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The following are reasons why you go broke doing business on the stock exchange:

1: "NO EXIT STRATEGY". The level of greed determines how much a person will incur losses in the stock market.

2) Just being followers. People buy stock based on half-truths and rumors and end up losing a lot of money.

3) Make investments based on emotions - This is a big mistake. Some investors do not know when to cut their losses. They let their emotions control them. As a result, they pour more money into the stock market when they have to cut your losses and move on. This is no different with gambling, and should be avoided.

4) Fear. When investors fears to lose money in the stock market, they eventually lost. Decisions are often made only because they saw the stock price up and down for a moment, sometimes the price moves up or down in minutes and they consider that it is a good time to sell or buy, but in fact a few moments later there is an unexpected situation.

5)Ignorance. Ignorance is a killer. Investors need to educate himself by attending financial seminars, read books and other materials about the stock market.