I haven't heard of any actual investors with losses of 99% . . . only theoretical ones.
I have heard of some TRADERS who lost everything. In fact, right here on SI there were a number of short-sellers who were on excessive margin and not only lost everything, but had to sell their houses to pay back margin calls. But by and large, the reports I've seen have either been, "I'm down 30% on the year" or "I'm up 60% on the year". . . .some middle ground that was not extreme and not particularly interesting. {then again, I don't read Yahoo, Motley Fool, Clearstation, Raging Bull or CNBC.]
I did read an article which said that investors are now returning to message boards to find someone to blame for their losses. I have not personally seen this happen, but can certainly imagine it. Overall, Individual Investor / Traders get a worse rap than they deserve, in my opinion. Nearly all the traders [swing, day and positions] I've heard from are still doing fine. . . and were not seriously harmed by the tech decline. . . or have already recovered significantly. But we rarely hear or read about the average traders in the media. They are just too boring. People want to hear about great loss and great wins. . . speaking of which. . .
There is a new book I talk about in the Principles of DayTrading Conference on the DayRaiders board on Insighters. . . called "The Guts and Glory of Day Trading". It features stories of about 10 actual traders who either lost big or won big over the past few years. Our own Bob Martin [who will soon be opening a board on Insighters on Options Trading], was featured as one of the biggest winners over the past few years.
And as for buying into the media hype, it isn't the experienced investor/traders who I worry about. . . it is the newbies. We need a first line of defense to educate the newbies on the wicked ways of the market. The ProfitOften.com website has been designed for this purpose [and is totally free], but needs more cooperation by those who are tired of seeing newbie investor/traders exploited for personal gain. [Let me know if you have an interest here]
The names "Individual Investor", "Retail Investor" or "DayTrader" are too often thrown around in a mocking manner. . . .as though these are "the suckers of the market". And that could actually be a nice cover while we learn new stealthy ways to sting the markets for sharp gains.
Rande Is |
