarily a store for the sale of enterprises, then your share selection system will change. And your look at your portfolio — will also change.

Buffett advised, buying shares, always arguing from the point of view of the buyer of a whole enterprise. That is, not to estimate «Want to own a couple of shares of the company Coca-Cola,» but ask yourself «Want to own the entire company Coca-Cola.»

If you are a long-term investor, then this particular question, as we will see from further reasoning, the only important thing.