Posted on 02/08/2018 12:38:38 PM PST by mdittmar
Day trading is treacherous in a volatile market and the competition is fierce
Some people may feel compelled to take action when they see a volatile stock market, and for one 24-year-old Reddit user, Monday’s dramatic market correction was the time to buy on a dip.
Unfortunately, it backfired.
The Vancouver-based user, a financial analyst at a Canadian pharmacy who earns $50,000 a year, said he lost his entire savings ($10,000) from trying to buy the dip, and he wrote in his thread about using his credit card to trade CFDs (contract for differences), which are investments that mirror assets the trader doesn’t actually own. He initially funded his trading account with $4,000, but when he got margin called a few times (which means the broker demanded he put more money in to meet minimum requirements), he ended up investing $10,000.
(Excerpt) Read more at marketwatch.com ...
“If you want to gamble, go to Las Vegas”
Doh!
I think I spot the problem here.
Stock tip 101 - you can lose money as easily as you gain money. Be prepared for both.
The media scum watched the Dow like vultures and saw it going down a little. They posted exaggerating headlines fabricated to start a panic, and the markets went down much more after that.
Someone split face cards then doubled down...
DOH!
How could he go broke buying on the dip? Just hold onto the securities until the market goes back up. It’s the other financial shenanigans that ate him up.
I could live just fine for many months on 10 grand.
My tastes are simple.
Play stupid games...
Stock tip 097.
Never invest what you can’t afford to lose.
He would suck at gambling,always split eights and Aces,never split 4s.5s. or 10s,split everything else when the dealer shows a 6 or less.
Yes, what’s really going on?
So he invested money, including credit card money, and his investment is down $10,000 apparently. Well, he hasn’t actually “lost” unless he sells at that lower price. Hold on to the investment, and see if it goes up, longer term.
And hopefully this boy learned some good life lessons from this.
Two of the great pitfalls of day trading are trying to time the market and going for a big score. After years of inconsistent results, a friend of mine finally became successful at day trading by adopting the approach of successful bank robbers: hit the tellers only, so to speak, by going after only small gains; stay away from the vault, meaning the large risks of trying to hold even a winning position too long; and get in and out quick. Mastering that technique meant consistent small winning trades that provided little excitement or risk.
cash advances cost more to borrow too ha ha
This kid got beat bad,hopefully he learns.
Someone split face cards then doubled down...
DOH!
Fascinating subject. The person who mentored me said they lost $200K, can't remember which crash, then learned to trade smarter, more carefully, and how to short. Said they traded Merill Lynch all the way to the bottom. Then traded GE once a day only. Probably wouldn't be a good idea now.
Since then, I was advised to pick one company, know it inside and out, how it fluctuates during the day, when the MM's go to lunch (how do you tell that?!). If I had to make a living that way, I would, but I would not trade on borrowed money (credit card, margin, etc.).
I did what I set out to do, made a little money the first year, probably broke even after I filed my taxes. No I think I came out a little in the black but hardly worth all I put into it for almost a year.
It was a good experience. I had never owned a stock in my life before that but always wanted to try it when I saw friends making money (they usually traded long).
It is a form of gambling I'll concede, but you can play with the odds a little more in your favor if you know what you are doing. I used some basic charts which were a help and watched selected stocks in real time.
I usually played Kraft before it merged with Heinz. When I saw that I had plunked $21K down on one trade, I thought that was too risky and haven't traded anything since. I read up on how to short but don't fully undeerstand it. I don't understand options either. Or hedge funds. Don't want to pay someone else a commission now to invest my money for me now.
Market just closed. DOW down over 1000 points, didn't get the exact number. I wouldn't want to lose what that person did but it's not really that terrible compared to what could have happened.
Someone who wasn’t around during 2000 crash
“...Stock tip 101 - you can lose money as easily as you gain money. Be prepared for both....”
Exactly. I’ve been an investor for many years and have always kept that philosophy
in mind. It’s gonna close down probably well over 1000+ today. I will lose...again. It’s money that I don’t immediately need and it will turn back around eventually.
I never believed in the market being able to be “manipulated”, but one can’t help but wonder when one looks at it today in light of their Royal Highness and their Holy Anointed One now being exposed as “accomplices and participants” to this dossier BS. Deep State and billionaires libs were possibly called upon to distract from it anyway they can? Dunno. IF it’s “manipulated”, those involved need to be “drawn & quartered”, and their pieces dragged thru the streets for dogs and rats to feed on.
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