I haven't really ever considered my self a moron until recent events that took place in my life..
I would like to start off my story with the very first investment I made back in October..that was AIG..I was thinking that sooner or later the company will put things together..well you know what I thought along with many other "new" investors..My friend at that time gave me $10 k to invest on his behalf in AIG as well. Well, we went all in, and it's not hard to guess that it didn't take long for us to get wiped out, almost completely. Well, it took less than 3 months to get wiped out the first time. I sold ALL AIG shares, took 90% loss and moved to FAZ..Thinking that I can regain my losses, I maxed out my credit cards and went all in..It took another 2 months to get wiped out again, to lose all the money. Now, then I took a loan from my girlfriend thinking that it's a last time shot and started buying financials when they peaked , immediately after, banks started tanking..I was so F UCKING tired of that, and decided to switch to biotech, play with stocks that are pending FDA approvals.. Immediately after that , correction in financials was over and garbage like AIG started rising through the roof, leaving me exposed to my liability for AIG shares (that my friend thinks I still have).On top of that I got burned with GERN and no income or loss with another biotech - SPPI that is pending 2 approvals..Now, if SPPI doesn't get approved, I am facing third wipe out in 8 months leaving me with a huge debt, huge liability for AIG shares (if they keep on rising),huge debt to my girlfriend, severe depression and a gun that is on my table..The gun is already loaded, and I am thinking with a relieve that soon I can end it all, and that thought is actually makes me feel good.
Thanks for reading to crap, I will you all well.
Dude, I've lost half our money but finally got out. Now am determined not to lose again, must have stops and babysit,like the other guy said. I was desperate at first when I lost so much, but have been out of the market for a while and feel better. Money is definitely not worth ending your life over, and it's not just your life, you'd be ruining all your loved ones lives as well. I suggest you stay out of the market-it truly is gambling. The guy is right, go now and either sell the gun or throw it responsibly away. Love you Dude. And by the way, the sooner you confess to your loved ones, the sooner you'll feel better. Learn from your mistakes-that's all we can do.
You are not worse off than so many others who have no jobs, lost their homes or their life savings in this market, and got out with nothign to show. Look at the peopl who have lost their lif savings to Madoff's crooked ways. Or the guy worth $100 million who is now only worth $4million and selling everything, usually folks like that kill themselves. No. What is really bothering u psychologically is the pride factor and the fact that you bet wrong. I know because I have been there. I lost $1.2 million back in 2001, virtually evrything I had was in the stock, then lost my job, but life turned around. Sure, I felt like crap, sometimes wished I wasn't born, but the beauty of the market and life is that it is never a str8 lin. Those that are up one day are down the next (even Bob Rubin, with all his money and political background lives in ignominy now), and those that are down today manage to get it together. Today I am worth a lot more than what I lost in 2001, have a wife and a few kids. If u get out of the market and wait, you will find other opportunities, small ones to rebuild your net worth. It is not that difficult. There is always a trade to be made on the long or short side. My suggestion, get out, lick your wounds and wait until next year as u rebuild your net worth with your job. Then take position in long and short ETFs and see which one performs best. I suspect that by next February, we will begin to head south unfortunately, and if u go into SKF instead of FAZ, you will lose less and still make money (but hedge with XLF)
Alot of first timers in the market lose all there cash the first go around. I did back in 1995. At that time you had to call on the phone to a broker each time to place a trade wondering what he's thinking when he seeing my account drying up.
Since than I've made alot of money on the market but still find myself making mistakes. Some are the same ones that have raped me before. Just set a stop loss! About six weeks ago I was set to scalp SKF for .25 cents and had only a mere .10 cent to go when I decided to head to Home Depot. Came home and it never hit me and was down over 2.00 bucks, than gapped down another 2 bucks and so on. Im down thousands now.
Rules never to break:
1. Babysit your money
2. Always be prepared to take a loss
3. Never average down
4. Don't get greedy, take profit when you can.
Write those on a post it and follow them.
Now, I know were doing Monday morning quarterbacking here but we need to change our outlook here. Were down but not out! I don't mean were going to recover our money. We've all been down before to some degree but have the ability to change course and rise from the crap that's thrown our way.
You think your life is bad? Look at these wounded and maimed war vets. They don't hardly get squat. Take a drive and look around. By my house in Anaheim/CA I can't believe how many homeless are pushing shopping carts around. Even sleeping in their cars on my street.
I know were just disgusted and venting here.
Just nobody do anything stupid over money.
We don't got it that bad.
Good Luck To Everyone!
I can't believe that it's a true story. It probably is. Putting a gun in your head won't solve any problem but we would loss a human being. Sell everthing you have, don't get in the stock market ever again. This is not for kids.
This story is not unusual, and is exactly why the big investment firms always profit. We are where that money comes from.
You lost some battles. You only lose the war when you are taken totally out of the game. Don't do that. Fight another day.
I think your best bet is to send your friend and your girlfriend the link to this post, and then spend the weekend with the explanations, the arguments, and the tears.
The old saying "time heals all wounds" is absolutely true. Hell.. even Bush is healing, and that guy screwed up in the trillions against the entire country.
I'm sorry to hear about your terrible situation. It's not as bad as you think though. I have done a lot of what you've done and am doing great today. You investing problem is that you are investing in securities that will either double, triple, or go down to nothing in a hurry. Not all securities are like that. You should consider buying more "normal" companies like Apple, RIMM, or the like. The AIG, FRE, FAZ, are all get rich or get broke quick securities.
May we ask how old you are and how much you owe in total?
sorry to hear your misfortune. try trading on paper first before actually jumping in with the big boys. you can test your strategies and you can also get a feel for what the stock is doing.
FAZ/FAS are truly for professional traders and not for novice investors. the prospectus is very clear about how it operates.
if you want something that should be solid. I like BMY and GE. BMY has lots of cash, pays good dividend, low p/e and is building their future pipeline.
i've had BMY since the 18's and have been very happy with it. it aquired MEDX recently which sets up its future cancer drug pipeline
just file for bankruptcy and get rid of your credit card debts. A lot of people have too much debt and u can start fresh, it is only money. back in 1999, i maxed out my credit cards and got wiped out and did a $250,000 bankruptcy with house and credit cards. You took a risk and it did not turn out like u hoped, credit card companies have nothing to gain from u. I started over with my 401k/Ira and i live better than 80% of americans today