Book

In the Stock Market... Who is Responsible for the Loss?

Dr. Abdullah Sadiq Dahlan

Publication date: July 19, 2026 22:54 KSA

It is often said that the stock market is where fortunes are made, but the truth I have learned after years of following markets and investor experiences is that this market does not only create wealth, but also experience... and sometimes pain. For everyone who enters the world of investing initially thinks they can understand market movements and seize opportunities before others, but over time they discover that the toughest battle is not with financial indicators or stock prices, but with the human psyche carrying greed, fear, hesitation, and overconfidence. Therefore, I believe the stock market is not an enemy in the true sense, but rather resembles a daily test of discipline, patience, and wisdom. It does not distinguish between rich and poor, nor between a novice investor and one with decades of experience, and it does not grant success to those with more money, but to those who manage their decisions before managing their money. One of the mistakes many investors make is believing that achieving several successful trades means they have gained the ability to read the future, and here begins the first stage of overconfidence, which often precedes painful losses. On the other hand, when losses come, the search begins for a scapegoat to blame for failure—sometimes economic media, sometimes analysts, sometimes global conditions—while the investment decision ultimately remains a personal responsibility that cannot be evaded. Experiences have proven that financial markets do not always move according to the logic we imagine; stocks may rise amid negative news and fall despite excellent financial results because markets react not only to reality but also to investors' expectations and emotions. Therefore, volatility remains an inherent part of their nature. I believe the successful investor is not the one who achieves exceptional profits in a single year, but the one who can generate stable returns over many years while preserving capital and minimizing risks. The key is not speed of arrival, but the ability to persist. What is most striking is that the market deals with investor emotions in a remarkably clever way: you sell and feel regret when the stock rises! You buy and are surprised by the decline; you hesitate to enter and miss the opportunity; then you enter late and begin a new cycle of anxiety—as if the market tests your ability to control your emotions more than your ability to read numbers. Equally dangerous is excessive borrowing for investment purposes. Expanding through leverage may seem tempting in boom times, but it turns into a heavy burden when the economic cycle changes or markets fall. Financial history has shown that many investment empires fell not due to a lack of opportunities, but due to excessive debt and poor risk management. In my view, successful investing rests on simple rules, but they are not easy to apply: invest only in what you understand, do not put all your money into a single asset, do not let emotion drive your decisions, always maintain liquidity to face surprises, and continuous learning, reading, and analyzing mistakes are far more important than seeking a quick tip or fast profit. Perhaps the most beautiful lesson the financial markets teach us is humility. No matter how experienced an investor is, the market remains capable of surprising them, and no matter how much success they achieve, arrogance may be the beginning of decline. I conclude by saying that the stock market is not a place for quick riches as some imagine, but rather a school from which no one graduates, and each day carries a new lesson for those willing to learn. So if there is a real opponent in the world of investing, it is not the screen displaying stock prices, nor economic news, nor even market volatility, but that inner voice that sometimes drives a person to greed when they should be cautious, and to fear when they should be brave. And whoever conquers themselves first will be more capable of success in any market, no matter its fluctuations. What I have presented today is a personal opinion, with which others may agree or disagree, but it is the view of someone who has followed the market for a long time.

Stock market, Stocks