Investing · Ramblings

Emotional Trading Cost Me $4 Million

That title is not a typo.

Over the last year, I made a lot of money trading and I lost a lot of money trading. I became another idiotic newbie trader because I ignored the most basic trading rules:

  • Don’t chase because you’re likely buying someone else’s bags.
  • Set stop losses because sentiment can turn on a dime. Stairs up and elevator down.
  • Don’t fall in love with a stock. This one is responsible for 90% of my losses. I ignored the market sentiment because my conviction in one company was crazy high. (Still is…which is crazy dumb. 🤦🏻‍♀️)

Being down $4M hurts. A lot. Still retired but I won’t be getting a Parisian pied-à-terre anytime soon.