GME: Giant Rollercoaster and a Hot Damn Life Lesson
Read to help a broke undergraduate who bet on GME to reduce his suffering.
TO INVESTMENT BEGINNERS (so do I): It is always until you did something wrong then you would regret on something, like “Oh my god what the hell have I done look at this mess” then roar to the streets at 3 a.m. until some of your neighbours find a cop and shuts you up.
Shouldn’t have tried to buy a stock without researching beforehand. The past few days discussion forum was flooding with information that GME was having a good prospect and surely we can expect a skyrocketing rise. Welp. How can I not be attracted by the shinies? Ends up buying something that I know nothing about. Ouch.
As a history student, I had draw comparison of this event (before I entered the market) with the old and notorious Dutch Tulip Mania, which people rushed to buy tulips, pushing it to sky-high prices and the last who bought the tulips, became broke as the flower dropped back to its intrinsic value. I was thinking that “They gave a pretty solid reason that GME is different from the Mania, hey I am buying that.” Now thinking respectively, isn’t it no difference from this fever? I couldn't say now for sure, but at least I feel bad for all my (and my friends’) bucks that I dumped to the ocean.
Should have known how much can I invest. I was thinking to put like $2000 USD. When I buy it at $300, it was rising so fast that in 5 minutes it went up to $360. Here comes my inner devil, telling me that “that's going to be higher and higher, won’t you want to earn more?” Then I decided to dump all of my savings (puny $5000 USD to the Funds, three years of saving of a “hardworking” undergraduate).
This is pure financial mismanagement. Lads, don’t let greedy and emotion dominate your rational thinking (like I do.) I don’t have any reserve left. Should have “invested” an appropriate amount that even if I lose, I do not need to rely on credit cards to fulfil daily necessities.
Shouldn’t have rallied my friends to join. You will always feel regretful if you encouraged your friends to join a downward ride with you. I was ranting on discord, brain indulged in the preaching of r/wallstreetbets and became a GME priest myself. When I was in my friends’ gaming discord server, I asked them out of hype, “You wanna buy GME? We can earn big bucks.” Some inexperienced friends agreed to ride my rollercoaster. They transferred money to my bank account then I bought the shares for them.
You all know how the GME price goes now. I am painful for my losses, but more for the grievance and anger that I just lured my friends into a trap. Even without knowing beforehand, even it is unintentional, it is, painful. I betrayed their trust by making wrong decisions. Sigh.
Should have known when to stop. Once it went up to $470. Out of hype, I think it could be higher and hold. Now the losses are far beyond recoverable. Expectation management is important and, please, do not rely on emotions on the financial market. Prisoners’ dilemma isn’t easily breakable.
Should have listened to advice. I happily told that when I got a handsome profit on the account to my mum and my friends, who are somewhat experienced in stock trading. They told me to stop when I can grab some profit on the account and it is too late to enter GME. Only if I have listened to them and put their suggestions into my mind.
Shouldn’t have challenged overly powerful parties at their strength. Sun Tsu once said, “If your enemy is in superior strength, evade him.” This is a fairly fundamental military principle that should have understood by someone who proclaimed himself “specialized in war history.” Hallo Robinhood von Citadels.
This is all personal experience and I do not mean to ignore the meaning of buying GME. It is about saying a “no” to hedge fund and Wall Street. This is still an ongoing battle. Perhaps, the stock would rise again and I can get my money back? I am strong holding, albeit forced, haha.
To a brighter side, at least I didn’t loan or used margin, or else I am really going bankrupt. I just need 200 of hardworking hours to regain my losses. It doesn’t seem that bad. I also know again that there are friends who trusted me and risked themselves. Thank you all for listening to my dumb little story. Thanks all.
Learnt an expensive lesson and will be a better me.