Lesson # 1 never gamble with your parents saving Lessson # 2 never play to big to finish u Lesosn # short are better then long
I agree, but I think that's stupid. Someone's a genius because they placed their WHOLE life savings in one bet and it went up?. It goes against the number one rule of trading...Risk management. cm
Really sad that his parents get dragged into it. He's a young guy so if he went bust, he'll recover. But taking down your parents? Well I guess we know where his earnings for the next 5-10 years will be going.
He's a college student who probably wont graduate now, $300,000 is going to take alot longer than 5-10 years. In fact, it took his dad his entire life to accumulate that kind of money.
The absolutely worst thing that can happen to you when you first start trading is a streak of big wins. Your ego inflates, you think youre a genius and cant lose. What you dont understand is, that it was pure luck. Youre a guy who just happened to end up on the end of the bell curve. Now youre gambling with huge positions, and you actually have no idea what you are doing. Dumb money like this is exactly what the market needs to make trading easier for real traders. If you get enough people like this in the market, its NAZ 1996-2000 all over again, easy money. The pattern day trader rule came about because of people exactly like this, wiping themselves out when they cant afford it. Ironically, it would not have saved this guy since he had well over 25K from borrowing from his parents. Well, at least it would have slowed down his trading rate after he lost 275,000 of the 300,000
Engineering students are well paid. In the states, they are some of the highest paid. Even if he doesn't graduate, he should be able to find work. Being just out of school, he won't be making a great deal initially but if he applies himself, I think 10 years is reasonable.