No. of Recommendations: 8
A few short months ago(JAN) I was sitting pretty. I had no credit card dept. I only had a car payment and rent. I owned: 200 sh INTC, 100 sh DELL, 200 sh DIS, 100 SH HDI, 100 sh EGRP, 100 sh CCRD. I was about to get engaged. The ring I picked out cost $7500. I had not saved for it and I did not want to wait so I bought it on 90 days same as cash. I had just completed one short term margin trade and made just over $1000. I thought to myself, "if I do this six more times I'll have the ring paid for". Well thanks to some volatility in LU and WCOM I easily made the rest of the money I needed to pay for the ring. But I did it with about 45 days before I had to mail the check to pay off the ring. I kept on trading. In 3 months I made $15K. Free money. Until Mar/Apr when VRTY, XCAR, and PMTC all tanked. I was margined on all three. Not only did I lose everything but I never paid off the credit debt. Now I'm struggling to save money and pay down the dept. With luck you can beat the market in the short term. I thought I had it beat. I thought I was smarter than all the conservative people saying "don't buy stock you can't afford". I will never trade on margin again.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.