Last Updated: Saturday, January 16, 2016

Why Retail Investors Lose his Money in Share Market?

Stock Image:Why_Retail_Investors_Lose_Money_Share Market_how_to_become_richOften We hear of our friends claiming of making good money in the stock market with little money or almost no money at all! Most of the people google on "How to make money in  Stock market" with little money to spare or no money at all? But let me tell you the fact that the person claims to have earned good money in stock market just reveal half the truth! Why? There is common psychology of traders to conceal their mistakes that they make in the stock market of losing money. Let me further drive some common mistake a retail investor make in stock market and lose lots of / most of his capital injected in the market. This article will help you to understand "Why retail Investors lose his money in Share market?"
Keywords: Retail Investors, Lose Money, Share Market, Day Trader

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Why Retail Investor lose Money in Share Market ?

  • Most of the retail investors enter into the Bull Run.
  • Chasing a single stock is also one of the reason why retail Investors lose his money in share market.
  • Many of retail Investors never put the Stop Loss in the System.  
  • They are always in hurry to exit from the stock which are in Bull Run, with minimum profit.  
  • Don't have a Habit of trading by Robotics mechanism.
  • By doing the emotional Trading, Holding the positions in Loss and cutting down the positions early in profit.
  • Lack of home work before entering in a stock.
  • Lack of resources about the movements and news which affects the Stock market.  
  • Too much greed from a single Stock and lack of profit booking technique.
  • Day dreaming in stock market also makes him suffer huge losses.
  • Never traded with the trend of the market. Fear in going shorts in stock.
  • Was not able to stay away from the market when it is sideways.
  • Didn't invested money in sectors which are outperforming the Index.
  • Retail Investors trade on rumors and news.

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  1. It is really great to start learning about this stuff before trying to get into the battle. I tried forex trading thinking that it was a good strat for me to earn money. Without any background I started investing with 500USD deposit. I run into a guessing game. I lost it all. For now, I think I would still have to settle for the retail business or even online marketing to really learn the business game.

    1. Thanks Joseph to share ur experience here, this will certainly help newbies in stock market.

  2. share market is very risky market to invest. without a good knowledge of share market you anybody should not invest.thanks for sharing this post.

  3. it is true that there is risk in investing stock market but one of the main reason is not having enough knowledge about how stock functions and retail investors invest their money in funds on the basis of last year performance which is bad practice.

  4. That is really excellent! learned about this stuff before trying to get into the battle. I did try trading thinking, it was a good beginning for me to earn money.

  5. Great Post!! Thanks for sharing information.