How people lose money in the stock market

People talk a lot about how you can make money in the stock market. However, knowing how people lose money in the stock market can be as important to avoid losing your hard-earned money.

So let’s look at some ways you will be guaranteed to lose money.

” Rule 1, don’t lose money. Rule 2, don’t forget rule 1. ” ~ Warren Buffett

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The balance sheet: How to read

Key takeaways:

“The balance sheet is a snapshot of what a given company owns and owes at the time of reporting.”

The balance sheet is divided into two main halves: “assets” and “liabilities and shareholders’ equity”.

The first half will tell us what the company owns and the second half will show us what the company owes to creditors and shareholders. The two halves should always offset each other as every dollar in assets has been financed either by shareholders’ equity or by creditors (liabilities).

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