Is it possible to never lose money in the stock exchange?

It is possible both theoretically and in practice, in due circumstances. That is to say, in the right market, with the right tools and strategies, and a fairly long time horizon.

And the reason is very simple: the stock market always goes up as years pass. This is the chart of the returns of different financial instruments over the past two centuries:

From the chart, it’s possible to see how shares’ returns are steadily growing over the long and very long term, and eclipse those of other financial instruments. The stock market yields an annual average return of 10%, an advantageous percentage that has decades of historical data behind. The combination of these factors makes the stock market the ideal environment to move in for a loss-averse investor, as long as it has a long time horizon.

However, the above trend is an average of the entire stock market and not of the individual shares, whose returns depend on multiple factors and are linked to the performance of the associated companies, which can even go bankrupt.

That’s why it’s necessary to diversify with a large equity portfolio both geographically and sectorially, so that overall, the portfolio’s performance mirrors that of the entire market.