Why Do Investors Lose Money?

There are two main reasons why retail investors lose money. The first is due to dealer malfeasance and/or advisor greed/incompetency. The second reason is related to investor behaviour. Of course there are market disruptions that cause losses despite the best laid plans of investors. In this article we discuss only the two main manageable sources of investor losses. For the past 15 years we’ve interacted with retail investors, many of which have lost money investing in the market....