Quote from peilthetraveler:
Kind of makes you sick when some dumbass like 50 cent who likely knows diddly squat about economics, the stock market, or even what a ticker symbol is, can make this kind of money in stocks in 1 day.
My first trade (2008):
"Hmmm, XYZ went down 5% today. XYZ was a stock my husband bought in my IRA that was there for years before we cashed out in early January. Let's see why it went down. Hmmm, no reason. If it went down so much, it should go up again. I think I want to buy some. Let's see, how do I buy a stock..." I figure out how to buy some.
A few days later: "Wow, I have almost $1000 profit on that! I'm gonna sell it."
My second trade (a short time later):
"Hmmm, ABC went down 8% today. I like ABC, they seem like a really good company. Let's see why it went down. Hmmm, that's a silly reason. If it went down so much, it should go up again. I think I want to buy some." I buy some.
A few days later: "Wow, I have over $1000 profit on that! I'm gonna sell it."
My third trade:
"Wow, look at that JKL stock going higher and higher every day. I will wait till it drops 8% or more and buy some."
The stock doesn't drop. One morning it's way higher. I read a headline: "JKL Raises Earnings Guidance by 20%." The market opens and it's going higher and higher. Frantically, I place a market order for 10,000 shares and get filled at an average price 2% above the bid/ask when I hit "buy". "Darn, I should've used a limit order like my husband always told me to!"
A day or so later: "Wow, it's up over 10%! I have almost $8000 profit on that! I'm gonna sell it."
Fast forward to a year later, with "hard-earned" trading experience behind me:
"Look at that POS stock making 52-week highs again over some temporary fad. I'm gonna short it again. Don't need a stop loss, because this POS always goes back down!"
Next day: "Why's this POS going higher? I'm gonna short more!"
Two weeks later: "I can't believe this POS has run 30% from my average price! It's really gonna tank now and all those dumbasses who know diddly squat are gonna get killed! Just to be safe I'll put a stop loss up there at a ridiculous price that even the biggest idiots won't buy at."
Days later, head down and kicking at rocks: "I can't believe I got stopped out of that POS for a $6500 loss."
Fast forward to last month:
"Hmmm...thestreet.com newsletter is pumping these biotech penny stocks. Let me see...ahhh, ABCRX seems like a good company, and oh, that XYZRX seems like a good one, too and it once traded 2000% higher than they are now. I'm gonna buy those!"
Next day I buy each of them at the high of the day which also happens to be new recent highs.
The present:
"Wow, my ARX is up 23% and my ZRX is up 115%. I think I'll buy more soon."
Moral of this story:
DUMBASS TRADERS RULE!
