Equity as an asset class is by far the top-performing asset classes for long-term investments. Over time, equities generate higher returns than other asset classes such as bonds, cash, and real estate. While equities can be volatile in the short term, subject to market fluctuations, they provide investors with the most attractive returns over the long term. But that doesn’t mean investors don’t lose money in it. Despite potentially higher returns, equities are subject to market volatility brought on by economic conditions, industry trends, and geopolitical events. In fact, stock market crashes and downturns are not uncommon, and investors who are not prepared to weather these events will suffer significant losses. Investors tend to lose money in the stock market by making the mistakes listed below.