Yeah makes no sense but people could really become idiots. Look at lotto winners who end up penniless after a few years.
That is due to the psychology of self sabotage. Subconsciously, people who feel they do not deserve such an income, find a way to lose it. No better place than trading.
I am watching 20/20 right now. Get used to these stories b/c they'll become a lot more common, unfortunately. Not just in the U.S., either. Maybe this will be a clarion call to all Americans to live within their means in future times, before they all 'blow up' and take the economy down with them.
Stephanie Karpman said she didn't want her husband to leave his trader job in the first place and wishes he would have put more in savings. People here should take this to heart. Leaving a good job, because you are convinced "you will make it in trading from home" is insane. He leaves a $750K job because he thought he would strike out on his own? He was insane from the start. The likelihood that a newbie trader will make a good living from trading at home in the long term, is probably well under 1% chance. Keep your day job!!!!!!
Bill Simmons a sports columnist for ESPN.com has written there are a lot of guys in the NBA making millions and millions of dollars a year, who are living paycheck to paycheck and I do not believe that is hyperbole. Ed McMahon was on Larry King and said that he went through a lot of money. When the economic crisis started to get people's attention back in September, a financial advisor was interviewed on CNBC and said that he had a client with a net worth in the millions cancel a birthday celebration at an expensive restaurant, and Mark Haines quipped, well that is why they got millions.
After reading a few of the posts, i wonder if you guys watched the same video....the guy formed a hedge fund, and to fund the business, and his lifestyle, he used his savings to cover it. He opened a business, took a shot, and came up short, I've got lot's of respect anyone who does that....It's the risk takers that make most of your lifestyles possible. Everyone who has a job working for someone else, owes that job to someone who took a risk, started a business, worked their ass off to make it work.
Same here. I have a lot of respect for this guy. He took a shot with his own Hedge Fund, and it didn't work out. We all took the same shot when we ventured into full time trading. Sure he had an extravagent lifestyle, but they guy also swallowed his pride and took a job delivering pizza to put food on the table. There's nothing to be ashamed of. Good for him, at least he's working a honest wage instead of just doing some ponzi scheme.
But with an MBA from UCLA, contacts, business experience, a closet full of stripey shirts, he's probably above average intelligence...the best he can do is delivering pizzas? Seems this guy just doesn't want to get a "real job."