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What happen if you cannot pay your contra loss?
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jm2212
Senior |
01-Aug-2007 10:26
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i see many of the similar cases heppened around me, that's why i never want to encourage contra or margin trading. gambling & investing is only between one thin line, share market is controlled and manipulated by BBs, small players will always suffer in the end. loss most of my gains in a week.... sigh |
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KiLrOy
Master |
01-Aug-2007 10:21
Yells: "I buy only what I can see." |
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Its take guts to admit defeat and its a legend to be able to share your experience with others. Your are so right Centaur. |
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Centaur
Veteran |
01-Aug-2007 09:58
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most people only brag about their winnings. At least bentan is candid about his losses, sharing his experience and had treated this as a lesson learnt... Way to go, Ben. |
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harryp
Veteran |
01-Aug-2007 09:58
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Sometimes it is not about bad money or risk management. There are people out there who are addicted to gambling and are completely out of control once they are involved with risk taking activities. I have personally come across many who are in heavy debts and yet borrow money from Ah Long to be at the race course every weekend. Sometimes they cannot pay up and have to run away into hiding when the Ah Long puts the heat on them. Some lucky ones may have their family members to settle the debts for them. But not for long these addicts will be back at the Ah Long table and eventually run road again and again. Perhaps what they need is some psychological treatment or something like the alcoholic anonymous organization to help them. |
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KiLrOy
Master |
01-Aug-2007 09:23
Yells: "I buy only what I can see." |
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Must read lah else how else can you increase your knowledge and differentiate between what is trade management stop and risk management stop and that pyramiding or average down is usually confused with money management. Money management is about consideration of both RISK & REWARD. Minimising RISK and Maximising REWARD. Because we tend to involve our emotion in trading, Money Management can at time helps refocus your trade objective - at least it does for me. Ten years ago I thought I knew it all until I lose it and started reading. No harm if you read to gain knowlegde, but it will be 'harmful' if you DONT HAVE THE knowledge. Everyone tends to think, arming knowledge with the know how to read technicals analysis and fundamentals is enuff. The worse enemy is actually yourself so do ourself a favor and increase our understanding of ourself. Read about trade psychology and money management. Enuff said. Soley for bentan79, I dont know how old you are but its never to late to learn and perfect the most important fundamental in the investing/speculating world. Here's a article I would like with all. I am your constant companion; I am your greatest helper or your heaviest burden. I will push you onward or drag you down to failure. I am at your command. Half of the tasks that you do you might just as well Turn over to me and I will do them quickly and correctly. I am easily managed; you must merely be firm with me. Show me exactly how you want something done. After a few lessons, I will do it automatically. I am the servant of all great people and the regret of all failures as well. Those who are great, I have made great. Those who are failures, I have made failures. I am not a machine but I will work with all its precision Plus the intelligence of a person. Now you may run me for profit or you may run me for ruin. It makes no difference to me. Take me, train me, be firm with me and I will lay the world at your feet. Be easy with me and I will destroy you. I am called Habit! author unknown |
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JamesAng
Member |
01-Aug-2007 07:41
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if you cannot pay your debts, wise up and work harder to earn "sure" money. |
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cyjjerry85
Elite |
01-Aug-2007 01:10
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it will be good to pick up technical analysis (short term...doesn't necessary mean contra) or solid fundamental analysis (if u want to hold longer term) |
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StarLine
Senior |
01-Aug-2007 01:01
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Yes, it looks like your money management is not good enough. I would suggest for you to keep a spreadsheet of all your stock purchased, and do a calculation at what price each stock can go down to, like when it go down 5%, you better sell, and run. The other thing is, when I play shares, I set aside a certain amount of money that I can afford to lose, and not a single cent on credit. If you keep losing money in contra, then I would suggest you be like me long term investor. |
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EastonBay
Master |
31-Jul-2007 23:38
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If you ever need to pay interest charge on Credit Card, it's bad money management already. The golden rule "Buy only what you can afford" or "don't stretch your limit" applies both to credit card and investment. (Have been a credit card user for more than 15 years, never once pay late and always pay in full.). |
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Livermore
Master |
31-Jul-2007 18:56
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I totally agree witrh Kilroy on money management. To me, it could be the number 1 rule to remember. But I don't believe one needs to read a book to know that. All the best! |
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shalom
Member |
31-Jul-2007 18:54
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I totally agree witrh Kilroy on money management. To me, it could be the number 1 rule to remember. But I don't believe one needs to read a book to know that. All the best! |
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KiLrOy
Master |
31-Jul-2007 14:18
Yells: "I buy only what I can see." |
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Before anyone 'invest', sort out your money management first. For every investment, if you do not know your money management strategy, you will risk losing more then you expect. Proper money management HAS NOTHING TO DO with WHERE YOU SHOULD ENTER OR EXIT A PARICULAR TRADE. Please please go to NLB and borrow the book by Ryan Jones. The Trading Game - Playing by the Numbers to Make Millions. EVEN Professional Traders first lesson is about money management. |
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synnexo
Veteran |
31-Jul-2007 13:43
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bentan79, Its really good that u realise where & what went wrong. In additional, I think its the GREED inside everyone of us that will bring us downfall, someday. Treat it as an expensive lesson learnt. Move on with your life & I am sure u will be stronger after this crisis. |
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bentan79
Member |
31-Jul-2007 13:15
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Dear all, The market seem to recovered the moment I sold my StarCruise and MAP yesterday. My worst bet is StarCruise. It went up after I sold at $0.525. I could have loss lesser. But then again...at least MAP i sold...else I could loss more The problem as you can see is I do not see what is my loss and how much I can take it. For a profit of a few thousand, I can loss up to 10 thousand. Is it worth it? I urge all members to consider the risk. The reason why I am in such state are as below: (1)Never stop when I lost inital 5k in contra. 1st warning for me. (2)Opening a few broker account and exposing myself to the max limit (3)Never think of my family finicial health, if they could help me (4) Use the profits of Broker A to pay loss of Broker B. In a Bull market, you will look good in the eyes of the broker due to prompt payment. In the bull market like last week, you will have to pay for it (5)Tried to cover loss from the inital 5k. Originally make some but played contra more and loss again. In summary (1)Play within your limits for contra (2)Decide a cut loss price and pull out if needed Update you later when I get my final bill...I am having a lot of pressure in paying up. WIll be looking for my brokers later Take care |
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baseerahmed
Master |
30-Jul-2007 09:30
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bentan79 : way to go ! all the best !!! 
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bentan79
Member |
30-Jul-2007 09:01
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Good morning everyone, Everytime I log in, I see words of encourangement and suggestion(s). I am very greatful to everyone in the forum. The reason why I am in this state is because (1) I lost 5k and got a "easy" loan to solve the problem from GE Money (never learn lesson in Feb) (2) I managed to cover some loss by looking at the buying demand for that day (eg BB accumulating at 30cent so he will let the price go up further....in a bear market, this is totally wrong) (3)I made some money contra on jade (human factor) by buying and selling 100Lots at 5 cents incremental (10+ k but was use to pay contra loss in other counter).However, when it start falling, I bought it at the peak with more than 200+ lots over few account. Same for Ban Joo Market had opened. I am going to take a look at MAP/Starcruise. Update everyone again. All the best |
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JamesAng
Member |
30-Jul-2007 08:27
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Noticed that most of losses are on Jade, which for years was a 2-3 cents stock, then when it move to 50 cents, it sucked in all the innocent speculators include Ben and caused massive losses when it corrected. It will likely continue to plunge since it was a 2-3 cents stock only less than 1 year ago. This is historical data which may re-trace. |
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JamesAng
Member |
30-Jul-2007 08:20
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Ben, if you can do some tutoring to supplement your income then you will be better off than not. www.learningspree.com.sg Other part-time job is to sell insurance? Or maybe you can clock more OT in your company. Never trade more to recover your loss or you'll sink deeper. Try something that is no risk and gives your real money such as tutoring which is more flexible. |
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cyjjerry85
Elite |
30-Jul-2007 03:26
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I applaud u for the courage to stand out here and share with fellow SJ members...can really see that despite your downfall this time round, you took up responsibility and face it...more to comment is your willingness to learn from this mistake and move on... Ben...u deserve a pat on your back...everything will turn out fine k...and who knows..?because of this incident, you learnt and will profit a greater margin in the future! cheers 
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bentan79
Member |
30-Jul-2007 03:20
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Dear forum members, Thank you for sharing your advice and encouragement. As some of you had guessed, I am 28 this year and earning less than 30k per annum. I did a summary of my loss as of last Friday and this is what I had owed to my broker so far. I do not wish the let them cancel my debt as "bad debt" and I wish to face the consequence of my action. Only then will I be always reminded of my mistake. My status as follow: POEMS TRUST ACCOUNT 1939.04 +600.95 = 2539.99 POEM JADE LOSS -$10512.97 After Jade minus trust -$7972.98 Sell off MAP loss ??? (Buy Price 0.71 25Lots; If sell at 0.61 is -$2616) Total owe POEMS -7972.98 + (-2616) = -$10589 (round up) LIM & TAN TRUST 1610.64 LIM& TAN JADE LOSS -3227.83 LIMTAN Jade Outstanding ###-$1617.19 + Sale of AEM(2 lot) 413.03 LIM & TAN FINAL OWE #########################################################-$1205 KE -8845.97 (as of THUR) KE Loss(Centiliton) -1029.00 (sale on fri) KE Total Loss ####-9874.97 (Including Centilition) KE StarCruise Loss -USD2134 (if sold at 0.53/50Lots)(rate to SGD may be much different) Total Loss -9875 + USD2134 = -9875 -3244 (conversion rate of USD1 to SGD1.72) = -$ 13115 Sale of HLH 12 Lots +???? (depend on sale price on Mon) Goh Final Loss ########################################################-1786.00 (sale on Fri) DBS Vickers -239.27 (Outstanding) DBS Starcruise loss -USD658 (if 15Lots sold @0.53 on Mon) Total Loss -239.27 - 1000.16 (conversion rate of USD1 to SGD1.72) = -$1240 Total Owe: -10589 - 1205 - 13115 - 1240 = $26149 Assume I owe 30k, 36mtn interest free, I need to pay min $834/mtn. If is broker/bank, interest will be incurred further. My plan now is to try to loan as much as possible from my friend/parent and return them (interest free). Next, what ever bonus I get will be handed over to them as part of repayment plan. Thus I need to find an altenate job for work.Anyone had jobs to recommend. I am working on rotating shift. To steffysim and everyone out there, how can i do a PM? Take care everyone and by tomorrow, the sky will be cleared for me. Story of how I got into this mess will be explained in details will follow after I work out the installment/repayment details. Finally words of advice from my lesson and more (1) Play within your means (2) INVEST and not TRADE (3) Seek advise from everyone and choose the final path you will take All the best to everyone on Monday :> |
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