Are you wondering,
is it possible to lose
everything in the stock
market?
If you are,
then today's video is for you.
We are going to talk about
whether or not it is actually
possible to lose everything
that you have invested in the
stock market.
I am Tiffany Thomas,
your wealth mentor.
I achieved financial freedom
in my thirties and became a
millionaire at age 40.
I'm here to help you do that
even earlier and easier.
So let's dive right in.
All right,
so today I'm walking you
through is it possible to lose
everything in the stock
market?
And yes,
it is actually possible to
lose everything in the stock
market if all of the
businesses go out of business,
if they all go bankrupt,
which if that is happening,
then there is something else
going on in the world.
And I really hope that we have
stocked up on our food
storage.
So honestly,
when people are wondering,
is it possible to lose
everything I've invested,
it's actually not possible.
If they have chosen to invest
in different investments,
if they are buying just one
company,
for example,
if they put all of their money
into McDonald's and McDonald's
goes bankrupt,
then they might lose the
majority of their money.
But if they start to see that
the price is falling,
the stock price is falling for
McDonald's,
they could still pull out
their money,
how much ever is left and
still have something to pull
out.
So it's not going to
immediately just drop to zero.
So it's not really possible to
just lose everything that
you've invested.
And especially if we are
investing in an index fund,
which has a whole bunch of
companies inside of just one
fund,
then if a few companies go
bankrupt,
we are still not going to lose
everything because we are
invested in so many different
companies.
For example,
if there are 500 companies
that we are invested in
through a fund that follows
the s and p 500 and let's say
five of those companies,
out of those 500 companies go
bankrupt,
that's not going to affect our
portfolio that much,
our investment that much
because there's so many other
companies that we are invested
in inside of that one index
fund.
So I know that I used to be
nervous about investing in the
stock market,
and I would think,
ah,
I don't wanna lose all of my
money.
What if that does happen?
And the reality is we are
investing in companies,
we are investing in businesses
that are providing goods and
services for us,
and they continue to grow over
time.
Yes,
not all of them.
Well,
that's why it's nice to invest
in an index fund that has a
whole bunch of companies
inside of it.
So a few that aren't doing
well isn't really going to
affect us.
We are definitely not going to
lose all of our money and have
our balance in our investment
account drop to zero.
So if we are smart about this
and not just putting all of
our money inside of one
company,
one investment,
we are going to be just fine.
I know for me personally,
I like to invest in an index
fund.
And if you want to know which
one that is,
I have another video about
that.
I will leave a link above.
You can check it out later on.
But I like investing in an
index fund that has a whole
bunch of companies inside of
it.
And then I also invest in
about 10 different individual
companies,
individual stocks.
And that way I have
diversification in my
investments.
So I'm not worried about
losing all of my money.
I've chosen a really good
index fund and I know that's
going to continue to rise over
time because most businesses
are going to continue to
provide value and get better
at their particular business
and increase their stock
price.
So they're going to grow in
value because they continue to
provide value to us.
And then the individual
companies that I select,
I feel like they are good,
stable companies and I will
keep my eye on them in case
they do start to go down in
case they aren't providing as
much value anymore.
And then I can still get out
without having it dropped to
zero.
I can still sell my
investments for at least some
amount of money.
It's not going to be zero.
I can still hopefully make
some money if I've had it for
the long term,
or I can just,
you know what,
cut my losses and sell the
company,
sell the shares that I have in
that company and put it into
something that I feel is going
to be a better investment.
And when we are talking about
losing everything in the stock
market,
honestly,
we don't lose anything until
we actually sell our
investments.
When we sell those
investments,
then we are locking in our
losses because we've sold
them.
But if we are just watching
them in our account go up and
down and never actually
selling,
then we aren't losing
anything.
And just like we saw in 2022
when pretty much everything in
the stock market went down,
if we didn't sell,
we can see that things are
starting to come back up this
year in 2023.
I know I've seen that with my
own investments.
When I saw the index fund
start to drop in price,
I wasn't thinking,
oh,
I need to get out and sell
that investment.
I thought,
you know what?
I know this is going to come
back up over the long term,
so I'm going to leave my
investment and actually add
more to that investment.
And I have a friend that I met
at church and she was telling
me her experience with the
stock market she had put money
in and she had seen everything
drop significantly.
And so she became very fearful
and sold all of her
investments.
So she immediately locked in
her losses because she sold
everything.
And later on things started to
come back up.
But she was just so fearful in
the moment that she couldn't
handle it.
And so she sold her
investments.
So she did lose a lot of money
because she sold.
But if she would've just hung
onto those investments and let
it ride over time,
over the long term,
those investments would've
come back up and she would've
made money.
So when we are investing in
the stock market,
we just need to have that long
term perspective,
realize that things are going
to go up and down over the
short term,
but over the long term,
they're going to continue to
rise.
And that is as long as we are
making good investments.
And if you want help making
these good investments,
I have a free masterclass for
you on how I can help you
invest in the stock market.
I will leave a link below in
the description to that
masterclass.
You can click on that and
check out the free
masterclass.
I don't want us to become
fearful when we are investing
in the stock market thinking
we are going to lose
everything that we have
invested because honestly,
that is not the case unless
there is something going on in
the world that none of the
businesses are able to
function anymore.
And if that's the case,
I'm not going to be worried
about my money in the stock
market nor in my savings
account because the banks are
probably not working anymore
anyway.
And I'm going to just be
worried about what food
storage I have and if I have
vegetables growing in my
garden and things like that.
The more educated we can
become about the stock market
and about investing,
the more money we are actually
going to make and not lose.
Comment below and tell me your
experience with investing in
the stock market.
I am curious to know,
and if you found this video
helpful,
please hit that like button
and share it with someone else
who would like to hear this
information and to the
subscribe button to subscribe
to my YouTube channel and to
the little bell to get
notified on when I post new
videos.
And if you wanna see even more
great content from me,
make sure and check out the
videos on the side of the
screen.
Thanks so much for watching.
I'll see you in the next
video.