Why do some stock market investors suffer losses?

Some individual investors are sometimes exposed to loss in the stock market, so others resort to directing their money to saving without risk, with the aim of obtaining a periodic monthly or quarterly return, even though this may miss out on good investment opportunities.

Losses in the stock market are attributed to individual investors

Rania Yaqoub, a financial market expert, said that losses in the stock market are mostly the share of individual investors, because institutions have competent investment managers who have the ability to make investment decisions in a way that fulfills the institutions’ requirements for investing their cash liquidity.

The financial market expert added that the investor who is not qualified to invest in the stock market, among the individual investors, is exposed to losses, as there are individuals who achieve high rates of profit from their investment in the stock market, pointing out that some markets in the region set conditions that must be met by those wishing to invest in the stock market, including conditions related to awareness of investing in the stock market and financial solvency.

Stock market

Yacoub pointed out that an unqualified investor can invest in the stock market through safe investment tools, such as investment funds, pointing out that the state supports these funds by exempting them from profits taxes, and this supports them achieving the highest possible rates of profit, exempt from taxes.

She added that the investment fund is managed by a professional person who is able to make decisions according to the fund’s investment strategy, pointing out that the stock market achieves high profits for competent investors.

For his part, Dr. Muhammad Abdel Hadi, a financial market expert, said that investing in the stock market requires that the investor obtain education in the field in which he will begin pumping his investments, which is the stock market, because by learning to invest, he will be able to achieve profits.

He added that the investor should not make his decision based on circulating news, or calls to buy via social media, also, he should not buy a specific stock just because its trend is upward.

He continued, the investor must have the desire to invest for the long term and not speculate, pointing out that investing in stocks on the stock market is a high-risk investment, while there are safe investment tools such as index funds and investment funds with fixed or variable returns.

He continued, Investment in the stock market must be through excess liquidity than the investor needs, so that he is not exposed to external pressures that push him to sell, and he must also have the desire to invest in the long term and not speculate.

He pointed out that investment funds vary between open and closed, and each of them has a fixed or variable return. Some of them are cash, and those for investing in stocks, real estate, or gold, and their documents can be purchased through banks or some companies licensed to practice the activity from the General Authority for Supervision finance.