Time are uncertain and everyone is trying to deal with the current circumstances the best they can. Where some are not so badly hit, others are finding challenges that are harder to overcome. Businesses have closed down temporarily while others have gone remote with no foreseeable future of returning to normal functionality. Financially instability has left employers, business owners, and employers all on an emotional rollercoaster. Market fluctuations have caused investors to be apprehensive about their every move. Investment losses will inevitably cause worry, so here's some advice on dealing with them.
Just as you would like to give in to all this stress and chaos, all is not lost. If you are an investor who has lost money and is suffering financial losses, there are still steps you can take to get back on your feet. It’s not only the monetary loss you are dealing with but also shock, fear, regret, and anger. You are blaming yourself for believing advisors who guided you in the wrong direction. This state of yours could be having an effect on your loved ones around you. It could be affecting your health too as you may be finding it hard to move one. It’s understandable what you are feeling right now but it is equally important to understand that a major investment loss doesn’t mean the end of the tunnel.
Listed below are some of the most common causes of investment losses:
Breach By A Broker
All registered investment advisors have obligations towards their clients to ensure they are guided in the right direction with their investment. Small losses cannot be avoided however, those that are huge and could have been averted should be kept in check. The broker must act in the best interest of their client rather than themselves. If this is breached, then you can file a complaint of fraud against them.
False Recommendations
All stockbrokers and companies dealing with the same are subject to certain sustainability rules. Brokers must take into consideration the position of the client before recommending investments. Also, the strategy behind the investment must be made clear until it is completely understood by the client. They must be undertaken only if they meet the needs and circumstances of their client. If you are misguided with wrong information, then you can file compensation for the loss suffered.
Purposeful Omissions or Misrepresentations
All financial advisors are held by the law to refrain from purposely making any misrepresentations or omissions when guiding a client to an investment opportunity. Giving false hopes, claims, and promises by omitting to mention a vital point about the investment is punishable. Any information that is a part of the investment should be properly disclosed most efficiently so it is clear for the client and they can also refer to it in the future.
Excessive Trading
Excessive trading includes when a broker makes an inappropriate amount of trades from the client’s account. Mostly this is done without the knowledge and awareness of the client. This could result in major losses for the client while the broker can make money through illegitimate commissions and fees that he will charge for making these trades on your behalf.
Ponzi Schemes
There is always that one person who comes up with a new scheme every day to make you rich overnight. Beware of such people as there are no shortcuts to success as Ponzi schemes are a type of investment fraud where the money is shuffled around new investors from the previous ones. It always eventually comes crashing down.
If you have been a victim of the above scams, then it’s time to brush off your fears and depressions and take a step towards correcting the situation at hand. Below are a few tips to get you started.
Reach Out To Professionals
We understand it’s hard for you to trust anyone right now but sometimes you just have to learn to trust again if you want to move ahead in life. You should get in touch with investment fraud attorneys like Northstar Financial Services Ltd at the earliest. They will be able to conduct a comprehensive investigation into what went wrong with your investment. They will be able to analyze if the core problem arose from the documents and records you have, the background of your financial advisor, the promises made, and the fraud or negligence type you have sustained. Once they have the necessary information, they will be able to guide in on what actions are needed to be taken to get a full and fair compensation claim if you have been a victim of an illegitimate investment scam.
Starting Putting Things Together
Start with letting go of wishing that your balance would be the same before you faced the losses. Accept the new account balance and start working on it. You cannot control the stock market and there will always be a risk involved when you are investing in it. Find an investment where you have direct control. Learn how to trade and invest your money as per your understanding than blinding trust brokers or financial advisors. Redefine how to deal with risk by making yourself mentally and physically stronger. Losing sleep over the stock market will not make it go higher or faster. Make sure that the success of your next investment is completely dependent on yourself.
Move On Ahead
If you have suffered a tremendous loss but still want to stay in the stock market, your attitude is admirable. Turn off the commercial channels that discuss the stocks and speculate it with no evidence and get into the core of it yourself. Turn to more credible sources.
Once you have accepted the changes you need to make in your approach and acknowledged where you went wrong the last time, you are ready to move in a more positive direction. Be assured you are not alone in this. Many people have made at least one bad investment in their lifetime and paid a big price for it. Eventually, they all use their investment losses as a learning experience and move ahead in their journey to successful investments.
