Got to give it to you, you have nailed this. I'm looking at spy and UVXY, spy is continuing to rally after hours and so is UVXY. What do you make of this? Was this past two days just bear market rally?
Actually a good idea! I could be like the guy who kills people drunk driving and talks to kids about it.
Another great post! The main thing I lost is a chance at retirement at some point, but most folks in this world (China, India, etc) never have that to begin with. We're only human!
Great post! Yes humility can be a great thing. I wish it hadn't come at permanently ruining my financial future, but maybe if I can achieve some spiritual well-being, it will not be for nothing. It's amazing to me- it's all gone. And I know there are stories about people losing many, many multiples more money in the markets. Sadly many of those stories seem to end in suicide by those people. Really heartbreaking. I have an acquaintance who turned 500K or so into 2 million and then, between 2009 and 2011, lost the entire amount. Like me, he had a lot of trouble coming to terms with not just the losses but having the losses when it seems like everyone else is getting rich. There isn't anything to be said I suppose- just a terrible mistake that may haunt me forever. On the plus side after contemplating suicide my friend has made some peace with things.
4.5 years isn't bad! I will never retire now, period. But that's OK. There are people born every day into slums that never have a fair shot at life, so I am indeed lucky just to have a roofs over my head! But the money is gone forever.
The only way the earnings report could have been better is if I had shorted the stock after I took the loss. lol! Great job management, great earnings!
Thanks, and no offense taken. I'm not a religious man but prayer might help now. It's my own fault in addition to being short UVXY I shorted calls and those really exploded which is why the account zeroed out. You know I guess if it had gone the other way and UVXY continued higher I could've owed them thousands of dollars. I have enough savings for a month and I think my old job will take me back.
#$%$ are you on about? If I were going to lie, I'd make it a flattering lie. Like I'm proud of losing 500K on a scam oil stock and a stupid bet on UVXY short.
Had about 100K to work with. Turned it into 500K with some pretty good moves- a modest amount for most here but it was big for me. Caught the falling knife on PGN, kept averaging down, it took over 80% of my capital. Then this week went big leveraged short UVXY and my broker closed me out today when my account balance basically hit 0. A few hours later it would have been back to 60 or 70K. That's the awful sickness of using leverage. I don't know what's worse, losing all the money period or losing all the money during the biggest bull market ever. Funny thing is I know a lot of people who have lost big this past year on individual stocks like GMCR and oil stocks. So I guess I'm glad it's not just me, but that won't take the shame away.
Now the trick is how do I train myself not to follow the market anymore so in a few years when the Dow is 30K I won't feel even sicker. Don't have the courage to off myself, or the desire to do that to my family.
lol are you kidding me if it weren't for the guilt of what it would do to my family I would kill myself.
100% loss of capital for me- I know it has happened to better, smarter men but still pretty painful.
Thanks- it's not 62K anymore, but 0. For now. As I lost it all on UVXY short with leverage, only to see UVXY get hammered right back down after broker forced liquidation.
I'm happy for you guys- PGN is back close to where I sold. Of course I went and made a crazy leveraged bet on UVXY short and lost the rest. That's right 100% loss of capital. if I had held PGN today rest assured it would never have gone up. I don't think I have the courage, if courage is even the right word, to kill myself but it certainly seems to be the way to approach a situation where you go from 100K to 500K to 0.
I was short UVXY, not long. I got forced out by my broker from too much leverage so I couldn't ride it back down.
Why would I brag about losing 500K? Doesn't compute. Just wondering how people would deal with that. Some people have told me it's only money, they don't care, others have said they would commit suicide.
Thanks- very informative, too late for me since my broker forced me out at high of day- before a 10% drop! I am literally tapped out- no money at all at this point, got to work to rebuild. It sounds like you've got a really impressive system, that works well.
What are the mechanics of the calls? If you're short 10,000 UVXY shares, which calls do you buy, what strike and how many contracts?
If I can build something back up I hope to return to the game and not repeat my prior mistakes. Like I said, I guess I should have been playing puts but they always looked too expensive to me- you had to go very close in time, with not much time to expiration to get any kind of reasonable price and that seemed too much like gambling to me (ha! I ended up being the worst gambler of all!).
I do think these products are a fascinating study- because they really are guaranteed to go down over time if you can hold on, but so many people apparently not just me have been really hurt by them. It's hard not to get greedy, then you see in 2011 VXX went up so much, it could be really dangerous if we got in a bad market again.
How did you know this wasn't a correction? I ate a huge loss on UVXY with big leverage, mainly because I didn't have the stomach to hold on today. I remembered all that stuff about how VXX can run huge, 200% or more in a correction- so how did everyone know this wasn't one (looks so obvious now)? Thanks.
Cannot even put the pain into words but it is intense and not fleeting. Seriously- how did you all know this wasn't a stock market correction? It seems so obvious now.
Even worse the half million was my whole account- unbelievable is all I can say. I guess I have the sick gambler's mentality and it bit me in the rear end. I tried to make my losses back far too quickly which is how I ended up taking on leverage with this. Anyone can look at a long term chart and see it's going down if you have enough time- but even in 2011, I heard stories about people who thought they were somewhat conservative and still lost it all shorting the VIX.