I've been there before as well bro. Keep things in perspective. When you tell family just tell them point blank.
Also I've made and lost fortunes a few times. You never give up but you must change your approach. Remember margin is for short bursts and it is designed to screw.
How? Well for starters everytime you buy something on margin you must remember that it isn't yours. It causes you to overpay for stocks at the top and forces you to sell at the bottom.
Think of it as fire wood. If you have too much margin and a lot of people owning the same name are in the same boat then selling will beget selling. The name tends to burn down in that environment.
The margin beast will also cause you to be greedy at the top. As "I want more money" creeps into your pysche and you overhold the stock.
At the bottom you think about where you were and you say to yourself, "I can't sell now". So this causes you to get screwed when the stock keeps getting cheaper.
Understanding margin will help you become a better trader as you can feel what a stock wants to do.
Also Margin if you study your history was responsible for the 1932 stock market crash. They allowed 10% to be laid down. Then everyone went on a buying binge. Then the banks let key customers know that they were going to call in the margin before they actually did it. Then they caused a panic by calling in the margin loans right after. So you see Margin even back then and now is designed to screw.
Study your history and you won't make the same mistakes as other people smarter than us did.
I remember this guy..DaThong, lol, you were giving me sh*t when you must have bought goog around 440, asking me if I covered and blah blah. I had the 420 puts until today, which I sold.
I wasnt trying to mock you for being long, just thinking you were stupid for thinking that 440 was a bottom
you were naive. i too was once. after much work and early market rising, i made it back. you will too, in time. life was not suopposed to be easy, but w/ tenacity it will be fruitful. be calm. be cool.. be happy.. its just money.. plenty of it .. just go get it./ legally...
oh ok. Don't get me wrong. I didn't invest it all in Goog. It took out my stop way before I wanted to sell. I invested in other companies, not traded, with good fundamentals. But they are all down. I could sell them all now at a 52 week low and cash out, but since I already have this paperloss, I am continuing to hold on to them since I am in cash with those stocks.
I never expected google to go to $900. In fact, I bought it only a few days ago at $441. Mt stop order came in at $427, a HUGE loss on the undisclosed shares I had. In fact, if I didnt sell, it would have doubled in losses.
I would like to know how those of you who trade in prodigious amounts can stomach losses of the magnitudes you speak. The most I have lost in one trade is 4k and the second is 2k. It seems that some of you must be making large bets on single holdings or are using significant leveraging techniques to loose so much so fast. I am not belittling or berating. I am just looking into thought processes as the events unfold to loose so much. I tend to place most funds into index vehicles and hold some brkb and a few financials, plus some trades every now and then, but I always go into a trade thinking how much I could loose if it goes wrong. I hope everything goes ok for those of you on the difficult end of the market, but I know I could not handle that much loss or risk to get the outsized returns you speak of. I did own GOOG at 215 but sold at 415 a few years ago when an article I read mentioned the EVA of GOOG vs. current value. I find the current market and situation intersting. Read Manias, Panics and Crashes and The Panic of 1907 for intersting parallels to today.
Thanks for the advice cod. You might also want to consider reading a book I think a remedial spelling book on the English language might be helpful. For example, look up the word "lose" and "losing."
I owned several pieces of real estate in the
'80s, '90s. By early 2001 I got tired of being
a landlord and the value was not going up. I
sold everything without making a decent profit
then the market took off a couple of years
later. Real estate value in San Francisco Bay
area went through the roof. I went into a deep
depression when I think of how I could have
easily make $5M If I had just hold on to those
properties, instead of living from paycheck to
paycheck every month.After several years,
I finally got over it, and as you know, everything
is coming full circle.Real estate values are
down, foreclosures are everywhere and now I
have a chance start all over because it will
go back up. Have faith. Depression will come
but you will get over it and start again.
Don't give up. You will get another
chance to make your money back.
I think most of us have lost big. I know I did in the past and to tell you the truth it $@)*%$ing sucks.. but... You learn a lot about yourself, the people around you and the things that are truly important. I learned the most important things in life (family, friends, education, knowledge, etc.) cannot be taken away from you. When you are at the bottom and you feel like you do not have a whole lot to loose you get very creative and strengthen your knowledge base.
Call me crazy but you will be an all around better person and investor for having experienced this. Things will come around eventually and chalk it up as a learning experience.
I loved reading the responses. I guess we have all been there to some degree or another. Those of you who say the most important things in life are family and friends and knowledge are soooo right. Financial losses and setbacks truly have us prioritize our lives, and also, we reexamine our actions and how we can hide things from others as well as from ourselves.