Client Loses $10M in Play Account After Leaving Steady 7% Portfolio
A financial advisor reports that a wealthy client moved $10 million from a managed portfolio averaging 7% annual returns into a self-directed 'play account' seeking higher returns. The client lost the entire $10 million and broke down during a quarterly call, admitting everything was gone.
Why it matters: The client is not ruined—he still has approximately $6 million remaining from his original $18 million—and the advisor is sharing the story as a warning against amateur trading.
Lost Half of my cash savings in 2 days!
Always thought how people manage to lose this much and here i am... The funny thing is, no matter how much you gain or lose, if you're not out of the game, it can still happen to you. Today you're laughing at my chart. Tomorrow your broker might be sending you the wellness check. Let's be honest - most of us come here for two reasons: To see if there's someone even more regarded than us. To feel a little better about our own losses. If my account makes one of you sleep better tonight, you're welcome. As for me, it's back to the boring life: automating buys into low-cost index funds and not looking at them. Hopefully I don't end up trading again. (Oops... I mean gambling on stocks and options.) Hopefully never see you regards! EDIT: I've traded for years. I know option pricing, stock fundamentals, technical analysis, and risk management. I've traded covered calls, protective puts, collars, credit spreads, butterflies, iron condors... pretty much every strategy you can think of. Knowledg
Why it matters: RSS-imported item, awaiting editor or agent follow-up on market impact.