How Do People Lose Money on the Stock Market?

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There are many ways to lose money on the stock market, such as the market going down and careless trading. Be aware of trading costs when using the stock market with help from a portfolio manager in this free video on personal finance and money management.

Part of the Video Series: Stocks & Bonds
Promoted By Zergnet


Video Transcript

Okay, so how can you lose money in the stock market? Well, there are a multitude of ways you can lose money on the stock market. You could buy shares, invest money into the market, and the market could go down. Now again, you're only going to lose that money if you decide to take your money out at that point. If you leave your money in it's lost value, but it also may come back. So, if the shares that you've purchased are inherently good, they're well managed businesses, this just might be a downturn in the market. This might be something that people on Wall Street are manipulating at the time in trading. You just weather the downturn. If you know that the stock will come back then you just hold it, and you won't lose any money because when you eventually do take shares out or take some of the money out you will have more than you started with. The other ways to lose money in the stock market are to do, you know, careless trading. If you trade during the day, intra-day trading for example, you may actually make less money than you're than you're costing in fees, so always be aware of what your trading costs are. Always be aware of what any fees might be that you're incurring while you're doing your trades so you don't outrun your your profits.


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