I'll give you mine and hopefully others' stories will follow and make me feel better about myself.
I am in college and last year got enough scholarships to fully fund my year. However I was ignorant and still took out $6000 in loans. With the loans I purchased out of the money call options on CLF and a few months later they were worth about $9500. If you look up CLF you will see that fortune did not favor me. I purchased the out of the money $42 calls when CLF was around $23 and the calls appreciated to about $9500 when CLF went up to $29. Well CLF tanked and is now at about $5 a share.
In other words I lost the entire 6k and now I get to worry about those loans. The expirations ranged from 6 months to 2 years so I depressingly still have a few in my account at OptionsExpress and they worth a grand total of $4.22 .
Worse yet, this year I got exactly enough scholarship money to fully cover me for the year perfectly once again. I wasn't dumb enough to take out more loans, but I was dumb enough to take about $4,000 and put it into a personalized gold mining etf on motifinvesting.com . The gold price has declined since September and one of the companies that was 20% of the portfolio declared bankruptcy last week so it's down 95% and trading at $0.11 on the pink sheets. Overall that $4000 is now worth just under $1800, and I'm running out of money now (remember when I said I got the perfect amount to fund me for the year though May).
So my investing record is absolutely abysmal. Worse yet, I am in an investing group on campus that manages real money for the school and I have actually done good work for them and made some good investments there. I am just too embarrassed to talk about my personal investing life with the others in the group.
Its just when I do it for myself I am overly risky and have been way too much in a gambler's mindset. If the options had worked out they would have been worth nearly $70,000 (based on ym fair value calculation of $58 per share of CLF if Iron ore has averaged $115 over the next five years) and the gold mining basket of stocks could have easily doubled if gold went to $1400 versus the $1150 it's trading at now.
Never invest money you don't have, and don't invest money you will need to live on or may need to live on within the next year. These are the primary lessons I have learned, but they are sucky to experience!
On a side note if you want to join motif investing please use my referral link so we can both get $100. It's actually an incredible concept of a site and you don't have to make dumb investments like me. Basically you can create your own basket of stocks or etfs (up to 30 different ones) and weight it however you want, and then buy and sell then entire basket for $9.95 commission instead of buying each stock individually. You can also rebalance the weightings for $9.95.
http://ift.tt/1HPvr4S..
Back to the stories though, please tell me yours!
I am in college and last year got enough scholarships to fully fund my year. However I was ignorant and still took out $6000 in loans. With the loans I purchased out of the money call options on CLF and a few months later they were worth about $9500. If you look up CLF you will see that fortune did not favor me. I purchased the out of the money $42 calls when CLF was around $23 and the calls appreciated to about $9500 when CLF went up to $29. Well CLF tanked and is now at about $5 a share.
In other words I lost the entire 6k and now I get to worry about those loans. The expirations ranged from 6 months to 2 years so I depressingly still have a few in my account at OptionsExpress and they worth a grand total of $4.22 .
Worse yet, this year I got exactly enough scholarship money to fully cover me for the year perfectly once again. I wasn't dumb enough to take out more loans, but I was dumb enough to take about $4,000 and put it into a personalized gold mining etf on motifinvesting.com . The gold price has declined since September and one of the companies that was 20% of the portfolio declared bankruptcy last week so it's down 95% and trading at $0.11 on the pink sheets. Overall that $4000 is now worth just under $1800, and I'm running out of money now (remember when I said I got the perfect amount to fund me for the year though May).
So my investing record is absolutely abysmal. Worse yet, I am in an investing group on campus that manages real money for the school and I have actually done good work for them and made some good investments there. I am just too embarrassed to talk about my personal investing life with the others in the group.
Its just when I do it for myself I am overly risky and have been way too much in a gambler's mindset. If the options had worked out they would have been worth nearly $70,000 (based on ym fair value calculation of $58 per share of CLF if Iron ore has averaged $115 over the next five years) and the gold mining basket of stocks could have easily doubled if gold went to $1400 versus the $1150 it's trading at now.
Never invest money you don't have, and don't invest money you will need to live on or may need to live on within the next year. These are the primary lessons I have learned, but they are sucky to experience!
On a side note if you want to join motif investing please use my referral link so we can both get $100. It's actually an incredible concept of a site and you don't have to make dumb investments like me. Basically you can create your own basket of stocks or etfs (up to 30 different ones) and weight it however you want, and then buy and sell then entire basket for $9.95 commission instead of buying each stock individually. You can also rebalance the weightings for $9.95.
http://ift.tt/1HPvr4S..
Back to the stories though, please tell me yours!
What is the worst investment you have ever made?
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