Hi,
First of all i thank you alot for putting up with website and you guys have done alot of work.

I think this maybe a silly question but i really want to know.

if i buy 200 shares worth $50 = $10,000 worth stocks
the price drops to $30 so the stock would be $6,000 worth. loss of $4000
and next time it reaches to $20 so it will be $4,000worth . loss of $ 6000

i loose $4000 and $ 6,000 so do i have to pay off these looses to anyone. (maybe by selling my house?)

and further more i was wondering if you can put which broker to select or what not to do videos or mistakes or risks.

Thank you so much.
sincerely
Coolm

Hi Coolm,

Glad to hear from you I am glad you like the site.

It is a good question you ask and yes trading is very risky and in fact the majority of people who try trading lose their money. If you were to lose on a trade as you have outlined in your example then yes that money would be taken from you as a loss and if you could not afford to lose that money then yes you could be put into a situation where you would have to sell off assets such as your house.

It is for this reason that traders should only trade with risk capital or money that they can afford to lose, and that anyone considering trading should speak to a registered financial adviser about whats best for them, which I am not.

As far as videos for learning about mistakes that many traders make in trading I would encourage you to watch modules 5, 6, and 7 of my free basics of trading course where I discuss money management, trading psychology, and position sizing.

Hope that helps. Please feel free to post if there are any other questions or comments.

Best Regards,
Dave