Connect with us

Hi, what are you looking for?

Diversified Industries

Losses in the Markets are Inevitable

Being a long-term investor requires a lot of patience, and it also requires being aware that losing money is very possible. And when you lose money, there’s really nothing you can do about it. Over the past century, the stock market has been found to hit new highs on only 5% of all trading days. Bear markets, brutal market crashes, and recessions are inevitable and you will experience them as an investor.

The markets are unpredictable

Changes on the stock market
Over the past century, the stock market has been found to hit new highs on only 5% of all trading days.

On average, you can plan to lose at least 10% of your money once every 1-2 years. It is also advised to plan on losing 20% of your money once every 3 or 4 years, 30% once every 6 or 7 years and 40% or worse every 10-12 years.

Of course, these time frames aren’t set in stone as the market is unpredictable (I say “average” loosely). However, it’s always good to be prepared. Investing in the stock market long-term will certainly grow your money over time, but don’t be surprised if you lose money without warning once in a while too.

The same principles apply in almost any risk asset: Anyone who’s invested in cryptocurrencies can expect to see 20% losses within minutes, or 50% losses within days. People put aside money in the present so that they can have more money in the future. However sometimes in order to get to the long-term, you have to see your present holdings fall.

Stock market loses

You’re going to be disappointed if you’re always expecting your investments to be high, because absolutely nothing that makes money in the long-term is up all the time in the short term. Sometimes, getting money long-term involves losing money in the short-term — it’s inevitable. It’s important to know this before starting investing so that you aren’t disappointed.

Happy Trading!

You May Also Like

Blog

An investor’s best friend is the candlestick chart, which you can use to identify trends in stocks, commodities, and currencies. The most reliable patterns...

Technology

The blog post breaks down what are candlestick patterns, how to read easy to see patterns, how candlesticks are formed, how to read charts,...

Diversified Industries

This blog breaks down the essential candlestick patterns that will help traders with investing. Also, investors are encouraged to look into the body, wick,...

Diversified Industries

In this blog we explore the top 6 unknown and cheap stocks for millennials to invest in. This list includes: Zynga (NASDAQ:ZNGA), Franks International...

Investor Scene

InvestorScene.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, in-depth broadcasts on Stock News, Market Analysis and Company Interviews.

InvestorScene.com also provides financial news PR marketing and advertising for third parties for disseminating news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.



Copyright © 2022 www.investorscene.com - a GloBull Media, LLC Brand