Lost 78% within 1 week of purchase of Russian equity fund. My after-thoughts.

Discussion in 'Trading' started by Market_Observer, Mar 8, 2022.

  1. Simple solution. Don't invest in economies not based on democracy.
     
    #41     Mar 12, 2022
    KGTrader4 likes this.
  2. If you buy an asset during a crisis, be prepared to lose 100% of your money. Most of the time you end up with Lehman brothers and lose 100% of your investment, and sometimes you end up with Bank of America (10x return).
     
    #42     Mar 14, 2022
  3. Lehman Bros was leveraged around 40-to-1.

    Let that sink in for a bit...
     
    #43     Mar 14, 2022
  4. Remember this phrase for your future trading…”don’t catch a falling knife!”
     
    #44     Mar 14, 2022
    Market_Observer likes this.
  5. newwurldmn

    newwurldmn

    but a lot of that leverage wasn’t real. It was matched derivatives that were settled daily. That’s why no counter party lost money on the bankruptcy. Bond holders of the corporate did but that was actually very small.
     
    #45     Mar 14, 2022
    Market_Observer likes this.
  6. This "don't catch falling knife" rule works most of the time but not all of the time. Those who took the risk to buy the U.S market during 1987 Black Monday crash would have done well.

    Nevertheless, for most people who aren't interested in participating in financial markets, it's better not to catch a falling knife.
     
    #46     Mar 15, 2022
  7. It's not just the falling knives... bull-traps can just as deadly. Don't forget the mother-of-all bulltraps during the financial crises where even Buffett thought things were ok again and he got plastered far, far from the bottom.
     
    #47     Mar 15, 2022
  8. The squidgame crypto fell something like 99.9999% in 5 minutes. I made up those numbers but it was close. I think it went from $1,250 to $0.0000005. Moreover, it was a scam.

    I've been looking for Russian ETFs that are still trading. I fully support your craziness in buying them and would have done the same if I envisioned the idea.
     
    #48     Mar 15, 2022
  9. instead of russian stonks....try the chinese stonks...some chinese stonks are popping more than 20% premarket today 3/15/22 since most has been down more than 80% from their all time high. i know u newbies like to buy cheap cheap cheap stonks....here is your opportunities!
     
    #49     Mar 16, 2022
  10. There are ETFs with partial exposure to Russia that have written down the value of any Russian stocks to zero, such as DEM and others. There could be some marginal upside since the stated NAV is lower than the economic reality. Probably not a ton of upside considering it's a small portion of the overall ETF, and the value of those Russian stocks could be actually zero.

    https://etfdb.com/country/russia/
     
    #50     Mar 16, 2022