tech

Everyone knows that the probability of losing money in stocks is high, why is it

When it comes to the stock market, it is indeed a place full of risks.

The changes in the market are as unpredictable as the weather, with black swan events occurring from time to time, the economic situation fluctuating between good and bad, policies being adjusted from time to time, and industries experiencing ups and downs.

Moreover, the competition for capital is fierce, and many times the rise and fall of stock prices have little to do with the economic situation, depending entirely on the flow of capital and market sentiment.

This series of changes leads to stock prices fluctuating like a roller coaster, and investors' money may shrink dramatically in an instant.

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Moreover, information is asymmetrical, with some people being able to know inside information in advance, and some people deliberately spreading false information. We ordinary investors are often kept in the dark and are prone to making mistakes when making decisions.

In addition, leveraged stock trading amplifies the risk to an extreme degree, which may lead to bankruptcy overnight.

Many people find it difficult to withdraw from the stock market.

One important reason is that it is not easy to find a job, and finding a satisfactory job is even more difficult.

Today's job market is highly competitive, and the industry one is in may not have much development prospects, and the future is full of uncertainty.Without a stable and well-paying job, there is no stable source of income, and it is difficult to achieve various life goals.

At the same time, the channels for social advancement are too narrow.

Working honestly and diligently is hard to achieve significant improvement in economic status and social status.

The stories of getting rich overnight in the stock market are too tempting, and everyone wants to try their luck, hoping to change their fate.

From a human nature perspective, greed and fear are the two major "culprits".

When the stock prices rise, greed takes over, always thinking that they can rise more, reluctant to sell, and thus missing the best opportunity to make money.

When the stock prices fall, fear prevails, afraid of losing more, wanting to sell but unwilling, and feeling extremely entangled.

The gambler mentality is also a problem for many people.

Always feeling that they can accurately predict the stock market, firmly believing that the next investment will definitely turn things around, so they keep investing, getting deeper and deeper.The influence of sunk costs also comes into play. Having invested a significant amount of time, energy, and money in the stock market, if one decides to withdraw, it feels like all the previous efforts have been wasted, so it's hard to let go, always wanting to break even or make more.

In summary, the stock market is fraught with risks, yet people find it difficult to quit. There are not only the realistic dilemmas of finding a job and having no way to advance, but also the influence of human nature, including greed, fear, a gambler's mentality, and sunk costs.

To truly leave the stock market, one must recognize the risks involved, strive to find a good way to make a living in reality, and overcome the weaknesses of human nature, making wise choices.