No, I know! But you see so many people buy something that's tanking, thinking they're getting a bargain, without knowing a thing about the fundamentals. They just assume it can only go up from here.
Human nature is not your friend!
Why do people lose money in the stock market?
- Thread starter Elliot
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No, I know! But you see so many people buy something that's tanking, thinking they're getting a bargain, without knowing a thing about the fundamentals. They just assume it can only go up from here.
Human nature is not your friend!
tech/a
No Ordinary Duck
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Because you're the feller at the other end of the trade?
I heard my uncle proudly talking about his strategy of selling half his shares if they go into profit, because, I guess, risking 100% of your money but only letting 50% of it ride the good trades is a great idea.
tech/a
No Ordinary Duck
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I don't trade fundamentals
I trade crowd behavior.
I trade crowd behavior.
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Not educating and not fully understanding the risk.
Not many realise it takes ... give or take 10 years to understand and overcome.
Not many realise it takes ... give or take 10 years to understand and overcome.
My Father bought Telstra shares in 1999 when he worked there, I asked him why and he said "dotcom". I asked him what that meant and he said no idea. Then Flinders mining at 12 cents, went up to 30 cents and some stupid woman ruined the deal (it became to publicized) and they're now around 2 cents (he's still holding accepting they're worthless).
I would've imagined losing on the stock-market would be more common than not losing? Most these planned publicized deals appear to flip overnight after predicting a boom... insiders/minority robbing the mass shareholders?? Every time they market the flock towards a highly publicized deal, or a boom, the opposite happens!!!
I would've imagined losing on the stock-market would be more common than not losing? Most these planned publicized deals appear to flip overnight after predicting a boom... insiders/minority robbing the mass shareholders?? Every time they market the flock towards a highly publicized deal, or a boom, the opposite happens!!!
Its interesting to see that no one has mentioned that it is just as hard to lose money (before commissions) as it is to make money. When backtesting a strategy if it failed spectacularly we could just reverse the long for short signals or vice versa. Most non buy and hold trading strategies you backtest over the long term will come out neutral (after commissions), they often rely heavily on market conditions. If there was a way of quantifying why people lose on the market then you could use that as a guide for success.
tech/a
No Ordinary Duck
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Sounds fair enough in theory.
But in practice simply reversing a losing method won't guarantee a profitable method.
It not like slamming a car in reverse.
I'd arue it's far easier to lose money.
I disagree that most trading methods tested over the long term return a neutral result.
If they do then you need to understand system design.
There is certainly ways of quantifying why people lose regularly in the markets.
And yes we can and do use it!
can you explain this?
I considered this before I wrote it but most = >50% (a bit vague I know) but I would put it at substantially higher than that, and I also wrote "non buy and hold trading strategies" attempting to take out the long term directional bias of the market.
TOTALLY agree!
tech/a
No Ordinary Duck
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Sorry just seen this.
Lets take a moving Average x over. The main reason these fail (M/A Systems as an example) aren't the syntax (formula) and the variables but that they get whipsawed. Reversing the exit to a short entry wont give you a profit. That's not what's causing the loss in the first place.
I would argue that with out a knowledge of how to skew a formula toward profit you would have a much higher rate.
But once you know how to skew it you will get a much lower rate.
Infact the challenge becomes developing a method which returns greater than the market---and when you get really good at it---returning over 20%
From my experience
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Here is something, my thoughts anyway "we can ask the question why do ppl lose money in the stock market.
The real question is "how can "I start to make money in the stock market.
... Does your trading show profit or loss ? There are many that show profit but are still not happy. I've heard of a trader making 10 million a year that still wasn't happy, he said he wanted more like the big boys. (he did eventually after counsel (this is another story)
So if your not ... what are you going to do about it?
(I'm trying to be thought provoking here not putting anyone down that isn't profitable)
The message here is anyone not making money needs to learn from someone that is making money. Doing it alone can be done, but it can take several years longer.
Basically if you don't change anything now don't expect anything to change in the future.
Tough love but success stories do exist in "making money in the stock market
The real question is "how can "I start to make money in the stock market.
... Does your trading show profit or loss ? There are many that show profit but are still not happy. I've heard of a trader making 10 million a year that still wasn't happy, he said he wanted more like the big boys. (he did eventually after counsel (this is another story)
So if your not ... what are you going to do about it?
(I'm trying to be thought provoking here not putting anyone down that isn't profitable)
The message here is anyone not making money needs to learn from someone that is making money. Doing it alone can be done, but it can take several years longer.
Basically if you don't change anything now don't expect anything to change in the future.
Tough love but success stories do exist in "making money in the stock market
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You must make your view of this Aussie in and out of Australia. Some would say, "What a marvellous Export" and others "Australia please keep him there".
en.wikipedia.org
twitter.com
-
Warning to read these links with your commonsense hat on.
David Lenigas - Wikipedia
x.com
twitter.com
Warning to read these links with your commonsense hat on.
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A name I should rememberYou must make your view of this Aussie in and out of Australia. Some would say, "What a marvellous Export" and others "Australia please keep him there".
David Lenigas - Wikipedia
-x.com
Warning to read these links with your commonsense hat on.
Me too, don't think I will forget this unique surname.
I like what you posted. Too right in my opinion.
100% spot on.
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You must make your view of this Aussie in and out of Australia. Some would say, "What a marvellous Export" and others "Australia please keep him there".
David Lenigas - Wikipedia
-x.com
Warning to read these links with your commonsense hat on.
Couple of points
1) The Wiki story on David Lenigras was a very bracing comment of how , I believe , too many Company promoters operate. Seems to me someone with a very sharp ax to grind write that wiki
2) Please check out Davids Twitter link. Absolute must. This not for the various self promotions. Just check out the post titled "when it';s not your time to die" 40 sec. Jaw dropping clip of a guy who pulls a miracle to stay alive.
Do you want to play with penny dreadfuls and boosters ? Davids your guy.
CITY FOCUS: Lenigas - is there money where his mouth is?
This week the company behind the announcement, UK Oil & Gas Investments, toned down its claims of a potential gusher, to rein in what one exasperated observer called its ‘wild’ assertions.
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Sean K
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Because they buy stocks associated with the renewable energy agenda. Everyone is losing by backing "Global Boiling", except the far left activists. Everyone else loses.
Buy oil and gas.
Buy oil and gas.
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Comments under the article.Couple of points
1) The Wiki story on David Lenigras was a very bracing comment of how , I believe , too many Company promoters operate. Seems to me someone with a very sharp ax to grind write that wiki
2) Please check out Davids Twitter link. Absolute must. This not for the vatious self promotions. Just check out the post titled "when it';s not your time to die" 40 sec. Jaw dropping clip of a guy who pulls a miracle to stay alive.
Do you want to play with penny dreadfuls and boosters ? Davids your guy.
CITY FOCUS: Lenigas - is there money where his mouth is?
This week the company behind the announcement, UK Oil & Gas Investments, toned down its claims of a potential gusher, to rein in what one exasperated observer called its ‘wild’ assertions.www.thisismoney.co.uk
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