Do you lose money in the stock market?

Losing money in the stock market stinks. I get it. I lose money in the stock market all the time! However, over the long run, stock investors tend to win far more than we lose. If we can continuously use some of our stock market gains to pay for a better life, it's hard to feel too bad.

What happens if you sell a stock and take a loss?

Say you sell a stock and take a $5,000 loss in the process. If you're sitting on a $5,000 gain, suddenly that gain is wiped out from a tax-liability standpoint. And if you're looking at a loss that will exceed any gains you're sitting on or planning to take, up to $3,000 in capital losses can be used to offset ordinary income.

How do I stop losing money in the stock market?

1) Get busy doing hard things. If you tackle something really difficult and succeed, losing money in the stock market will feel less painful in comparison. You're distracted and engaged. It's the juxtaposition between taking action and being a passive investor that really helps put your stock market losses into perspective.