Why 90% of People Lose Money in the Stock Market: Psychological Traps You Don’t Know You’re Falling Into
Introduction: Ever wondered why so many people lose money in the stock market —even in a booming economy? It's not always bad luck or poor stock choices. More often than not, the real culprit is our own mind. In fact, over 90% of retail investors lose money due to hidden psychological traps that control their decisions without them even realizing it. Let’s explore the most common investing mistakes people make and how you can avoid falling into these traps—even if you’re just starting out. 1. THE FEAR OF MISSING OUT (FOMO): The Fast Lane to Losses Imagine this: Your friend says he made 3x returns on a “ hot ” stock. Suddenly, you feel like you’re missing out and rush to buy the same stock—often when it’s already too late. 📉 The Trap : FOMO leads people to buy high and sell low. When a stock is trending, the price usually reflects peak hype, not value. 💡 Pro Tip: Create a watchlist, set price alerts, and never invest emotionally. If you wouldn’t buy it without t...