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Why Retail Investors Keep Losing Money in Bull Markets (And What Actually Fixes It)
Muhammad Irfan4 min read·Just now--
Most people assume losing money in stocks only happens when markets crash. Buy during a recession, ride it up, sell near the top. Simple enough, right?
The frustrating reality is that millions of retail investors lose money or underperform during bull markets, the exact conditions that should be making them wealthy. Understanding why this happens is more useful than any hot stock tip you will find online.
The Buy High, Sell Low Trap Is More Common Than You Think
When markets are rising, optimism feels logical. The S&P 500 is up 20% for the year. Your coworker mentions his portfolio. You see headlines about record highs. So you buy.
The problem is that by the time a bull market feels safe and exciting, valuations are already stretched. You are not getting in early. You are getting in late, often right before a correction shakes out nervous holders.
Then the market drops 10% or 15%. Nothing dramatic by historical standards, just a normal pullback. But you bought near the top, your account is now down, and suddenly holding feels unbearable. So you sell.
You just bought high and sold low during a bull market. This is not rare. It is the default behavior for most people who invest based on how they feel rather than a plan.
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