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I broke the rule and ended up with financial losses.

1. Buying the HYPE

#1 Emerging tech = speculative

#2 Past Performance Does Not Predict Future Result

2. Being STARSTRUCK

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GENE-HV stock price over time. Image source: yahoo.finance.com

“Never invest in things you don’t understand “ — Warren Buffet

“I can calculate the movement of the stars but not the madness of men” — Sir Isaac Newton


Final Words

3 COMMENTS

  1. Very beautifully explained! If we are able to work on the points suggested in this article we will definitely be in a better position. This is exactly what I realized from my trading experience.

  2. Dear Listy, great article! Yes, knowing yourself and keeping your emotions at bay in a disciplined matter are the most important traits for an investor and/ or a trader. If this doesn’t work, stock selection, funds, ETFs, whatever it may be, doesn’t guarantee success. Start by managing your own emotions and become a winner with investing! Cheers, Matt

  3. First, thanks for sharing about mistakes. It is too many articles about wannabe investors saying what you should do and if you follow their advise, you can only win.
    I would not say you lost a lot, because you learned a valuable lesson at the start of your investing path. it’s better back then instead of 20 years later when you probably will be managing $100k of your own money.
    I made a mistake shorting tesla last year and “lost” a lot, but gained in valuable life lessons (this is my article: https://medium.com/the-investors-handbook/how-i-made-my-largest-loss-by-shorting-tesla-stock-6720ed94c6b5).
    It shows also how this year so many stocks of companies without revenue got hyped so much, all with people that invest without understanding balance sheets not even the business. it is very unfortunate development, but on the other it offers opportunity for those willing to be brave and patient. šŸ˜‰

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