Why do losses happen in the stock market - and how to prevent it?

Why Do Most People Lose Money in the Stock Market? Here's How You Can Avoid It 

if the market takes money from you every time... then the problem is not in your strategy... the problem is in your thinking!"

The market gives everyone a chance... but most people take that chance at the wrong time, with the wrong mindset.

Today we will talk about - "Why does loss occur in the stock market... and how can it be stopped?" Watch the full video... it can change your game of loss.

🔍 Why Beginners Lose Money

The first reason - "Trading without learning." People invest money in the market without understanding the basics - they neither understand price action, nor trend, nor candles. This is the market brother, not a school - here every mistake is punished… in the form of a loss.

Second reason - “Think of becoming rich quickly.” Over-leverage, random trades, taking 5X, 10X margin — all this is the result of greed.

  Deep Dive: 3 Psychological Mistakes

1️⃣ FOMO – Fear of Missing Out

Taking trades after seeing the profit of others is the biggest trap. You did not get the signal, but your friend made 10k… so you also take entry – without logic.

✅ Solution: Make your own system. If the signal did not come on your rule, then skip the trade.

2️⃣ Revenge Trading

Loss happened, got angry… then immediately took another trade. Trade is going against your emotions, not against the market ✅ Solution: Don’t trade until your mind is stable. Market opens daily, you will get a chance.

3️⃣ Overconfidence / Greed

3 Profit made? Now it seems I am in the market! Then big lot size, big risk — and one wrong trade… game over.

✅ Solution: Even after profit, maintain the same discipline that you maintain after loss.

  Technical mistakes that waste money

No Stop Loss: One trade eats up the entire capital.

No Risk Management: You put everything in a single trade.

No Plan: No idea of entry-exit, just enter when the price has gone up.

✅ SL should be fixed in every trade. ✅ Risk more than 1–2% Never take it. ✅ Have your daily plan ready – in which market level, setups, capital allocation is written.

  How to stop loss – Practical Framework

STEP 1: Keep a Trading Journal

Write every trade: why did you take it, what did you think, what happened? This will help you understand your pattern – you will not repeat mistakes.

STEP 2: Build a system, follow signals

Stop random entry. Build a setup – which has been backtested.

STEP 3: Weekend Learning, Weekday Execution

Study charts on weekends, take notes. On weekends, only action – without emotion.

STEP 4: Risk Control = Game Control

You will save money only when SL is fixed and position size is wise.

  (Emotional Connect)

“I was doing the same thing — without SL, overtrade, greed. Sometimes I lost ₹10,000 in the pursuit of earning ₹1000."

Then understand — this is not a fight with the market… this is a fight with yourself. When I started keeping discipline above emotions… then the market started giving money.

You will not learn trading until… you do not consider losses as your guru.

 (High Emotion & Trust)

Today your losses are teaching you something — the important thing is whether you are listening or not?

If you took every point of this video seriously… then your loss is now an investment — For your better future.

👉 Such are the real trading talks, without any lies... I am the one who trades every week. Follow, subscribe... and start taking trading seriously. This is Arun Raj Trader - your stock market friend, not a fake guru. 🔥