I sold 40k in NVDA Oct 2022 for a healthy loss (tax loss harvesting). I planned on repurchasing 31 days later. The share price had gone up so I waited and waited missing the boat. Cost me an early retirement. I sold Tesla at the same time. I'm an idiot,yes.
Nothing is sad, this is common Many people have over leverage position and this is called high fall or short squeeze during black swan event or manipulators. They liquidate retailers out and then price moves in the original direction
There is nothing sad about this .. He was a fool....not intelligent 🤓 Who buys a single stock for 100k and that to 3 times levereved😅😅😅😅😅. HE DESERVED IT. I seriously don't think it is a true story
My loss in 2022 was around $70K, but I wasn't forced liquidation because my leverage was about 1.4x. I recovered all in 2024. lol. but yes true, learnt never leverage.
Everyone thinks they're a hotshot investor until they're not. Everyone needs education from The School of Hard Knocks. Using margin invites 100% of the dynamics of that strategy, losing 100% of your investment.
As a nvidia developer partner i was aware their gpus gonna be kick ass and bought stock cheap few years ago before rtx etc and I'm now retired before by 35th birthday lol.
me, 37, as a jack of 7 trades with computers, saw it coming in 2018 and spent all my life savings, cars into mining rigs, now i am a millionaire, 3 home owner, 4 cars all paid off and live off stock dividends, crypto and rent money....easy...
I'm new to trading/investing and was recently reflecting on the past 2 years. The one thing that's stood out was I made most of my money on buying and holding, even when the stock goes down. I'll eventually make money if I'm patient enough to hold through the pain.
Indeed! But Greed is where MOST people fall foul! Mastery over oneself is a Key Skill that only few of us have! Which partially explains the state of this world we live in! 😳
I bought 20 shares in March 2022 or something like that. It immediately went down…. I thought about selling, but decided to buy 20 more shares. This is one of the few times I have had good timing in the market.
For new investors: Buy stocks in solid companies and hold them as long as they stay strong. Ignore forecasts and market opinions-they’re distracting at best and useless in the long run
Thank you for the lesson, Adam! He lost everything! The cardinal lesson - the REAL lesson - is NOT to use leverage to magnify "profits." Timing is NOT the issue. GREED is the issue.
Greed is not the issue here... Its also not that he used leverage. The real issue is that he took an uncovered risk that could wipe him out. He needed to put safeguards in place in case of price drop, to make sure that he didnt lose everything. Basically, a limit where you auto trigger sales to cover your leverage. He took an extremely silly trading position. Putting everything you have into a single stock is silly. And leveraging on top of that only compounds the silliness. It was a disaster waiting to happen.
If you're going to leverage, buy only high-quality stocks that pay regular dividends. These types of stocks usually have a soft landing when there is a stock market crash.
When you use leverage, the system knows your position. The market maker will make a temporary dip to force you to sell even though their ultimate plan is to pump it. That is why it bounces back right after you sell. So it is not really about timing.
Unless you have at least in the millions in a position the market maker does not care about you. If they see a lot of people with stop losses set, they will push stock down to trigger stop losses and then buy lower.
I appreciate you explaining everything because im new to stocks/finance and the majority of financial youtubers dont explain the basic terminologies used 👍🙏
trader = gambler, sute different rules for each one. invest in good company for 5 years and sleep well every night. or trade and be in stress from bell ring to bell ring.
Leverage you have to know when to apply. I activated my margin about 18 months ago and my net worth tripled last year due to smart deployment of the leveraged funds (primarily into a handful of AI assets including Nvidia) now is in fact one of the hardest times ever to lose money deploying margin IF you put it into solid companies & the AI revolution makes it dead easy to invest in solid companies. So the risk of loss is at it's lowest level now & is likely to stay there, not for weeks or months but for years.
A few friends have commented some of the topics are repetitive but drawing comparison as a dancer, we do basics all the time and there is always something new we can work on in our fundamentals. I gained more insights into leverage with regards to 1.5x during 30-40% discounts and the dangers of overleverage in this episode. Thank you Shifu for the video!
Ten years ago I lost a lot in a year with leverage (when money was scarce). Now I won three times as much back in a few month without! I got me a brain also the last years...
Dude.... Your awesome! I lost a lot of money w/ options. I never do margin, but options are just as bad or worse. Now, I don't place more than a 100 dollar bet or gamble per month with the goal of making 25 percent. Funny, I take l Out money I get, pay myself and take that same 100 try again.. Otherwise... The rest of what I have is DCA in actual stocks. Gonna be a long time making my money back and I have learned, but still not perfect... Just less risk. 🙏
I think diversification is not the correct strategy for curiously dubious. the correct strategy was his original strategy - heavy concentration on a good idea (nvidia gonna b king of AI). If he did not leverage, he would have become a multi-millionaire. Diversification is for those who did not study a company or an industry enough. So buying etf is a means to diversify.
Every successful trader/investor/business owner has losses. It’s an unavoidable name of the game. Don’t quit. Learn, adapt, overcome. Leveraged trading is a monster, I also lost a years worth of savings during corona. I doubled my savings then lost it all. But
Yep. He lacks holding power cos he over leverage. Also, never go all in on 1 stock; always diversify. In short, must have holding power especially if market goes the other way. Dont be greedy. Buy/Sell with a rational mind (not emotional).
I broke the diversification rule going all in on Nvidia and Rolls Royce during the covid lows. It worked out well but I probably wouldn't do it again and was never tempted by leverage.
Many investors do not consider the emotional aspect when it comes to clear-headed decision-making. When they are losing 80% of your capital, you can't think straight. For that reason, I stick to a golden rule : invest an amount where you will not be emotionally affected, regardless of which way the chart goes.
Thanks for the refreshment, I followed both your long-term investing course and the short-term trading courses and they are both very much worth it. They give you the handholds to become a profitable investor with confidence and give you realistic expectations.
A healthy portfolio needs three essentials: ETFs for diversification, cash-flow assets like dividend stocks, and leading tech stocks such as NVDA, GOOGL, and AMD. While I can't provide personalized advice, consulting a reliable advisor is crucial for proper investment planning.
the only stocks i own are the same u mention, and to complement i've sp500 ETF. Do you belive if u invest today in those stock, they are consider a safe investment for long period of time?
sadly im 24 and i feel so useless that i dont know nothing about trade or nothing i got 5k and iwanted to invest on somenthing but i know so little abvout all this
stock market drops 10% about every 1.6 years. This normally involves high fliers loosing 30% rather than value stocks like walmart, ,coca cola, pg. There's a formula that something like 22% value stocks, 10% Bonds takes the 10% drop to 5% thus lowering the risk of a margin call. Risk management is how you win the long game.
You leverage with money you can lose, you invest with money you spare and buy some solid shares. Classic Icarus effect. Loosing money with Nvidia is a masterclass of misunderstanding stock markets.
Hi Adam, can you do a video on Elilly stock. It's been going down for 5 straight months and has great fundamentals. Do you think it's a good time to buy?
I leverage as well but if I hit high risk I start transferring money in… upside I gained downside I not worried . I only paid interest for the margin and give me liquidity . If stocks run up a lot I sold and paid off margins . If it crashed I start to pump cash back in to reduce margin risk. Advantage is that I have liquidity both ways but the max leverage is 2x. I kept half the money in the bank. Advantage is that I can focus on growth stocks and not be challenged by sudden drops for a longer term horizon. In 2022 when tech stocks crashed I am down 90% but bought as much as possible. That accounts for 240% gain in 2023 and 240% gain in 2024.
"Bears make money. Bulls make money. Pigs get slaughtered." ; "Patients is a virtue." ; "Time in the market beats timing the Market." ; etc.......etc.......etc.......
There was a similar story about a guy who put all his money in Telsa stock. He kept on buying and buying Telsa stock as the stock kept on going up and up. Then we had that stock market crash a few years ago. He got wiped out. He lost every penny of his investment, as he was highly leveraged.
That's like saying that "I bought a Bugatti and couldn't overtake anyone on the highway..." What did you do, man? The difference is that while Bugatti engineers would be very happy if you are happy, Wall St is actively doing everything to GET our money. They are doing it this week! Nvidia went to the puts at 125 and then up past the calls at 150. What happens? Leveraged bets get all the drama and excitement but timing the market rarely works in the long run.
I sold 40k in NVDA Oct 2022 for a healthy loss (tax loss harvesting). I planned on repurchasing 31 days later. The share price had gone up so I waited and waited missing the boat. Cost me an early retirement. I sold Tesla at the same time. I'm an idiot,yes.
tesla is a hold man
Yup, most of us are idiots.
I think many of us sold at least some Nvidia before the AI hype train only to buy back in.
You can make it up now, buy XRP and hold. It has the potential to go to 10k-60k in the next 4 years.
Been there and did the same, it’s the cost of education in investing, still leverage but only 10%, very painful to learn these life lessons.
That is the most sad investing chart I have ever seen
Nothing is sad, this is common
Many people have over leverage position and this is called high fall or short squeeze during black swan event or manipulators.
They liquidate retailers out and then price moves in the original direction
Blue line goes up..profits is what I see
@@ChiChi-b5kbecause the investor was leveraged, they saw none of it.
@@keshavtodi2177 Sad and common can intersect honestly.
There is nothing sad about this ..
He was a fool....not intelligent 🤓
Who buys a single stock for 100k and that to 3 times levereved😅😅😅😅😅.
HE DESERVED IT.
I seriously don't think it is a true story
Lost around 10k USD in 2021, during leveraged trading. Never ever leverage, my biggest lesson too!
My loss in 2022 was around $70K, but I wasn't forced liquidation because my leverage was about 1.4x. I recovered all in 2024. lol. but yes true, learnt never leverage.
just leverage smart
Everyone thinks they're a hotshot investor until they're not. Everyone needs education from The School of Hard Knocks. Using margin invites 100% of the dynamics of that strategy, losing 100% of your investment.
@@mrhellinga9440 Right, like 10-20% of your portfolio is manageable. 100-300% is asking for financial ruin.
$10k????
Pennies my boy. 😅😅😅😅
I watched one of the Warren Buffets's interview in which he said the key to success in life is to avoid 3 Ls (Liquor, Leverage, Ladies).
Is that true ?
This was said by Charlie munger.
Ladies? He must be gay 😂
Sounds like munger
Leverage can be good, but only when used after big sell offs to buy high quality stocks
I like how adam khoo almost screeched at this part~
"He didn't learn his lesson. Or he learnt the wrong lesson".
it's horrible to watch this, i'm in pain
I've only ever played the markets with my own money, never used borrowed and never intend to.
🎯
Never ever over-leverage and go all-in. Always have some dry powder on hand. 😉
Can go all in like tsla investors, just need to have holding power.
@@temasekb Sure, just don't do it on margin.
How about wife?
Unless you are in a casino
As a nvidia developer partner i was aware their gpus gonna be kick ass and bought stock cheap few years ago before rtx etc and I'm now retired before by 35th birthday lol.
I hate you and love you at the same time. Congratulations man. Just jealousy here
Now tell me what stock will be next nvidia😆
Fuck yeah! Smart man!
me, 37, as a jack of 7 trades with computers, saw it coming in 2018 and spent all my life savings, cars into mining rigs, now i am a millionaire, 3 home owner, 4 cars all paid off and live off stock dividends, crypto and rent money....easy...
That's considered insider trading but props to you bro
Margin kills when margin calls. Never invest with margin.
can be very risky when market turns on you
I bought AMD at $2 and sold at $34. I’m bummed that I was impatient, but I’m happy I learned my lesson from a profit.
When did this happen?
Greed got him. He’d be a multimillionaire if he would have just kept the 100k in shares with no margin.
Get rich quick doesn't work.
I'm new to trading/investing and was recently reflecting on the past 2 years. The one thing that's stood out was I made most of my money on buying and holding, even when the stock goes down. I'll eventually make money if I'm patient enough to hold through the pain.
As long as company + business fundamentals sound...
Same, lost many , many thousands trading and doing options, my overwhelming profits have been buy and hold blue chips and reinvest dividends.
Unless you've bought a xerox or at&t....
Time is everything, and if you boarded the bus at the wrong time, then the next bus is patience !
yes, don't be greedy, don't gamble away away with what you have...
Indeed! But Greed is where MOST people fall foul! Mastery over oneself is a Key Skill that only few of us have! Which partially explains the state of this world we live in! 😳
I bought 20 shares in March 2022 or something like that. It immediately went down…. I thought about selling, but decided to buy 20 more shares. This is one of the few times I have had good timing in the market.
You are doing averaging down. That works for long term investments.
I will be Holding a private class soon
I bought 15 shares August 2022 as a small tech holding only knowing of Nvidia's gaming GPUs and some automotive chips. I only heard of AI October.
this is the saddest story. he invested in the most successful company before everybody
Only thing greed got the better of him as he leveraged 3 times!
For new investors: Buy stocks in solid companies and hold them as long as they stay strong. Ignore forecasts and market opinions-they’re distracting at best and useless in the long run
Thank you for the lesson, Adam! He lost everything! The cardinal lesson - the REAL lesson - is NOT to use leverage to magnify "profits." Timing is NOT the issue. GREED is the issue.
Greed is not the issue here... Its also not that he used leverage.
The real issue is that he took an uncovered risk that could wipe him out. He needed to put safeguards in place in case of price drop, to make sure that he didnt lose everything. Basically, a limit where you auto trigger sales to cover your leverage.
He took an extremely silly trading position. Putting everything you have into a single stock is silly. And leveraging on top of that only compounds the silliness. It was a disaster waiting to happen.
I disagree, use leverage on a diversified bases AS LONG as that leverage is NOT callable.
Callable leverage is a pretty stupid thing
I think his health is most important and he is sick now.All the best to him in the future.
Sometimes bad news can snowball. From one mistake people can end up in early grave.
That's why you don't leverage long term positions. I can see leveraging a day trade...maybe even a swing trade. But never a long term hold.
Never leverage...use existing savings
If you're going to leverage, buy only high-quality stocks that pay regular dividends. These types of stocks usually have a soft landing when there is a stock market crash.
I agree. Timing was not the issue. The risk management is.
This is -an outstanding lesson and presentation - thank you……learn from other people’s mistakes as they are the cheapest lessons learned
Holding power is important. Hard to predict short term events .
I made most of my money on buying and holding patience is key.
When you use leverage, the system knows your position. The market maker will make a temporary dip to force you to sell even though their ultimate plan is to pump it. That is why it bounces back right after you sell. So it is not really about timing.
Unless you have at least in the millions in a position the market maker does not care about you. If they see a lot of people with stop losses set, they will push stock down to trigger stop losses and then buy lower.
Market makers don't care about a couple thousand or even hundred thousand in a position
Market makers doing what they do best. Taking all our money. They are very good at it.
@marioxmariox of course, they see as a whole. One person's leverage can be small, but if you see many leveraged positions, they will go after that.
@hostileaks4495 yes, they only care when it is big. If there are millions of people with small positions, they will go after those.
It is better to follow the old book to invest with money we have and not to leverage or option.
Leverage is the most danger thing to do in trading
So are buying stock options, short selling and buying futures.
it isn't so much about timing (although its important), its about not taking on leverage as your risk is amplified
Leverage can be effective but it needs to be done only after big sell offs
so sad..even when you're right you can be wrong and lose it all if you don't manage risk
I appreciate you explaining everything because im new to stocks/finance and the majority of financial youtubers dont explain the basic terminologies used 👍🙏
Timing is crucial if you are a trader rather than an investor.
trader = gambler, sute different rules for each one. invest in good company for 5 years and sleep well every night. or trade and be in stress from bell ring to bell ring.
There is a big difference between investing and gambling.
@@bojankojic108true
@@bojankojic108 ++++++++++
@@bmoshareholderappleshareho855I like how your name says it all
It’s not rocket science. You buy good companies and you hold them. You don’t jump in and out trying to time the market.
Peter Lynch always says to invest what you are willing to lose.
Great analysis Adam. I totally agree with what you just said.
Leverage you have to know when to apply. I activated my margin about 18 months ago and my net worth tripled last year due to smart deployment of the leveraged funds (primarily into a handful of AI assets including Nvidia) now is in fact one of the hardest times ever to lose money deploying margin IF you put it into solid companies & the AI revolution makes it dead easy to invest in solid companies. So the risk of loss is at it's lowest level now & is likely to stay there, not for weeks or months but for years.
Buy stocks which you think has huge potential to grow. Seeing my portfolio grow changed my life for good
"This is the way! ALL IN! NO STOPLOSS!!" -Wsb
A few friends have commented some of the topics are repetitive but drawing comparison as a dancer, we do basics all the time and there is always something new we can work on in our fundamentals.
I gained more insights into leverage with regards to 1.5x during 30-40% discounts and the dangers of overleverage in this episode.
Thank you Shifu for the video!
Ten years ago I lost a lot in a year with leverage (when money was scarce). Now I won three times as much back in a few month without! I got me a brain also the last years...
A very important video, thank you Adam
Great Video !! Diversify is important !!
I missed x10 on AMD then x 10 on BTC and then x 10 on TSLA and x10 on NVDA did i learned lesson ? no ... why ? because i thought i can day trade ...
Very good advice my friend. I have lost 90% of my life's savings that I'll never recoup because I was a gambler in the stock market. High margin
Dude.... Your awesome! I lost a lot of money w/ options. I never do margin, but options are just as bad or worse. Now, I don't place more than a 100 dollar bet or gamble per month with the goal of making 25 percent. Funny, I take l
Out money I get, pay myself and take that same 100 try again..
Otherwise... The rest of what I have is DCA in actual stocks. Gonna be a long time making my money back and I have learned, but still not perfect... Just less risk.
🙏
I think diversification is not the correct strategy for curiously dubious. the correct strategy was his original strategy - heavy concentration on a good idea (nvidia gonna b king of AI). If he did not leverage, he would have become a multi-millionaire. Diversification is for those who did not study a company or an industry enough. So buying etf is a means to diversify.
Agree, sir. Diversification increase the risk.
Diversification is for the average investor.
😆 I hope this post is a joke. Anything less then diversification is pure gambling & should be done in a casino.
Every successful trader/investor/business owner has losses. It’s an unavoidable name of the game. Don’t quit. Learn, adapt, overcome. Leveraged trading is a monster, I also lost a years worth of savings during corona. I doubled my savings then lost it all. But
This is my favorite teacher for trading!
Real lesson, greed and leverage.
Thanks Adam for the lesson! What about using leverage on selling options/puts?
Another great one, thanks Adam.
Yep. He lacks holding power cos he over leverage. Also, never go all in on 1 stock; always diversify. In short, must have holding power especially if market goes the other way.
Dont be greedy. Buy/Sell with a rational mind (not emotional).
everyone is going etf. dont buy single shares, just go with the flow and wait until everyone is invested in etfs in a few years
Forgot my family had stock in this since before the pandemic. Great thing to forget about.
I broke the diversification rule going all in on Nvidia and Rolls Royce during the covid lows. It worked out well but I probably wouldn't do it again and was never tempted by leverage.
Many investors do not consider the emotional aspect when it comes to clear-headed decision-making. When they are losing 80% of your capital, you can't think straight. For that reason, I stick to a golden rule : invest an amount where you will not be emotionally affected, regardless of which way the chart goes.
Love you coolest teacher 💞💞😊
Thanks for the refreshment, I followed both your long-term investing course and the short-term trading courses and they are both very much worth it. They give you the handholds to become a profitable investor with confidence and give you realistic expectations.
Thanks for always guiding us Adam. Your videos are truly helpful!
Thank you for this Adam! I got so much value out of this.
Best investment advice right here.
I was also highly leveraged on Nvidia at the time, and I lost it all, but $40,000.
Ouch
All u lose is time.....if it's a decent stock the price will eventually rise.....always have enough to average down
Informative video! Thank you Adam.
ADAM thanks !!!
A healthy portfolio needs three essentials: ETFs for diversification, cash-flow assets like dividend stocks, and leading tech stocks such as NVDA, GOOGL, and AMD. While I can't provide personalized advice, consulting a reliable advisor is crucial for proper investment planning.
the only stocks i own are the same u mention, and to complement i've sp500 ETF.
Do you belive if u invest today in those stock, they are consider a safe investment for long period of time?
I love the HK accent!
sadly im 24 and i feel so useless that i dont know nothing about trade or nothing i got 5k and iwanted to invest on somenthing but i know so little abvout all this
2:30 wrong.. 40% times tree = sapling.
This was awesome thank you!!
Very interesting and insightful take.
Veryry good advise
stock market drops 10% about every 1.6 years. This normally involves high fliers loosing 30% rather than value stocks like walmart, ,coca cola, pg. There's a formula that something like 22% value stocks, 10% Bonds takes the 10% drop to 5% thus lowering the risk of a margin call. Risk management is how you win the long game.
Thank you for your lessons, you are so wise ❤, im interested in Nu holding, should i wait for p/e 25 or it is fine at 30?
Thank you Adam Khoo
You leverage with money you can lose, you invest with money you spare and buy some solid shares. Classic Icarus effect. Loosing money with Nvidia is a masterclass of misunderstanding stock markets.
Thank you Adam Khoo some great lessons here!
First time here. Good vid
Thanks Adam for the valuable advice on investing
Great video, nice lesson about leveraging..buying stocks …luck or skill?
Maybe both…
That's why i dont complicate things in investing, spot and no leverage etc
I bought Nvidia pre-split back in 2018.
Why anyone would put so much into it post-split I have no idea.
BUY THE RUMOR- SELL THE FACT.
Hi Adam, can you do a video on Elilly stock. It's been going down for 5 straight months and has great fundamentals. Do you think it's a good time to buy?
Thanks Sir
In Adam we trust !
I leverage as well but if I hit high risk I start transferring money in… upside I gained downside I not worried . I only paid interest for the margin and give me liquidity . If stocks run up a lot I sold and paid off margins . If it crashed I start to pump cash back in to reduce margin risk. Advantage is that I have liquidity both ways but the max leverage is 2x. I kept half the money in the bank. Advantage is that I can focus on growth stocks and not be challenged by sudden drops for a longer term horizon. In 2022 when tech stocks crashed I am down 90% but bought as much as possible. That accounts for 240% gain in 2023 and 240% gain in 2024.
Leverage is fine with proper risk management..
Hi Adam, maybe you discussed this question before. I am interested in how you manage currency risks. Can you elaborate on that? Thx John
If you trade with leverage,you must always apply a stop loss otherwise you risk to lose everything
His real mistake: he didn’t take AK’s wealth academy course 😢
"Bears make money. Bulls make money. Pigs get slaughtered." ; "Patients is a virtue." ; "Time in the market beats timing the Market." ; etc.......etc.......etc.......
Thank you.
omg...this is exactly the same story as mine..this is what happened to me with crude oil
Same, thought i couldn't lose, then it went negative...
Noone want become rich slowly (WB)
All new young investors make the same mistake, patience is a must in becoming a successful investor.
Thanks Adam.
Could the Brooker short all his holdings and bet on he can’t play? Or is it not allowed.
There was a similar story about a guy who put all his money in Telsa stock. He kept on buying and buying Telsa stock as the stock kept on going up and up. Then we had that stock market crash a few years ago. He got wiped out. He lost every penny of his investment, as he was highly leveraged.
Timing as not most important thing
Question articles during crises, see if true that performance degraded
I am thinking we should always setup stop loss for the situations where there are black swans. What's your view?
That's like saying that "I bought a Bugatti and couldn't overtake anyone on the highway..." What did you do, man?
The difference is that while Bugatti engineers would be very happy if you are happy, Wall St is actively doing everything to GET our money. They are doing it this week! Nvidia went to the puts at 125 and then up past the calls at 150. What happens? Leveraged bets get all the drama and excitement but timing the market rarely works in the long run.
Just hold long term and Wall St will not be able to do anything against you. Buy undervalued and sell overvalued.
@@sakakaka4064 In other words, buy low and sell high. Most people end up doing the exact opposite.
Hi Adam, What are your thoughts on TLT/TMF ETFs?