Why Most Investors Lose Money

I have been sharing about investing for many years, and reading through many investing forums.

And I know that there are investors who are not profitable in the stock market.

The most common question that I got when I share about investing is this, "Gin, can you recommend me some stocks to buy?"

I never supported the idea of giving people the fish - because they are likely to lose money.

Why?

Investing is a long term game - and people who are looking for people to give them the "fish", are usually people who have a short-term thinking.

Short-term thinkers will never win in the stock market.

Only when people understand the concept of investing - then I don't mind sharing what are some of the stocks that I am looking at.

That's the first reason why most investors lose money - they are always looking for quick wins.

What do these people then do - they try to look for gurus to copy.

Mistakes Of Relying On Gurus

Most people are relying on stock recommendations of someone's else, or blindly following the "guru".

Who could blame them, especially if they have just started investing and not sure what to look out for right?

Now, these stock recommendations are not neccessary bad.

But when you follow these stock recommendation, ask yourself this question - if the share price were to fall by 50%, will you be willing to buy more?

Chances are that you won't.

Why?

Because you were not the one who did the research on the company.

You were not the one who evaluated whether the company will do well in the long run.

Simply put, you have no conviction.

That is why most investors lose money - they blindly follow others.

• And when the share price fall by a mere 10% - they chickened out and sell their stocks at a loss.
• Or they hold on to the shares, hoping for a rebound - only to find their shares are going into bloodier red.
• Or as the shares rebound, they sold them at breakeven price - and made zero profits, only to find the stock skyrocket after that.

When we blindly follow others. we do not know their definite game plan.

Would they sell or hold?

Or would they buy more shares as the stock price falls.

This is why it is so dangerous to simply blindly copy someone else.

Because you will never become an independent investor this way.

I know that, because I got my fair share of lossess, blindly following stock tips.

And I don't want my readers to end up the same way.

This is why I spent months in building the stock investing hub - so that there is an open resource to help guide beginner investors invest profitably in the stock market, so that they never have to rely on someone else, but instead, able to fish for themselves in the stock market.