When you lose money on the stock market, it’s called a capital loss. When you gain money on the stock market, it’s called a capital gain.

There may be many reasons an investor has a capital loss. Perhaps a company goes bankrupt. Perhaps the investor fears the market will crash and decides to sell their stock. Either way, after a loss the investor has to work much harder make their money back. For example, if you have $100 and you lose 50% you are left with $50. To get back to $100 your $50 has to grow by 100%, not by 50% as most people think.

Tips and tricks

Don’t let the losses get to you. Everyone’s been there at some stage. So if you’re feeling low, just remember the investment game is a marathon, not a sprint.

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