Stock Market

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Why people lose money in stock market?

In a 100m dash in which ten people participate, only three manage to bag the medals. Mathematically, only 30% of the participants manage to win. Now what do the top three people have that others don’t? Speed, stamina, better physique and of course better practice. Stock markets pose a similar situation. At the end of the trading season, only a few people (worse than the race example, only about 10%) manage to make a profit while others lose money. In fact, for one trader to be lucrative, some other trader should lose money. Because of the ‘commission’ factor, winner-loser proportion can never be balanced. How can one ‘win’ in stock markets? Through proper study, objective trade decisions and experience. 

Be it intraday trading or long term investments, share market is no place for blind gambling by beginners. Before one invests large sums, one should be well versed with market trend, one should know A to Z about the new entries and should be able to sense the market mood. For these, rookies can initially trade with fake money via virtual trade websites or can seek the help of paid service providers or simply follow the path which majority of new comers tread, invest in mutual funds.