How to lose money in stock markets?

failure secrets

Only 20% of investors make money in stock markets while 80% of investors continue to lose money. What are the secrets of these loss making investors? Even mutual funds lost heavily in the 2008 stock market melt down and many investors had bad experiences due to overhyped Reliance Power IPO.


Many investors are experts in losing money in stock markets. They never buy when BSE Sensex is trading at 13,000 but they invest aggressively when Sensex is at 21,000. They will never learn the art of investing and accumulation. They overestimate crisis and put money when markets are overvalued. These investors never learn from their mistakes.

15 simple tips to lose money in stock markets:

1.       Minimize profits and maximize losses.

2.       Buy when all are buying and sell when all are selling.

3.       Speculate in markets but never invest.

4.       Invest in penny stocks to quickly become bankrupt.

5.       Never research before investing in a stock. Always believe in brokers and tips.

6.       Never try to know more about company and its fundamentals.

7.       Invest in companies which are posting bad results.

8.       Invest in sectors which are in downturn.

9.       Always become sentimental with your stocks. Never exit them.

10.   Always day trade but never invest for long term.

11.   Never book profits in any stock even after reaching your target price.

12.   Never set stop loss for your trades.

13.   Always invest in overvalued stocks. Never try to know about P/E and PEG ratios.

14.   Never try to learn from your mistakes and try to repeat them.

15.   Never read books and articles on stock markets to gain more knowledge.

Advice: See the company fundamentals, value and growth prospects before investing in that stock.

Visit Indian Stock Market Guide to get more knowledge and investment ideas.

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Venkata Krishna Nalamothu
Venkata Krishna Nalamothu
Doctor, Professional Blogger, Stock Market analyst at Nalamothu Capital
Ongole, Andhra Pradesh, India
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