VideoPsychology6 min read
Why most people lose money in the stock market
Most losses come from one pattern: buying late after a rise and selling late after a fall. Here is why the crowd does it, and how a plan breaks the cycle.
Trading psychology
FOMOchhoot jaane ka darr
Fear of missing out: the urge to jump into a trade because the price is already running and others seem to be making money.
FOMO, fear of missing out, is the feeling that pulls you into a trade after the move has already happened. A stock is up 8% by noon, Telegram groups are celebrating, and you buy at the high because sitting out feels worse than losing. The trade has no plan, no defined stop and often a terrible entry. FOMO is one of the main reasons beginners buy tops. Suppose SBI gaps up from ₹800 to ₹840 on results and you buy at ₹845 because everyone says it will go to 900; if it drifts back to ₹825 that afternoon, the loss is real and the reasoning was never there. The antidote is a written plan that says what you trade and where you enter, plus the acceptance that missing a move costs nothing. The market will offer another setup tomorrow. Chasing a move rarely ends well.
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