Why Most Investors Lose Money – and You Don’t Have To

Every so often an article comes out saying that most private investors lose money in the stock market. And it is true.

But you don’t need to join that group; don’t be a loser.

There are many reasons why folks lose money in the stock market.

I am not going to list them all today and how you can avoid them. I am going to highlight two keys to avoiding losses and making money.

1. Don’t wait months and more months to invest. You see the market is climbing and you want to be “sure” it is on the upswing, so you hold off buying, probably for many months, maybe even a year. By the time the ‘loser’ investor gets back into the markets, the major climb is already over. That’s right, it is already over!

Using an Equity Curve in your investment software will tell you when to get into the markets. (It also tells you when to get out.)

2. If your stock is going down, past your stop point, or the Equity Curve signals “get out now” then holding onto your ‘favorite’ stock has become an ‘emotional’ decision and not one based on investing for profit.

Take a look at this Equity Curve – what does it say to you?

Market Equity Curve 1-22-16

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