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What happen if you cannot pay your contra loss?
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cheongwee
Elite |
01-Aug-2007 21:57
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Sooner or Later...not if but when....2 global trend that will cause the DOW to go thro a 1929 scenerio.. 1)the weak dollars..sooner it will break down thro 80 and 78 and then freefall..this is very real..the US debt is to the tune of 50 trillions..take them 15 yrs to pay back..alot of middle countries already divert form the dollar..some also do not accept US$ for their oil....in fact current oil px increase is partly due to the weaken dollars....oil is px in US$.. 2)a spike in inflation...worldwide esp. China..is brewing hot...look at the px of their daily necessities..like pork...even simple thing like instant noodle is very high..do you know china money supply increase at a rate of 20%annually??US 14%..M3 no report..could be higher!! Now Bernanke is stuck in between...he cannot increase rate..if he do ..housing is done ...if he dont the dollar weaken farther...so currently no increase is the best option for him...the economy go down slower and hope for a miracle.. If just one of the above give way will set back the world by some 10 to 15 yrs of recession...this is very real..never trust all figure release by the respective authority..all those figure are manipulated for their own selfish political ends until too late like in the case of Enron. In fact,the most dishonest ppl are the highly educated few who hold some top position in the country to cheat on their own citizen hard earned money by printing more fiat curreny thus reducing the purchasing power of that currency..it is not different from stealing..any view welcome i am open..not easily disture and anger ...no worry..i tok to anyone.. |
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rogue_trader
Master |
01-Aug-2007 21:34
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Hi Ben, I believe you are not alone with your current situation. And I also returned almost 2X my contra gains in this recent saga. But, (although it is very easy to say than to be done) just don't ever "lose" yourself. Be disciplined and determined in your course of life, coupled with handful of patience, experience and knowledge. I had witnessed how a remisier lost abt $300k years back, was made a bankrupt, and now a discharged and happier person. Although this remisier does not own any fancyful cars now, but at least he is a proud owner of a fully-paid 5-room HDB flat (together with the help of his wonderful wife). And yes, his wife authorised him to trade her account and he only buy and keep strategy, and in a very small amount like $5k per trade and max 2 trades. If he wanted to trade again, he must "cleared" one or both the "$5k" trades. So meaning he only got $10k in the market every now and then and he had made decent kopi $$. Sincerely wishing you, your family, your friends and your loved ones the epitome of happiness, best health & success. |
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cyjjerry85
Elite |
01-Aug-2007 21:16
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Once Beaten, Twice Shy |
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sohguanh
Veteran |
01-Aug-2007 21:04
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my philosophy in stock trading is all losses should be borned by me alone. i will NEVER involve my spouse or parents to cover for my loss. one should take responsibility for one's action and not hope for other ppl to bail one out when one land into trouble. only through this stringent punishment can one learn his/her own mistake else once bull comes again the previous lesson is forgotten already. |
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Livermore
Master |
01-Aug-2007 20:54
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Hi Ben, You can make a comeback. But don't be in hurry to do so. Be patient. One step at a time. Sometimes in a hurry to recover one's loss, one may find himself deeper into the hole... |
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tuntan8888
Senior |
01-Aug-2007 20:43
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Hi Bentan79, time will heal all wounds. $30k is no peanuts but treat it as mere equivalent to just half the cost of a new japanese car. So if u save on not buying a car, u will recover in no time. Hope this makes u feel better.... |
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fruitty
Senior |
01-Aug-2007 20:31
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Ben, i'm same age as you. can see how disheartening it'll be for my parents if i get into debts because of the stock market and have to get them involved either by letting them dig into their savings to help me or worse still, borrow from others. please learn your lesson. |
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fruitty
Senior |
01-Aug-2007 20:27
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hi ben, your parents are great. don't ever disappoint the elderly again. we are all old enough to take responsibilities for our own actions. the elderly need money for themselves too. just be very thrifty to clear up your debts with them. we have to bear the consequences of our own doings. maybe one of the best things we can do is not to gamble with money we don't have and don't hope for anyone to bail us out if we get into trouble. |
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jng1103
Senior |
01-Aug-2007 20:01
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BenTan, you are not alone. I'm in your shoes now though mine was only paper lost. Did contra for 30k at the wrong time and decided not to force sell. Fortunately, my wife borrowed me most of the sum to storm through this "tsunami". I thought of selling them and ran up with 3-4k "REAL" lost but decided to keep those stocks and ride through the "crisis". I'm not sure if this is a smart decision but I have faith in the stocks on hands. Any comments? Wish my luck. |
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jkbk007
Senior |
01-Aug-2007 18:38
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Ben, I too respect you for your courage and ability to recognise where you have gone wrong. There is an irony that is occuring here as it seems that the force selling is pretty mild if you look at what is happening right now. If it occurred when the market crash 10-20% in one day, the losses will be a lot bigger. |
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elfinchilde
Elite |
01-Aug-2007 17:51
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hey bentan, as fairygal and snoothie say, respects to you! you have my admiration; not many will dare to admit their mistakes so openly and ask for help the way you did. That shows the good side of your character. So you're definitely NOT a useless person: if you were, you'd not have dared to own up to your mistakes, isn't it? So yup! take heart! at the very least, you've sold off all your counters already (?) and avoided today's crash. that's something good already. And yup! i'm very sure you'll stand up again, so take heart. :) do take kilroy's suggestions on reading abt money management etc. i'm still very much learning myself, from all the people here and books and all. knowledge is always good. :) |
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cheongwee
Elite |
01-Aug-2007 16:49
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bentan79..dont know u are geniune..if it is..sorry.to heard this..was in the same position in 97..for those who lose nothing... tok is easy,but put in this position it drive u crazy..but dont worry..when rain stop the sun shine again..hope you settle fast and up and running again One lesson...very very important...dont be greedy and or fall in love with stock ...sell as u go...take profit when hit your target..is the safest...look i sold capitaland at 450...so what it go up to 8..it hit my px..at that point of time...remember this less profit sleep better...of course a little boring..but play safe the best.'... Today...fear rule...market is play more on fear than greed |
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Fairygal
Veteran |
01-Aug-2007 16:46
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First you ask yourself what group of people do you want to help. Children , The Aged, or many other categories. For e.g. Children, you have Children Cancer Foundation, Singapore Children Society........google the address and give them a call. Based on your own schedule and their need and areas for help, I am sure you can fit in somewhere. Those who cannot commit too much time on a long term basis, you can always help accordingly to your free time. |
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maxliukt
Member |
01-Aug-2007 16:38
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Fairygal, where to volunteer? thanks |
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Fairygal
Veteran |
01-Aug-2007 16:31
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Bentan, dun lose your self esteem. Dun lose your self-confidence. There are many many ways to enjoy life and spend your time. Walking by the beach, parks are all free. Spending time with your family and loved ones, spending time to volunteer is another, plus it is meaningful. Most importantly, think positive. Health is more important than wealth! |
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snoothie
Member |
01-Aug-2007 14:14
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Bentan79, Respects!! Not many people can bite the bullet like you. Suggest you read "the networth workout" can be borrowed from library...it'll give you some idea about cashflow management...not exactly a solution to your situation but i think cashflow planning is very important to you now. |
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fortunegal
Senior |
01-Aug-2007 13:36
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bentan, sorry to hear about it. hope you can overcome this tough period soon. it is not easy to find someone to admit the mistakes esp in a forum like this and i find you brave enough to do it. i hope you can settle the debts soon and stand up again soon. this type of stories is really happening again and again. my brother did the same thing 15yrs ago n my dad help him to pay off the debts, cant deny my dad is so heartache to give away the money too. it is good that you bring awareness to others in the forum. |
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bentan79
Member |
01-Aug-2007 13:12
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Dear all, Thank you once again. It is really an expensive lesson. Currently my parents is helping me settle the debt. However, how often can they help me? I had disgraced them as they had to borrow cash to settle the debt for me. My punishment: every month of my salary $1000 will go to repay them. This is better than paying bank/broker house interest. I am left with a mere few houdreds. This also mean for next 3 yrs, I will not be able to do thing I enjoy eg go out to movie, drink with friends etc Lucky for me, I do not drink/smoke. I am not too sure if I will go to stock investment for the next few year. This is a lesson to all who wanted to play contra and think you can outsmart or follow the BB. (1)YOU NEVER WIN. Do your maths 1st. (2) I actually won 12k and loss it on the same day . Calculate your win and if enough STOP!!!! (3)BB follow trend closely. You do not know what they are thinking. Even if price drop, they can hold and force the contra player out as they have the cash. Furthermore their is average price/share. I am now like a useless person and my family member look down on me. However, this is a good turning point of my life. I will look up towards making myself stand up again. All the best to those still in contra trade......... PS:For investor, now is best time to start collecting since price is going down for all stocks. |
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jm2212
Senior |
01-Aug-2007 12:48
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is easy to say than done. this is a typical gambler behaviour. u win, u bet more as u believe u r in luck now. u loss, u also bet more as u think that u can't be unlucky all the times. u start with 10 lots, 50 lots, then x00 lots. same here, i made a very handsome profit in last year and in the end probably back to square now. self-control and disclipine is never easy. |
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Fairygal
Veteran |
01-Aug-2007 10:44
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It's also about knowing yourself and self-control. If you have let go of your holdings, but the price shot up shortly after, dun look back and sigh. Cutting loss is one way, but not everyone will practice because of greed. Dun commit further if you are already having paper loss. You know your own financial status best, so practice self-constraint, not too great a risk taking. Whatever the situation, there's always a way out. Like in a maze, you go in there, you will find a way out.... |
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