Why People Lose Money in the Stock Market: 3 Biggest Reasons

What are the most common reasons why many investors end up losing money in the stock market? More importantly, what can we do to prevent this from happening?

Here are three of the biggest reasons why people lose money in the stock market:

# 1:. Wrong to equate price with value
Stock prices is what you platili.Vrijednost is what you get behind the business. G. market can vary the current share price. It does not change the intrinsic value of the business of creating free cash for its shareholders and consistent profitability in the future. You can increase your chances of losing money in the stock market when you do not take the time to assess if the job is the best breed in the industry or sector.

This means that you should spend a little time:

1. checking out the most important growth rates to assess the profitability,
   
2. checking if the job has an economic advantage over competitors,
   
3. to ensure that the management team is working for the shareholders, not by ripping off,
   
4. determination of the internal or the fair market value of the business, and
   
5. buy business with a margin of safety to buy when it comes to sales.

If you like step-by-step approach to assess whether the job is the best breed or not, visit Stock Investing simplified.

# 2:. Letting emotions get the better of you Instead of using a rational approach and sound reasoning to guide your decision making process, May you get caught in the hype surrounding the market. You end up buying shares when the value and selling pre-maturely, when the media calling the end of the world.

panic and greed can set in, blurring a verdict in making sound investment decisions.

Avoid getting influenced by the masses in search of any significant changes in company fundamentals, emerging competition and market trends. If everything is checked, then in all likelihood it is better to be patient and wait.

This brings us to the third The most common reason why people lose money in the market.

# 3:. Lack of patience Very often we see investors moving in and out of the market is not allowing enough time for Mr. Market share price at its intrinsic value or fair market price.

May you find that you are easily influenced by media and stock investment industry hype and moving from position trading, always looking for a quick buck, but be patient.

This fact, more often than not, the scenario where you end up selling when you should be buying. As a general rule of thumb you would be better served if you sold what works best and what to buy for the worst hyped in the market.

heed this advice, whether you're talking about stocks, bonds, real estate or commodities. If you have done your due diligence and verify that you are dealing with a best of breed in its class, and then using a contrarian approach to what a panic the masses work can present some profitable opportunities.

In short, investment decisions based on sound selection of best of breed companies use rational and patient access to greater profitability.

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Nigerian Stock Market - Review of Recent Changes

Nigerian Stock Exchange was not very popular among Nigerians in the locust years of military rule. Those were the years when only a few rich people exchange monopoly advantage and use it to their advantage, and those members of their families. Most Nigerians have remained in the dark.

that perception will change after the arrival demokracije.Vlada then took a radical step in the telecommunications sector, which has a lasting impact on the restructuring of the business stock.

D.G. Stock Exchange-Professor Ndidi Okereke with the approval of then President Olusegun Obasanjo bought and installed ICT facilities to improve operations razmjene.Prvi visible result was the live trading on a computer and credit investor's account within four days of the transaction. That change was revolutionary.

The success prompted the company to buy stock brokerage in the ICT revolution that has seen many of them adopting online services to improve their transactions.

At the time of consolidation of the banking sector in 2006 conzumated, the popularity of the Nigerian Stock Exchange and the inherent advantage in wealth creation and empowerment was on the rise among Nigerians. Nigerians at home and abroad joined the train at the stock market investors to participate in the creation of wealth rave.

total capitalization is less than one trillion naira in 1999, jumped to about 15 trillion naira before the bearish season set in early 2008.Medvjedast melt and the global financial crisis drove the capitalization of the Nigerian Stock Exchange for about 7 trillion naira in January 2009.

after the banking consolidation, it became clear that investors need more information on transactions in računu.Uslužnih warning has been introduced which now allow investors to be informed through their mobile phones as transactions done in their behalf. This has improved the transparency in the work of NSE and its sister organization of the Central Security and Clearing System.

issue the certificates, after repeated public offering is a shame for the NSE as the registration of companies was difficult to set a deadline for the award certificate. To solve this problem, email certificates, e-dividend and e-bonus policy was introduced in order to enable the investors enjoy the maximum benefit from their investment. Nigerians and foreigners can now easily carry out investment online and be properly informed about the status of their accounts.

Although the e-dividend and e-bonus is less problematic implementation, e-certificate has not had such a smooth ride. Investors looking to expand in its implementation beyond the initial deadline of December 2008. The Steering Committee Nigerian Stock Exchange seems to be agreed with the investors. Investors still have more time for dematerialized their certificates before the outright ban of the certificate.

One of the lessons learned from the melt bearish since 2008, is the need for market makers. After several consultations, exchanges now have 5 market makers for the further deepening of the standard practice in the stock market.

No doubt, the Nigerian Stock Exchange had a positive impact on the Nigerian gospodarstvo.Banaka and conglomerates are declaring fantastic results despite the bearish season. Dividends are declared and bonus question you got.

What are the changes mentioned above will continue to impact on the Nigerian stock market will be fully implemented in the coming days. Still, investors welcomed the improved transparency and still want more.

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