Why do People Lose Money?
If there are more individuals today who are gaining money, there are definitely more of them who are losing wealth. But if you're going to look at it closely, these are the same people who actually have such fright about losing their profits or their savings (but then again, who isn't?). You may ask, though, "Why do people, even the smart ones, constantly lose money?"
The concept of business tells you that it's going to be real easy. However, the actual process of making money is a whole new affair. In the book High Probability Trading: Taking the Steps to Become a Successful by Marcel Link, you will know that around 90 percent of traders in stocks and other commodities always lose money. Moreover, it takes more than just determination, patience, hard work, and even business strategies to find the right ingredients in making it truly in the world of business.
Here are 4 basic reasons why you can and will lose money. Keep in mind that this is not an exhaustive list. Nevertheless, these are the common ones:
1. There is the negative thought or mental attitude right at the back of your mind. Generally, businesspeople are like blind-sided horses. They can look at everything in just one location. Even with the best strategies at hand, they tend to plant into their minds a very negative attitude. They always believe that they can actually lose with their endeavors; hence, they tend to focus their energies in making rewards rather than in the risks that they could possibly meet along the way. Unlike successful investors who create business strategies and techniques based on expectations that will allow them to get rid of the negative mental attitude, those who lose are the ones who are concentrating more on how they will not eventually lose their initial investment, losing great opportunities along the way in the process.
2. You allow fear to take over you. Have you ever been to a casino? If you have been truly observant with the players, you will soon realize that there are actually major players who are holding on to their own stakes, hoping that they wouldn't lose them during the course of the game. For example, try to sit in a no-limit Texas Hold'em - players who are not really afraid to fail and lose once in a while will be able to play the game right, because they can concentrate more on their strategies. This is completely opposite from those who have instilled fear in their minds and hearts.
3. There's too much responsibility at hand. In case you don't know, too much responsibility makes one irresponsible. There's definitely a huge problem that you will be facing, if you don't know how to delegate the work at hand with your employees. You will never be able to attain higher-quality work, simply because you cannot spend as much time as you can in every aspect of your business. This includes administrative and marketing factors. There's also the huge tendency that you will not be able to finish major tasks at hand, especially if there are a lot of deadlines that you need to beat in one full day. Most of all, you will probably lose all of the best opportunities since you don't have any more time to accomplish or even assess their impact in your business.
Improper delegation may have stemmed from the fact that the majority of business managers these days are looking for perfection. Thinking that their employees may not have the capacity to accomplish the different jobs at hand, they would rather do them on their own instead.
4. You pick the wrong kinds of people. A business without people cannot prosper, but then again, you're not just looking for a group of them. You should make sure, too, that they are the right ones. This means that their educational background, experience, and passion are the ones you're looking for to fulfill a particular job. Employees who don't and can't function well are a huge liability to the company. You are draining your investment and profit for their salaries, and yet they cannot contribute greatly to the growth and development of your business.
Of course, worth mentioning, too, is the wrongful analysis of businesspeople when it comes to their ventures. Some don't even know that they are already becoming victims of scams, whilst others go on without even thinking if the business is profitable in the first place.
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If you want to read more, either buy the book or subscribe to my blog - you choose.
Get up to the minute useful tips by subscribing to my blog - for free!
The concept of business tells you that it's going to be real easy. However, the actual process of making money is a whole new affair. In the book High Probability Trading: Taking the Steps to Become a Successful by Marcel Link, you will know that around 90 percent of traders in stocks and other commodities always lose money. Moreover, it takes more than just determination, patience, hard work, and even business strategies to find the right ingredients in making it truly in the world of business.
Here are 4 basic reasons why you can and will lose money. Keep in mind that this is not an exhaustive list. Nevertheless, these are the common ones:
1. There is the negative thought or mental attitude right at the back of your mind. Generally, businesspeople are like blind-sided horses. They can look at everything in just one location. Even with the best strategies at hand, they tend to plant into their minds a very negative attitude. They always believe that they can actually lose with their endeavors; hence, they tend to focus their energies in making rewards rather than in the risks that they could possibly meet along the way. Unlike successful investors who create business strategies and techniques based on expectations that will allow them to get rid of the negative mental attitude, those who lose are the ones who are concentrating more on how they will not eventually lose their initial investment, losing great opportunities along the way in the process.
2. You allow fear to take over you. Have you ever been to a casino? If you have been truly observant with the players, you will soon realize that there are actually major players who are holding on to their own stakes, hoping that they wouldn't lose them during the course of the game. For example, try to sit in a no-limit Texas Hold'em - players who are not really afraid to fail and lose once in a while will be able to play the game right, because they can concentrate more on their strategies. This is completely opposite from those who have instilled fear in their minds and hearts.
3. There's too much responsibility at hand. In case you don't know, too much responsibility makes one irresponsible. There's definitely a huge problem that you will be facing, if you don't know how to delegate the work at hand with your employees. You will never be able to attain higher-quality work, simply because you cannot spend as much time as you can in every aspect of your business. This includes administrative and marketing factors. There's also the huge tendency that you will not be able to finish major tasks at hand, especially if there are a lot of deadlines that you need to beat in one full day. Most of all, you will probably lose all of the best opportunities since you don't have any more time to accomplish or even assess their impact in your business.
Improper delegation may have stemmed from the fact that the majority of business managers these days are looking for perfection. Thinking that their employees may not have the capacity to accomplish the different jobs at hand, they would rather do them on their own instead.
4. You pick the wrong kinds of people. A business without people cannot prosper, but then again, you're not just looking for a group of them. You should make sure, too, that they are the right ones. This means that their educational background, experience, and passion are the ones you're looking for to fulfill a particular job. Employees who don't and can't function well are a huge liability to the company. You are draining your investment and profit for their salaries, and yet they cannot contribute greatly to the growth and development of your business.
Of course, worth mentioning, too, is the wrongful analysis of businesspeople when it comes to their ventures. Some don't even know that they are already becoming victims of scams, whilst others go on without even thinking if the business is profitable in the first place.
-----------------------------------------------------------------------------------
If you want to read more, either buy the book or subscribe to my blog - you choose.
Get up to the minute useful tips by subscribing to my blog - for free!