SHARETIPSINFO >> Articles Directory >> Why beginners fail in stock market – A must know by Sharetipsinfo.com
The recent craze that has set in the present day and has taken the world by a storm is finance and more precisely the investment world. Today anybody and everybody who has savings are more willing to make investments and earn profit there from rather than opening a fixed deposit account or savings account. This is mainly because the returns that investors get on their investments are comparatively more than the interest received from opening the above mentioned accounts. But, have you ever wondered about the reasons that have led people to make such decisions. Have you ever wondered why the stock market when there were so many other options. Probably no and even if you have you must have never got the answer you wanted to know. This is because you will hardly find a person today who knows the exact reason for making investments in the stock market. No one cares to find out the reasons too. This is because everyone is concerned with earning profits and as such no one cares and no one has the time to analyze the reasons leading them to make investments. Unfortunately, these reasons happen to be the primary causes of the people incurring losses in the stock market, especially the beginners. But have you ever wondered or cared to find the reasons why beginners fail in stock market.
Most of the investors who fail incur losses are generally beginners or first timers:
It can be seen that most of the investors who fail or in other words incur losses are generally beginners or first timers. They only set their eyes on the brighter side of things in the stock market and as such tend to overlook or rather refuses to look at the darker side of the share market. They just notice the profit aspect and not the risks that are attached to the stock market. They believe making investments in the stock market is a child’s play and as such without even thinking twice take the big plunge into the stock market. As a result, they end up losing all the money that they have invested.
It requires experience
Making investments in the stock market is not as easy as it seems like. It requires years of experience as well as a good knowledge of the stock market. No one can earn success in the stock market in a single day. However, the investors today are more interested in earning profits than gathering knowledge. As such, the consequences of such mentalities can be seen in the losses incurred by them. It is said that it is no use crying over spilt milk. As such, if you want to earn profits, gather knowledge and experience and only then invest in the online stock market.
If you ask a hundred people, you will get a hundred different answers:
If you ask people or the investors, they will all give you their own version of the story. Thus, if you ask a hundred people you will get a hundred different answers. However, you will find none of the answer satisfactory because none of the answers that were given by the investors provided you the information that you actually wanted to know. However, this does not mean that all the hundred people were lying. They too are correct in their own rights. As such, the answers that they have given you are not entirely wrong. The answers that the investors gave you were the reasons, which motivated them to make investments, but not the actual reasons in itself. Every investor had different factors that motivated or influenced him or her to make the investments; some were influenced by their friends or relatives, while some others were influenced by their success. There are some others too who are motivated generally due to the profit aspect of a stock market. Again, there are some people who make investments with a view to mobilize their savings only. As such, all the hundred investors have hundred reasons for making investments. So, now you know the reasons why beginners fail in stock market.
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