How to Lose Money Quickly

Trading in a volatile market

You can read the whole piece at STUMP:

How to Lose Money Quickly: Trading in a Volatile Market

Here’s an excerpt:

People can get really caught up in the frenzy of the moment, and trading while values are fluctuating wildly can lead to locking in losses and missing recoveries. If you are a long-term investor, like me – meaning I don’t need to draw on my investments for income for decades – then it is a huge mistake to make trades during a volatile period of the market. You are likely to get burned.

And a graph of recent market movements:

In the post, I look at the kinds of panicked trading I’ve seen in volatile periods, and how much money can be lost.

Don’t Forget!

I’m watching Carmen tonight (Monday, March 16) on metopera.org - join me on facebook to chat, if you wish!

Here’s my Carmen video explainer, if you missed the prior substack post:

Hope to see you at the online opera!