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Retirementdough,

Thanks for disagreeing. But I'll double-down. That $200k loss was 15% of AUM. Do the math. That implies $1.33 million was being put at risk by someone who had no idea what she was doing. That's reckless and irresponsible.

Yeah, them just starting out on their investing journeys often have to put a larger percentage of their capital at risk than they will have to later as assets grow. That certainly was my case when I was trying to break into the junk bond market. Heck, I was even trading on margin, which is a real No-no. But I never, ever bet more on an issuer than I couldn't recover from with a couple weeks of work, and I never, ever, bet the whole of my capital on just one asset-class as that poster did, and I stayed on top of my exposures. She didn't, and it cost her $200k that she'll probably never be able to recover.

There's a trader's proverb that's apropos here. " If you don't who who you are, the stock market is an expensive place to try to find out."

By and large, TMF and its follower hate 'traders', and especially short-sellers. But those are the people that "investors' need to learn from, particularly how they manage risk. We can't depend on the Fed/Treasury cartel to keep propping up stock prices for us. We've gotta trade the here and now, and if we blow up an account, we're outta the game.

My prediction is this. The person she most admires and wants to emulate was someone who wildcatted TSLA with an all-in bet and got lucky. Read what Talib says about such idiots. Rarely do they survive more than one market cycle, much less a lifetime of investing/trading.

Nearly every stock TMF recommends Ben Graham would call 'speculative'. And how much of one's portfolio does he suggest should be allocated to such gambling? Zero to 5%, max. The poster was way over his recommended limit. Graham makes a further distinction that is worth paying attention to, the diff between 'Defensive' investors and their activities and reasonably expected gain and those of 'Enterprising' ones. Also, he argues the two mind sets and methods cannot be comingled. The poster failed on both accounts. She took a hands-off, laid-back, hope-for-the best approach to a basket of assets that needed very active management. That's just plainly irresponsible. If she wanted to let the market do the work, she should have indexed and been done it (as Buffet, Bogle, Mandelbrot, etc. argue).

So, failing to do her homework, she trashed her account, but still is none the wiser, which is shame, because --by and large-- women are far better money-mangers than men, because they aren't as driven by hormones to take stupid risks.

Arindam
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