1 Answers: How do investors lose money?

  • Invest in companies with huge debt.
  • Invest in companies which are on the verge of bankruptcy.
  • Invest in penny stocks.
  • Invest in companies which are consistently showing losses.
  • Invest in companies whose business model is no longer relevant to consumers.
  • Do not diversify invest in 1–2 stocks only.
  • Invest at the end of the bull market.
  • Invest during the start of a recession.
  • Invest in countries with poor governances.
  • Invest in cryptocurrencies.

How do you lose money investing?

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Jessica G 7 months 1 Answer 79 views 0

Answer ( 1 )

  1. Ways to loose money?……..heck , yesterday I lost about $15K …….yet I am up for the week, today……so what did I do to lose money yesterday?……….go long nasdaq futures with no stops using an untested system.
    Another way is to buy options……..85% of all options expire worthless.
    Yet another way to lose…… is to buy when price has been going up up up……
    The most effective way is to buy a system or take a trading course from someone without seeing their profitable track record first. (Most instructors do not have a profitable track record……but they have great excuses for not showing it to you).
    Sooo after you spend a good chunk of change getting a good system from someone that is tested and you have seen the profitable track record. ………you modify the system and trade it ………without back testing it first.
    Several years ago I wrote an article, that was published in a trading magazine which had no losing trades for over 80 years on back tests in the S&P500. If you can find it …..its yours.

    The prize for the ultra best idea is go invest in an LSD investment idea……..one so nuts…..you need to be on LSD to invest…..especially if the guy selling the idea is totally convinced that it will work out.

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