You Lost More Than $100K In The Stock Market? Here's how to deal with the pain
- Stephen Loke
- Apr 11
- 4 min read
I remember many years ago I used to help people do analysis about stocks. You see I was quite good at technical analysis.
So of course, many people come to seek advice from me.
From there I get to listen to many stories about stock market success and failures.
If I'm not mistaken someone mention to me long time ago about how one can lose even a house because of the mistakes one can make in the stock market.
If you have lost more than $100,000 in the stock market, it can be very painful. Some of you might have lost more than $500,000 and it really stings hard.
You felt like you are such a failure
You felt like you should never have dabble in the stock market
You wish you never heard about that stock that you love so much
The 2 Desires Of A Person Who Lost A Lot Of Money In The Stock Market
If you are honest, there are 2 things that you would like to do.
First you wish you can go back in time and stop yourself from buying that position. You wish that at least you can get back what you have lost.
Am I hitting the right notes here?
Secondly, you are probably very successful in whatever you do (except the stock market) and you can't figure out why you fail at the stock market.
You want to prove that wrong and you want to win back from the stock market and win big time like Warren Buffett.
I think I'm touching the soul and heart of some smart men out there.
Well, if you are reading up till here so far, I have good news for you.
You can actually:
Make back all that you have lost
Win big in the stock market in the future
Plus...do all of it without much stress
First stop doing what that has been causing you to lose money
In the real world, the harder you work, the better you become.
The odds of success increases with the amount of effort that you put in. But in the world of the stock market, staring at the screen and pouring over charts can just give you a headache.
Especially now with the trade war and tariffs going on.
The stock market just tanks and you are hurt. Your portfolio drops like a rock. Some stocks drop 10%.
Look my friends...
If you have been trying technical analysis and charting and buying individual stocks and attending classes after classes and still lose money...
You should stop doing what you have been doing.
Stop torturing yourself watching yourself make trading decision that make your portfolio go redder each day.
Take whatever money you still have in your previous trading account and start a new brokerage account and invest in the SPY or VOO
Time and time again the S&P 500 index has gone up by 10% on average every year.
This is despite recessions, depression, oppression, war, trade wars, tariffs or whatever.
If you don't believe me look at the chart of the S&P 500 below.
This is the chart of the S&P 500 since 1927.
Amazing isn't it. It has been trending up moving from the lower left to the upper right. The grey areas are recessions.
No matter what happened, the stock market has just been trending up over the years.
Sure there will be pain here and there and there were stock market crashes but eventually the S&P 500 has always gone back up.
It is hard to say for an individual stock.
For example if you have chosen to invest in Gamestop, you might be losing quite a lot of money never to see it recover.
But it is very different with the S&P 500.
The reason is because it is made up of 500 of the strongest and biggest company in the United States.
Every now and then the weaker companies will be replaced by a new stronger company that represents the future. As the earnings of these companies grow, so will the S&P 500.
Stop the pain, stop losing money in the stock market and invest monthly in SPY or VOO
While it may sound very simple, the best thing for most investors will be to invest monthly in the SPY etf and VOO.
These exchange traded funds tracks the S&P 500 and they have very low management fees.
SPY charges an expense ratio of 0.09% and VOO charges an expense ratio of 0.03%. What this means is that if you invest $10,000, you only need to pay a management fee of $9 for SPY or $3 for VOO per year.
Many mutual funds charge way higher than that.
Over the course of many decades they can eat into your profits.
Let's say you invested $100,000 at the start and put in $5000 a month. You do this for 30 years and let the money sit in the S&P 500. The average return is 10% per annum.
Compounded over the years, this is roughly what you will get:
The interesting part is your total contribution is only $1.9 million. The rest of the money is free money.
Oh....the amount of
pain
heartache
worry
stress
hours of staring at charts
that you will be able to avoid with just one simple investing strategy. And guess what...
It is Warren Buffett approved...don't believe me...go search the internet.
Stay tuned for more articles like these. Next I think we should talk about investing for the successful businessman as many smart people still lose a lot of money in the stock market despite making a ton of money in their fields.
Until then
Take care and invest in the S&P 500 each month!
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