asap wrote: "i am inclined to believe trading is about refraining from trading rather then trading itself." Truth indeed!
I hope he read Mark Cook; When Cook started out (as you can read in Jack Schwager's excellent investing book Stock Market Wizards) he ran into trouble, and quickly⦠"Mom, I lost $100,000 of your money." "How much did YOU lose Mark?" "I lost half a million dollars." "But you don't have half a million dollars." "I know, Mom." "Besides losing all this money, what else is wrong?" "That's it, Mom." "Oh is that all! I thought you had cancer⦠How long until you make it back?"
He had the Icarus Complex, went for the big money without sufficient knowledge and skill to protect himself from the potential downside of the equation. Now he's facing (at leat) 10 years of hard labor to payback what he ows, and his parents (literally) may not live to see the day that happens. Sad but all to real story of what happnes when you get an asset bubble and the new guy comes along and thinks there's something new under the sun. There isn't. Jimmy Jam
One HUGE difference between people like Soros and this guy is that he's been in the market for less than one year! At least guys like Soros take more CALCULATED risks. It sounded to me like this guy was just riding a bull market without much knowledge or techniques and got burned big time on the market pull-back.
What I never really understood is that, why is it harder to make money in a bear market than a bull market?..Is it because: 1. People have a natural tendency to go long? 2. The belief by the public that one cannot make $ in a bear mkt if their stocks are falling because they dont understand the concept of shorting. 3. Lack of volume or market participants 4. other (if so, what?) thanks cm
That's too bad. A black swan crushed him. He was Fooled By Randomness. A stop was all he needed. So very sadly simple.
One of the functions of free market is removal of money from weak hands by strong hands. It's healthy for society as a whole.