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TitleWhy do people lose money in stocks?2025-08-30 14:36
CategoryLearning Stocks
Name Level 10


There are many people who make money from stocks, and there are also many who make a living by trading stocks full-time.

Nevertheless, the reason people are afraid of stock investing is

This is because there are many rumors circulating about people losing money in stocks or squandering their entire fortunes through stocks.


It is true that rumors are often exaggerated and become bigger than reality in order to spread more widely and be entertaining.


Of course, you shouldn't recklessly invest your entire fortune in stocks without properly learning about them.


Every game has rules.

Before entering the game, you must first understand the nature of the game and its rules.

And, if I can meet someone who is good at games,  

It is a very good idea to find out through that person how to play the game faster and more enjoyably.


There are four cases where you lose money in stocks.

-     1.  Wrong selection of company stocks.  

-     2.  Buy stocks at a high price.

-     3.  Unable to wait, selling at a low price.

-     4.  global or national economic crisis, calamity (예IMF, Covid, Lehman Brothers, China Evergrande Group crisis, earthquake, volcano, terrorism, etc.)


With the advancement of artificial intelligence (AI), anyone can easily access and listen to explanations of a company's financial indicators, such as financial statements and accounting analyses, from the comfort of their homes within seconds. In this five-session stock course for beginners, you will learn how to select company stocks and how to analyze financial statements and financial soundness. You will also learn how to decide when and at what price to buy and sell stocks.

Therefore, among the four ways to lose money in stocks, items 1, 2, and 3 can be understood through education and overcome through experience.

Furthermore, regarding the overall decline in stock values of almost all companies caused by natural disasters or international political issues rather than one's own capabilities, there is the option of quickly selling the stocks to cash out, or simply holding onto them even if the value drops; eventually, the stocks will recover to their original prices over time. Even the global deadly disease known as Covid was overcome within three years, and most companies have recovered and are continuing their growth trajectory.


Even before COVID-19, companies such as Apple, Samsung, Microsoft, and Tesla existed, and their companies still exist today, with the value of their stocks increasing even further.


As time passes and years go by, the value of money decreases. Compared to last year, the quantity and items that could be purchased with 1 cent, 10 won, or 100 won are disappearing.

However, the value of stocks rises year after year. This is because companies are profit-making entities that pursue higher profits through their business.

As a group striving to sell better products to consumers, the company grows over time, and the value of the stock increases.


That is the case with Samsung stock, Microsoft stock, Apple stock, Tesla, and Nvidia stock. 


The price of the stock rises even if you just buy it and hold it.


Stocks are easy. You just have to buy when the price is low and sell when the price is high, 

Most people start investing in stocks on their own, and since it is possible to make a profit even when starting alone,

Even if they make a profit 7 out of 10 investments and fail 3 times, they do not realize that they are on the wrong path.



However, if you learn properly and start, you can naturally generate stable profits.


Inquiries for the 5-session stock course for beginners: gkorean25@gmail.com 








 


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