When you invest in the stock market you always lose money. And why is that? The reason is that losing money on the stock market is a matter of perception. And unless you overcome this perception, you will always end up feeling bad when investing in the stock market; even when you make lots of money.

At Stock Trend Investing, we do not feel like that. Let’s see what you can do about that as well.

First, we need to look at how you can perceive to lose your money.

Six Ways You Always Lose Money

Six ways how you can perceive to lose money when investing in the stock market:

1) The real way: you buy stocks or funds for one price and you sell them for a lower price. Not good business!

2) You sell too early. You doubt if you should sell or hold your funds and you decide to sell and take your profit. Too bad! The market goes up for many months after you sold. Your loss is all the money you could have made by not selling.

3) You sell too late. The market has gone up a lot and then it is going down. You were thinking of selling earlier, but you had fallen in love with the paper profits you had at that moment and you hoped the market would bounce back.

It didn’t and in the end the love affair was over and you sold your funds. You still have a profit but it feels like a loss compared to what you had on paper before.

4) You buy too early. If you only had waited a few more months. After you bought your stocks, the market went further down and down for months before it started to edge up. Now you are finally in the black again but that took a while.

You sell with a small profit, but it hurts to think about all that money that you could have gained if you would just have bought a few months later.

5) You buy too late. The economy and the market went through one of the biggest slumps in recent history. Then the recovery started. But is the recovery for real? All the news is so negative. You guess that it is only the gamblers who are buying and who are driving up the stock markets.

But the markets go up, and go up and go up. Finally you decide to step in. Markets continue to go up, you can make some profit and sell. But your profits are miniscule to what you could have earned when stepping in earlier. You feel you lost.

6) The sixth way in which you can perceive to lose money on the stock market is by having all these good ideas and by just not acting on it. A while ago you thought that it would be a really good time to invest in some funds. You thought it over again and came to the conclusion that you could earn al lot of money if you would invest now in some funds.

You thought it over again, and again, and again. And the market went up, and up and up. Now many months later, you feel it is a little too late to step in and invest. Oh, if you only would have acted a while ago when you were so sure that the time was right.

How to Win

Stick to your system and feel good about your investing choices

So, stock market investors always lose money if they look about it in this way. But you and I do not want to feel this way. We want to feel good about the choices we make, and make money as well. I do now. I have my system. I make my choices sticking to this system.

You can do the same thing. You do the hard work when you make your choice which system to follow. After you have made your choice, you stick to your system and just monitor if it gives you very good results. If it does, you feel good about it and you do not lose anymore.

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What is your system that ensures that you both make money with your investing decisions and at the same time feel good about it? Please comment on this blog post and share your opinion.