Financial safety

3 Ways to Lose All Your Money in the Stock Market

There's a reason investors -- younger ones in particular -- are advised to put their money into stocks. Though the stock market comes with some risk, it also offers an opportunity to not only growth your wealth, but outpace inflation, which is crucial when it comes to retirement savings. That said, if you're not careful, you could end up losing loads of money in the stock market, and putting your nest egg at risk in the process. Here are a few ways you might accomplish that not-so-desirable feat.

1. Attempt to time the market

Some people research the stock market in an effort to invest at just the right time. Now let's be clear: There's nothing wrong with doing some legwork before making an investment. Quite the contrary -- that's the smart thing to do, whether you're an investing newbie or have been at it for years. But if your goal is to magically time the market, you're unlikely to succeed. Even the most seasoned investors struggle to predict when the market will rise and fall, so rather than spin your wheels in an effort to get your timing just right, focus on investing in solid, reliable companies and holding those stocks for the long haul.