Can i lose all my money in stocks?
Many beginners worry about whether investing in stocks could wipe out all their savings. The short answer is yes, it is technically possible, but it is very rare if you spread your money across several companies. Stocks can go to zero and they can be delisted causing investors to lose their full investment. The most common way to lose everything is if you put all your money into one company and that company goes bankrupt. In that case, the investors are often left with noting.
Most people avoid this outcome by diversifying their investments. If you own shares in ten different companies, it is highly unlikely they will all fail at the same time. Even during market downturns, most companies survive and recover over time. Another way to reduce this risk is to invest in exchange traded funds (ETFs), which hold many different stocks inside on investment.
The realisty is that share prices rise and fall aand you can lose money if you sell at the wrong time. Losing every dollar you put in is not common if you take a sensible approach.