Every advisor wants to convince you that there are losses in the stock market. And they say this thing with confidence when you want to be involved in trading, or when you try to earn more money by risking your capital. But if we think with a cool mind, then we will know. we will put our capital in a business, and also our precious time. Even after that, if we lose, then how far this is the right thing. Here the question is not whether the loss is normal or not. There is a bigger question than that: How much loss can be called normal ? And the loss which we called normal here, is it a net loss from our capital investment? Or is this a part of the loss from our total profit earned?
After all, we have made a profit in the last, and for that, I had to face some loss, so it is okay. But if we have done the losses at last, and we are giving the name of it to the normal loss, it is not right. Let us understand this from all the scenarios of the stock market. Also, know how much loss is there with each segment.
When it comes to trading, the company behind the stock and its fundamentals are not taken into account. Maximum attention is given to the movement of the share price. And everyone knows that the prediction of price movement cannot be 100% accurate. And this is where the journey of losses begins. And where there is no 100% accuracy of price prediction, there are chances of loss in the trade. Money Management has more importance in trading than price prediction.
When it comes to stock trading, we tend to think about intraday. Where we trade by looking at the price. But this is not the case in swing trading. Due to maximum trader participation in the market right now, all the trading strategies will work well. But the market is not always like this. That is why some fundamental parameters have to be taken care of before entering swing trading in stocks. Like stock financials, Sector Performances, quarterly results. Do you see all these things? If you don’t see this then start watching all this. Then losses in the stock market will be common for you too.
If you search on the internet for any other question, then you will get the result 95 percent. But it has been said about the stock market trader. Investment means more than 3 years and longer. And according to me, whoever makes a portfolio in the stock market, for a long time. And keeps investing more and more years. Even in normal shares. So he earns more than the fixed interest. It is very difficult to lose money in investment. If you withdraw the investment in a short time. So first you are not an investor. So we cannot call this investment loss.
Sometimes we buy such stocks, which the company sinks in a few years. It drowns our capital completely. Yes, we can say this as an investment loss. But how many companies do you know that drowned in front of you? Few. Right? There is a reason behind this too. In the pursuit of earning a maximum profit, it has to suffer a lot of loss due to taking a maximum risk in the company. According to me, if you bring time with you before entering the market, and do not put money in the wrong company in the pursuit of earning money quickly. Your money will definitely be made in the stock market. Forget it, the question is, Is it normal to lose money in the stock market?
Caution :- Trading, or swing trading, share prices do not move according to you. So you will lose some money in both places. But we are here to tell you overall, if you are in the market with proper learning, then it is our belief that you will stay in profit.
No matter how good the financials are in these investments, no matter how good the management is. No one’s boss ever went over the situation. With the situation getting worse, the company gets sunk somewhere. When you invest with proper portfolio allocation and with diversification. Even after 3 out of 10 of your companies sink, you will not lose.
Whatever has been mentioned above, we are doing analysis keeping an eye on stock trading. kindly do not use all these facts in Futures and Options. Especially whatever has been said about investments.