How Not To Make Money In Stocks Guaranteed!

In my travels through investing and attempting to make money in the stock market I have been very adept at figuring out ways not to make money in the market.

I thought that it would be rather selfish of me to keep such “valuable information” to myself, so I will share these pieces of wisdom with you so that you may learn the secrets to losing money in stocks.

Here are 5 sure fire ways that to guarantee that you will not make money in stocks.

1.) Don’t do your own due diligence

It is important that you only listen to hot stock tips around the water cooler from people who don’t invest for a living. If you do this one simple thing, I will guarantee that you will not make money over the long term in the stock market.

It is important to take investing advice from your grocery store clerk, mechanic, and most of all your hairdresser on the next hot stock!

2.) Don’t Keep Any Investment Records

If you don’t want to make money in stocks, it is vital that you not keep track of when and why you purchased each stock. This way, in the future, you won’t have any idea of the reasons that you bought the stock in the first place and if those criteria have changed.

If you’re really lucky, you won’t even know your adjusted cost base for tax purposes!

3.) Only Invest In One Sector

Now, we all know that I love Canadian Bank Stocks, but if I really didn’t want to make any money in stocks I would invest all of my money in the Canadian Banks. Over the past few years this would have made a lot of money, but I’m sure there is still an opportunity to invest all of your money in one sector today and manage to lose it.

4.) Invest Only In One Country

With all the buzz about investing in China and India, I’m sure most of you have taken the opportunity to deploy some of your capital to these areas. However, if you really want to lose money you could invest all of your money there. I did just that in 1997 and am breaking even now…maybe I’ll leave it all there and see if I can lose it again!

5.) Don’t Use Stop Loss Orders

The final step to losing money in stocks is to never use or learn about stop loss orders. How are you ever going to lose all of your money in the stock market if you use stop loss orders to limit your risk?

Stop loss orders should be avoided at all costs and never used if you really want to not make money in stocks.

These are the Dividend Money sure fire ways to not make money in stocks.

Feel free to add other ways not to make money in stocks in the comments!


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  2. you forgot “hanging on to lossing positions and selling your winners early”!!

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  4. Wealth,
    That would have been a good one. I should have included it.
    thanks for stopping by, I appreciate your comments.

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