6) Psychology
They say stocks can make you rich, but why do so many people lose? Data shows the majority of retail traders lose money. Not because the stock market is a scam, but because most people enter unprepared. Let's break down the reasons so you don't become a statistic.
Stock losses occur when investors sell shares below their purchase price, or when the company they hold goes bankrupt. Losses can be realized (already sold) or unrealized (still holding but the price has dropped).
Imagine someone who just got their license immediately driving on the highway during a rainstorm, at night, while scrolling their phone. What happens? Almost certainly a crash. Many people enter the stock market exactly like this — they open a brokerage account and immediately go all-in on the most volatile stocks without learning the basics first. The result? Predictable.
During the GOTO and BUKA IPO hype, many first-time investors put millions in without understanding valuation. Many ended up stuck at the IPO price with 50-70% losses. The reasons were classic: following friends, FOMO, and having no exit plan.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open Profit / Loss CalculatorWhat percentage of people lose money in stocks?
Various global studies show about 70-90% of retail traders lose money. But this is mostly because they're short-term trading without a clear edge. Long-term investors who consistently pick quality stocks have a much better track record. The key: don't be a trader if you're not ready — start as an investor first.
Is it possible to consistently profit from stocks?
Yes, but it requires time, education, and serious discipline. There are no shortcuts. Successful investors like Lo Kheng Hong (Indonesia's Warren Buffett) took more than a decade to build their track record. Focus on the learning process, not instant results.
