In the world of markets and trading just as profits take place on a daily basis, losses are also recorded on a daily basis. It may be a common phenomenon, but people only want to talk about the moments they earn, because those are the moments they most need to remember. After all, everyone wants to sound smart and profitable, right?
Few insist that tough times are the ones that make us wiser! Mistakes can be made daily, history can repeat itself, and few are those that can prevent events and stand out from the difficulties of the markets. Those who win will have the best memories to accompany them with their trading careers.
What could possibly be your worst feelings during online trading?
To lose everything without being able to get back everything you lost! Are you one of the many who lost a huge amount of their savings during the Great Recession? How did you feel back then? The Great Recession describes the economic downturn between 2007 and 2009 following the bursting of the real estate bubble in the US and the global financial crisis. The Great Recession was the worst economic downturn in the United States since the Great Crash in the 1930s. The Wall Street crash, also known as the Great Crash, was a major American stock market crash that happened in the fall of 1929.
1987 Black Monday Crash - This was one of the times many traders would like to forget. The stock markets have dropped by about 20% to 30%, which has dramatically overthrown the plans of many aspiring investors. What is the biggest mistake made by many at this time of uncertainty and misinformation? They borrowed to buy more stocks during a period of confusion and as traders, you should know that decisions taken on the basis of "noise trading" can be disastrous.
"Noise trading" typically occurs when ill-informed investors, trade on noise as if it were news or valuable information, and then it was a period where investors from all over the world have inferred information in a self-strengthening contagion of fear. Moreover, the largest decrease in world markets was recorded in Hong Kong, down 45.8%!
Who's lost the most to the stock market?
DotCom’s bust and mortgage crisis have also caused huge losses for some investors, unlike others who were able to win a lot. Japanese investor Masayoshi Son, founder of Softbank, is one case that could be discussed at this stage. During the dot-com bubble(1999), Softbank held a market capitalization of $200 billion, making Son's shares worth approximately $78 billion. However, in less than two years, it lost 95% of its value, resulting in Masayoshi losing more than $70 billion in personal assets, one of the largest personal financial losses ever reported.
But what’s the most interesting fact in the story of Masayoshi Son?
Since Son founded SoftBank in 1981, he's invested hundreds of times. The majority may have failed, but a hit was enough to advance his career. His reputation was built primarily through his $20 million investment in Alibaba Group in 2000, which was valued at $130 billion in 2018!
What’s more?
In October 2021, the Bloomberg Billionaires Index estimated Son's net worth at $23.1 billion! He was then the second richest man in Japan, while in May 2022, Son was placed 74th on the Forbes list of The World's Billionaires 2022.
Few of the biggest Stock Market Crashes in History (1929-2022)
- 1929 Wall Street crash
- Recession of 1937
- Kennedy Slide of 1962
- Black Monday crash of 1987
- Dot-com bubble of 1999-2000
- The financial crisis of 2008
- 2020 Coronavirus Stock Market Crash
History has taught us that markets can rise or fall. Much money is lost by some and much is gained by others. But what is the conclusion and what could be the answer to our initial question? Let's say Masayoshi Son! And what is the lesson from his story?
No matter how often you lose, no matter how much you lose in a single day, the only thing that counts is finding that 1 good shot that could make you succeed! And that's why brands and trading companies like XPro Markets have emerged, to give you all the resources you'll need to help you find that 1 good shot!
For active traders and investors, mastering the art of trading volatility is a crucial skill. Volatility, in financial terms, refers to the extent to which asset prices fluctuate over time. High volatility markets experience rapid price swings...
The global financial market operates as a dynamic ecosystem, where understanding the connections between different market movements can provide invaluable insights for forecasting...
The forex market, also known as the foreign exchange market, stands as the largest and most traded financial market globally. FXTM is committed to equipping our clients...
Cryptocurrency trading has rapidly grown into a bustling and dynamic market that attracts traders from around the world. With the potential for significant profits...
The year 2023 has been a landmark period for the international broker Octa (formerly known as OctaFX), characterized by significant achievements and substantial contributions...