Why Traders Think of Committing Suicide? : The stock market is a land of opportunities. Every single day traders start the day with a hope of making good returns. However, not everyone is successful. The reason for the failure of traders in the market is their incapability to understand the stock market. Moreover, it would not be wrong to say that stock market is one of the simplest ways to losing money. Therefore, to make good wealth in the stock market, the investors must follow a disciplined approach.
Impact of Losses on Traders?
The trader’s psychology in the stock market is not a very difficult thing to understand. In fact, their only aim is to make fast and good money. However, things never go as per the plan. Losses while trading in the stock market has a very negative impact on the traders. Furthermore, losing the major chunk of capital in the stock market makes the trader feel like he committed a suicide by entering the markets. Moreover, few even go to the limit of committing suicide.
In this article, we shall see the top reasons Why Traders Think of Committing Suicide in the stock market.
Reasons Why Traders Think of Committing Suicide
Bad Management Skills
One of the most common reasons for the loss in the stock market is bad management skills. The traders often put their whole money in one stock and have to pay the price. In fact, the traders must always take calculated risks. Moreover, by not following the right approach the traders make a heavy loss and think about committing suicide.
Failing to Understand the Market
The traders fail to understand the market and end up booking heavy losses. In fact, it is not a hidden fact that no one can predict the stock markets accurately. Furthermore, one wrong position is enough to land the investor in trouble. Moreover, there are multiple factors that affect the sentiments of the market. Failing to understand the market can lead to losses for traders. Consequently, the negative thoughts like suicide float in the heads of traders.
Not Putting the Stop Loss
The traders make heavy losses in the stock market, as they do not put a stop loss in place. Instead of booking little loss and exiting the positions, they tend to hold on or continue to average. Consequently, their risk in one stock increases which leads to heavy losses if the shares price do not move in favor of the trader. Therefore, the trader who books loss without putting the stop loss in place often commits suicide.
Trading on Leverage
A trader should always avoid trading on leverage. Borrowing funds to trade in the stock market is a crime. In fact, one bad move in the market can take away everything from the trader. Undoubtedly, all the uncertainties in the market can result in trader losing all his money. At the end, the trader will be under the burden to pay the borrowed money as well. The stress of repaying the money and covering the loss results into a trader committing suicide.
Not Applying the Learnt Concept Rightly
An individual becomes a trader after learning or taking courses from different academies. Just like all the students in a classroom do not score good marks. The same thing applies to the traders. The trader often fails to apply the concepts rightly while trading. Consequently, they face heavy losses. In addition, they end up blaming the academies and institutions for their mistakes. Not all the fingers on the hand are of the same size, so are the individuals who attend the courses at different academies. Some traders will do well with the same concepts taught in academies while other may fail miserably.
Just like trading, booking profits in a timely manner is also an art. In fact, the trader must always know when to book the profits. Failing to do that, the profitable trade can become a loss-making trade. Furthermore, the traders who do not book profits in a timely manner end up booking losses in trading. This leads to frustration, anxiety and disappointment. Consequently, thoughts like committing suicide creeps into the head of the trader.
Emotions have no place in the stock market. In fact, any kind of emotional excitement is a bad sign while trading in the market. In addition, riding high on emotions often forces the trader to take a wrong trade that will lead to loss of capital. Consequently, the loss leads to stress and the trader thinks of committing suicide.
Trading on Tips
The traders often fall into the trap of trading on tips. In fact, instead of looking for stocks on the basis of good fundamentals or technical like charts, they opt for tips. Moreover, the stocks given in tips most of the times perform the opposite of the tip and the ultimate result is a loss to the trader. The trading decision must be taken only after good analysis of the stock. Losses resulting from trading on tips lead to suicide because the trader feels the regret for getting into the trap of wrong stock and losing his money.
Lack of Knowledge
An individual who enters into trading without proper knowledge or information is all set to lose his money. Trading is meant only for those people who monitor the stock market closely. Furthermore, an individual without proper stock market knowledge will take bad decisions and lose his capital. When such individuals start trading and end up making losses, some of them end up repenting for the mistake and commit suicide.
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