Why do people lose money in the Stock Market (Options Trading)

- They do not understand what the options really are & how the options work in the Stock Market or how the stock market works in general. They also do not understand what exactly is S&P 500 , Dow Jones , Nasdaq and what impacts their movement and why they differ in terms of the % movements which is why they miscalculate and that leads to the losses.

- They do not have much or proper knowledge of technical indicators & are always emotional about their trades and fail to capture profits because of greed (they want more) but when it comes to the losses, then they do not stop the losses thinking the trade will reverse in some time but this doesn't happens most of the times.

1% movement in the Dow Jones is equivalent to 1.5% movement in the S&P 500 and 2% movement in the Nasdaq

- They do not have any or proper knowledge of Options Greeks & do not know how to calculate the premium price (or the Stock price or the price of an index) which then makes them "speculate" and allow them to fall into the traps of the market manipulators who drives the price and the stock market.

- They do not understand the impact of theta & its correlation with delta (decay & time) in the options trading rather they just think that if the premium price is this much today at this strike price then the same will be there tomorrow and day after however this is not the case.

- They always trade through speculation rather than technical indicators and are often looking into 1 minute or 5 minute movements (knowingly or unknowingly) that stocks and the stock market can give sudden moves that then creates "panic" and force them to close the trades in losses.

Dow Jones often represents what is going on in the economy which is why Dow Jones's movement is often considered along with S&P 500 (sometimes) but not the Nasdaq's

- They want to trade daily without waiting for opportunity because they think that stock market is all about easy money and they can make 100% profits every day, which is NOT TRUE because stock market is designed in a way that requires patience and thorough understanding/knowledge of the movement, traps and many other things all at the same time.

- They want to make money instantly but in actual they lose money instantly because stock market came into existence to help the rich becomes richer and the rich can become richer only if they lure the retail traders and through fluctuations, they can manipulate the sentiments and the trades so that ultimately the rich can make money and the retail traders lose money in the stock market.

the more you play, the more you lose; the less you play, the more you make

- They trade without calculating risk to reward ratio & become greedy when market in favour. They do not use proper stoploss and they do not pre-calculate or they are simply NOT ready to take even 1% loss rather they think that every trade will be and must go profitable HOWEVER that is TOTALLY FALSE and its can never happen and even the market manipulators (who run the market) sometimes see the losses (if you remember the gamestop and reddit "thing" happened a year back).

- They trade through shorter duration expiries like 0DTE or anything which is less than 7DTE and they think that because it gives heavy money so they will also make heavy money however they forget that the lesser expiry means premium value will drop heavily and the profits which were supposed to be 100% are now only 10% or 20% however losses means the trade value becomes 0 because its the expiry day. They chose the 0DTE most thinking it will give them heavy money but the opposite happens most of the time.

- They trade emotionally, can't bear losses and with just 1% fluctuation (loss), they try to exit their positions in hurry because they "speculate" and don't understand the real movement and don't understand that the fluctuations are normal and that they must be ready to accept some fluctuations and should calculate a proper stoploss before entering into the trade.

Stock market is the game of patience and knowledge and probability

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