How to Avoid Losing Money in Stocks?

Posted by Grace under Investing on April 9, 2016

Here is the simple solution on how to avoid losing money in stocks. A tips on how to not lose your investment capital in investing in the stock market.

Wondering why you are not making any profits in the stock market? Are you one of many people who are just losing money in stocks? Don’t you worry because, you can easily avoid losing your investment capital.


I know many investors do know about this tip. For the sake of my readers who are just a beginner in investing in stocks and don’t want to lose even a single cent in investing in stocks.


  • Making stock market investing profitable.
  • The procedures on how to avoid losing money in stocks.
  • Other useful stock market investing tips.

Avoid Losing Money in Stocks: A Simple Guide

1. Buy Blue Chip Stocks
It is recommended to buy blue chip stocks especially if you are investing long term. Buy stocks from those companies with solid foundation, stable and a strong balance sheet. Its business should already expand worldwide.

Take note that although blue chip stocks are stable, the stock market is risky. But, blue chip stocks can help you minimize the risks when investing in the stock market. So, buy blue chip stocks instead of trading penny stocks.

2. Buy Low Sell High
If you will buy a stock at a low price, you will have the chance to get more profits. The undervalued stocks are the best stocks to buy.

When the undervalued stocks, increased its prices. You will make money. However, finding undervalued stocks is quiet tough.

stock trading platform lose money in stocks

3. Don’t Sell Stocks If…
This is common sense, if you don’t want to avoid losing money in stocks, do not sell the stocks if the price was decreased. Imagine if you buy a stock with a price of $5.20 and you sell it at a price of $5.19, still, you are losing money although the stock price is just a matter of cents.

4. Dollar Cost Averaging
Dollar cost averaging can help you avoid losing money in stocks. How? Just keep on buying stocks every month in 5, 10, 15 or 20 years.

The idea is to buy more stocks when the price is low and buy few stocks when the price is high. But of course, the average of the stock price is what matters most.

Tips and Warnings

  • If you don’t want to lose money in stocks, don’t invest money in there. That’s a bad advice. I may say that if you want to avoid losing money in stocks, first educate yourself, then know what you’re doing!
  • Apply the “value investing” strategy.
  • Buying stocks at a low price and sell it at a high price is recommended.
  • High paying dividend stocks can help you generate extra profits that can cover your loses (just in case). So, choose high paying dividend stocks.

Let me know what you think about this guide. In your opinion, how to avoid losing money in stocks especially if the investor is a newbie investor. Share your knowledge in the comment box.

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