People lose money in the stock market for various reasons, often due to a combination of market volatility, poor decision-making, or lack of knowledge. Here are some common reasons why people lose money in stocks:
Lack of Research and Knowledge Insufficient Understanding: Some investors jump into the market without understanding how stocks work, what drives their prices, or the fundamentals of the companies they invest in. Following Trends Blindly: Investing based on market hype, trends, or tips from others without doing personal research can lead to poor investment choices.
Emotional Investing Fear and Panic Selling: When stock prices drop, many investors panic and sell their holdings at a loss, rather than waiting for potential recovery. Fear-driven selling is a common reason for losses. Greed and Overconfidence: On the flip side, when stocks are rising, investors may get greedy, ignoring signs of overvaluation or risk, and hold onto stocks too long, resulting in losses when the market corrects.
Market Timing Trying to Time the Market: Attempting to buy at the lowest point and sell at the highest is incredibly difficult, even for professionals. Many investors lose money by trying to time the market and failing to execute trades at the right moments. Missing Key Opportunities: Investors who wait for the "perfect time" may miss opportunities or buy at higher prices when they re-enter the market.
Lack of Diversification Concentration in a Few Stocks: Investing heavily in one or a few stocks increases the risk of significant losses if those stocks underperform. Sector Overexposure: Being too focused on a particular industry (like tech or energy) can expose investors to sector-specific downturns. A well-diversified portfolio can help mitigate losses.
Ignoring Fundamentals Not Evaluating Company Value: Many investors overlook fundamental analysis (reviewing a company’s financial health, earnings, and long-term prospects) and make decisions based solely on stock price movements or market sentiment. Investing in Overhyped Companies: Stocks that are heavily promoted or hyped can attract investors, but if the company’s fundamentals don’t support the high valuation, the stock may eventually drop, leading to losses.
FOMO (Fear of Missing Out) Chasing Hot Stocks: Many investors jump into stocks after seeing rapid price increases, fearing they will miss out on future gains. Often, these investors buy at inflated prices, only to see the stock decline soon after.
It is a lousy company but the promoter getting paid to promote the company, until today transgrid haven secure any project from TNB, very terrible and poor management team.
The Implication, Amplification, Ramification & And Identifying Opportunities in Applications to Trump New 4 Year Term (2025 to 2029) as USA President, Calvin Tan
Same as for JCY, Dufu and Notion, Big Cannon portrayed that all these three are equalvenant to Western Digital or Seagate. Also he portrayed that Hextar Capital is sole contractor for all fibre optics installation at data centers. It actually came up that the company has diversified to building construction; lately it secured a contract of RM91 million in Kelantan.
I hope you do know in Msia there's hundreds or even thousand of companies like Transgrid tendering for the RM90 billion job. And I believe you also know that there's a familiar culture in Msia to award jobs to bumiputera companies and all it's related 'family', 'extended family', 'friends' and even 'extended friends'. Go figure.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
innocent9331
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Posted by innocent9331 > 1 month ago | Report Abuse
Once upon everyone call Calvintaneng sifu, where is the sifu ?