He is no kid, he is about the same age as me. What could have caused him to have so much confidence in himself as to gamble on nothing?
Yes, gamble. There is absolutely no way we can call what he did investment. He gambled on high-risk contra trading. (Contra trading just means selling stock that you ordered but have not paid for within the 3 day period before you have to buy. So despite the bad name caused by irresponsible traders, it is a neutral feature of trading.)
He made some money, 80K to be exact, picking some counters that managed to perform within the 3 days. A few friends called him "Prince Midas". He suddenly felt like he was an expert, and he had the Midas' touch.
Probably enboldened by the 300K from his father's savings, he bought shares with 700K that he didn't have. Crash... boom... bang... hundreds of thousands gone.
Overnight, this guy made his father and himself bankrupt. This guy had been gambling on nothing. Less than nothing is what he has now.
Is this how investments work? Trading? NO. Please do not believe it is!
True investments are logical, emotionless decisions based on clearly defined entry and exit points. True investments are managed carefully, weighing risk appetite and gains.
Zeag has some comments on money management that would be worth reading. He's 27 too. Read to find out how his brain ticks. He doesn't have astronomical gains like the guy in the article did once upon a time. But I'll entrust my money with him, anytime.
Who wants Midas as a friend anyway???
1 comment:
Haha, love your picture... Yea man... this guy really is going to have a tough time climbing out of the deep hole he dug...
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