How to deal with losing $117k in stock market?

[TomTX]

My student loans interest is 4.85%. Mortgage is 4.35%. I would like to make a decision by end of year as to what to do. I lost a lot of confidence in my investing ability and afraid everything I buy will end up in a big loss. But if I quit the market completely, I will feel bad knowing I threw away $117k with nothing to show for it.

Bolded for emphasis.

Good. Glad you are getting some sense.

Stop trying to "beat the market" and just "buy the market."

[TomTX]

I loaded up on oil exploration companies in November 2015 after big oil crash. Invested in Sandridge Energy (SD), EXXI, Penn Virgina (PVA), Goodrich Petroleum (GDP), Seadrill (SDRL), Breitburn Energy, Lynn Energy etc. They all filed Chapter 11 and my money essentially decreased by 70%. I then moved over to biotech in 2016 during Presidential Election. Was doing great and then near Election time, Hillary Clinton decided to attack the Pharmaceutical companies. I was on margin because I was confident the companies I invested in would get FDA approval (using my scientific knowledge as a Pharmacist). All biotech stocks plummeted in October 2016 and I was forced to sell at a lost due to margin call.

And that's why you don't gamble on margin.

[Scandium]

Hard to believe in one of the biggest bull market in history, I have lost $117k in the last 3 years investing in high risk oil and biotech stocks. I am disgusted with myself everytime I think about how much I've lost. I still owe $153k in student loans and $110k in Mortgage. I really want to run away from the stock market, accept I will probably never be able to regain my losses and focus strictly on paying of my student loans.  But I love to follow stocks (my main hobby) and the thought of withdrawing from the market makes me feel depressed. I also worry about missing out if tax reform is passed and the market continue to jump in 2018. What should I do?

So you have a hobby that cost you $117k in 3 years. If that's what you love to do keep doing it, as long as you accept the cost. Personally I'd rather own a 40 ft sailboat, which would still be cheaper and I think more fun, but to each their own. *shrug

[ChpBstrd]

Y'all be nice. It takes some badass courage to walk into the internet, admit to a six-figure mistake, and ask for advice moving forward. It takes zero courage to mock such a person. 

[Apple_Tango]

I’m definitely on the index/mutual fund train :) my portfolio is more complex than it needs to be, but I’ve still got over 50% in VTSAX. Some in a far out target retirement fund to get some bonds/rebalancing without me having to do squat, some is a growth fund that I love,  A very small amount in a gold fund which has been not been too hot but I’m keeping it anyway, etc. I started with VTSAX when I was 18, and I’m obsessed wih it.I’ve added to that portfolio because picking index funds is actually really fun!!!  I had to freaking sit on my hands to not jump into the new Global Wellesley and Wellington funds that came out this fall. I’m done expanding for the foreseeable future.

Maybe you can find a similar thrill in researching index funds and making money, than you were able to do with researching the stock picks.

[Fuperw84]

Y'all be nice. It takes some badass courage to walk into the internet, admit to a six-figure mistake, and ask for advice moving forward. It takes zero courage to mock such a person.

I feel ashamed of my past financial mistake so nothing anyone say can will make me feel more ashmamed than I already feel. I am determined to recover from this loss and learn to never repeat it again. I appreciate all opinions and advises in this forum.

[I'm a red panda]

I loaded up on oil exploration companies in November 2015 after big oil crash. Invested in Sandridge Energy (SD), EXXI, Penn Virgina (PVA), Goodrich Petroleum (GDP), Seadrill (SDRL), Breitburn Energy, Lynn Energy etc. They all filed Chapter 11 and my money essentially decreased by 70%. I then moved over to biotech in 2016 during Presidential Election. Was doing great and then near Election time, Hillary Clinton decided to attack the Pharmaceutical companies. I was on margin because I was confident the companies I invested in would get FDA approval (using my scientific knowledge as a Pharmacist). All biotech stocks plummeted in October 2016 and I was forced to sell at a lost due to margin call.

And that's why you don't gamble on margin.

I learned that from watching Saved by the Bell. Zack lost a lot of money.

Is there any reason to buy on margin other than gambling? I'm not sure I understand it. TV just taught me not to do it.

[boarder42]

I loaded up on oil exploration companies in November 2015 after big oil crash. Invested in Sandridge Energy (SD), EXXI, Penn Virgina (PVA), Goodrich Petroleum (GDP), Seadrill (SDRL), Breitburn Energy, Lynn Energy etc. They all filed Chapter 11 and my money essentially decreased by 70%. I then moved over to biotech in 2016 during Presidential Election. Was doing great and then near Election time, Hillary Clinton decided to attack the Pharmaceutical companies. I was on margin because I was confident the companies I invested in would get FDA approval (using my scientific knowledge as a Pharmacist). All biotech stocks plummeted in October 2016 and I was forced to sell at a lost due to margin call.

And that's why you don't gamble on margin.

I learned that from watching Saved by the Bell. Zack lost a lot of money.

Is there any reason to buy on margin other than gambling? I'm not sure I understand it. TV just taught me not to do it.

crash like 2008 where the market loses 40% of its value i could see as a reasonble time to possibly take out some margin - though i'd use protected margin via a cash our refi or HEL

[soccerluvof4]

I've lost a lot more money than that in the past. Bottom line is forget it and only look in the rear view mirror to learn. You have time and an income on your side so follow the advice people said on here, forget trying to hit the home run and you will be more than fine. Just don't make the same mistake twice.

[bwall]

I know this post is a bit old, but here are some more thoughts that can perhaps help someone else who wants to trade the stock market.

OP picked two sectors; first oil, then bio-pharma.

If you're trading, and a stock goes down, you have to ask the question 'why'? Did it report bad numbers? Did the CEO quit? Was there something material that specifically affected their business? Presumably, the answer to all these was 'no'. What advantage do you have? What do you know that the market doesn't know?

Who was on the other side of the trade? Why did the stock go down? Because the price of oil went down. Why did the price of oil go down? Because the Saudis made a political decision to open the taps and drive the competition out of business. The oil price (and therefore oil sector stocks) cannot go up until the Saudis are done. When will they be done? Dunno. Can the companies still make money at these lower prices? I guess we have the answer now, and it's 'no'.

A lot of other very smart people, even people in the oil sector, made incorrect decisions. Harold Hamm lifted his hedges (sold when oil was at $110 or so) when oil was at $85. He could've waited and made a lot more money, but he didn't.

OK; now to look at the bio-pharma sector:

Here you have a competitive advantage as a pharmacist. You understand the jargon and you 'common sense' level is higher. But, before you invest blindly in a bio-pharma, you have to do your research:

1) What phase is their research in? Phase I,II, or III?
2) How big is the market for their product?
3) Is this a 'real' innovation, or a 'me-too' product?
4) What are the qualifications of the CEO? Is he also an MD? Or just some MBA that knows nothing about science and research?
5) What is their 'burn-rate'? How many more months can they operate before they have to issue new shares?

These are just questions, comments and insights from someone who plays the market for fun and profit. A Wall St. pro would look at this and laugh. If you can't (or don't want to) do this research, then the best thing VSTAX index funds is by far the best investment. I've also got a lot of VSTAX, btw.


 

[fmzip]

Commit to this:

Let the $117K loss be just that. Don't try to get it back by buying individual stocks, you will likely lose more than you ever gain.

My good friend got burned too to the point of 1.2M in losses in the oil sector. He has balls, now he sits on 62,500 shares of AT&T worth $2.5M. It's his only holding....

Pigs get fat...hogs get slaughtered. You can gain great wealth by taking the slow boat. You do it right, commit to a plan and stick with it.

Again, commit to this, the $117K is a learning lesson. I've lost that and then some over the years. Don't be like my other buddy who just turned sixty that has been out of the market since 2009 because he was too scared to get back in. You will be invested all your life, just be prepared to loss 50% of whatever money you throw at the stock end of the portfolio.

How old are you if I may ask?

[Mighty-Dollar]

What should I do?

I've been investing for like 30 years. Once thing I eventually learned was to stop trying to cherry pick the next hot sector or individual stocks. Instead just buy the broad market (ex- a total stock market index fund or an S&P 500 index fund). If you want more risk then just add QQQ (the NASDAQ index fund). Keep it simple.
Also observe age appropriate diversification into bonds (via a total bond market index fund).

[TheOldestYoungMan]

I hesitate to push a gambler into anything anywhere near their addiction.  But you can't avoid money in this life.

Your earning potential right now is very high.  You've got a little bit of debt still, so you can pay that down and put yourself into a very good position to weather future storms.

I would make a very conscious effort to keep financial aspects of your life as simple as possible and replace the time you were spending on those things with other productive uses.  Find yourself a replacement hobby.

Become a great swimmer, tackle a cycling distance challenge, learn a musical instrument.  Take cooking classes or dance classes.  Learn to weld.

Once you've let some time pass and distanced yourself from the previous addiction, re-engage with long term financial planning with oven mitts and a face-mask.

The overwhelming majority of the information out there is designed to separate you from your money.

Anything on television should be ignored.  Throw the TV away.  Do it today.  Well, sell it.  Or keep it, but it is for movies only, cancel the cable, get some amazon prime.

When you think you've kicked the stocktrader habit, remember this:

By an overwhelming majority, the best investors are dead, or forgot about their accounts.  Buy, then hold.  Never buy with the idea that you will sell.

Read the Collins stuff: http://jlcollinsnh.com/
Read this nutjob's stuff: http://earlyretirementextreme.com/
Read this blog.

Keep expenses low, avoid debt, invest without greed.

You are wealthy, and you have a responsibility to act like it.  The opportunity is yours to be seized.

Here's a video from warren buffett, he invented the all you can eat buffet or something...

https://www.youtube.com/watch?v=mOS4wAsBnvM

If you make it through that and are not convinced, seek professional help, because literally the most capable investor the world has ever known is practically begging you to wake up and realize that the best available option for those of us that aren't going to go actually work at improving the companies we own is to just own all the companies and hope for the best.

[Cwadda]

But I love to follow stocks (my main hobby)

You should probably look for another hobby. Either that, or keep a "dinner party" fund available. Put $500 in there and stock pick so you can bullshit around with people at social events.

Everything else goes in low cost index funds.

[Much Fishing to Do]

I would like to make a decision by end of year as to what to do.

Slow down buddy, you very aggressively invested with (I guess given the heartbreak) most of your savings which is generally impatience.  Continuing to be this impatient in your attempted recovery is just gonna lead to more of the same high risk taking which will very likely lead to more losses.  I frankly like the idea of you focusing on paying off your loans so you see positive traction while more time passes and you get further away from these losses, the memory of which is gonna drive you to more risk in the attempt to quickly recover.

[talltexan]

I've been thinking about the following approach for a "fun trading" account:

Put 90% into bonds, something very safe and with a fairly high yield. The other 10% can go into something risky, like options on whatever stock ideas I get. The income from the bonds can gradually replenish that, but that way I get something that is moving every day, but also fairly sustainable. Thoughts?

[Scortius]

But I love to follow stocks (my main hobby)

You should probably look for another hobby. Either that, or keep a "dinner party" fund available. Put $500 in there and stock pick so you can bullshit around with people at social events.

Everything else goes in low cost index funds.

For an alcoholic, there never is 'just one drink'.

[boarder42]

you all realize this post is old right?

[DavidAnnArbor]

But the lesson is timeless.

[boarder42]

thats probably where people should be commenting not in his old thread about his gambling problem.

[gpyros85]

If it makes you feel better, I lost around $40,000, obviously less than you but I don't know if it was the stab in the back or the pat on the back but I was forced to sell due to margin, I had some naked put option to buy at low prices and I didn't have enough liquidity in the bank. The stock never hit those put options but it forced me to sell OTHER shares such as Suncor Energy at the lowest point $20, it is now almost $40/share....


I also had negative overall returns in the hottest bull market. Now I have a lot of cash because I am out of trading waiting to get back into the S&P and patiently waiting...

[electriceagle]

Consider it tuition. I think that most of us who moved from trading stocks to investing in index funds have paid it in some amount or another.

I myself traded stocks and options for many years. Heck, I even put together a project that combined video games on phones with a complex trading system (I come up with some dumb ideas!).

One day, I decided to compare the net worth produced by my work and research to what I would have made by simply buying and holding an S&P index fund. The results were about the same.

I didn't know what I was doing, didn't understand the complex stuff that I was attempting, and could have mastered another language with the time that I put in, without losing a cent. Off to index funds I went.

[Fuperw84]

Thank You for the opinions and feedback. I have been out of the stock market the last few months. Currently focus on paying off all my credit card debts. I will finish paying off all credit cards this month. My next focus is paying off my student loans ($137k). I will be paying $5,000 monthly starting in June. I will be getting back into stock trading but with major changes. I'm going to put $5k in Fidelity and make the best out of that starting fund. I made a promise to myself to never put a single dollar more into my brokerage account. The maximum risk I'm willing to take is $5k on individual stocks. Being a responsible adult involves having discipline and self-control.  Giving up on stock completely is too difficult for me, especially since I have too much interest and it's my main hobby.

[pbkmaine]

Thank You for the opinions and feedback. I have been out of the stock market the last few months. Currently focus on paying off all my credit card debts. I will finish paying off all credit cards this month. My next focus is paying off my student loans ($137k). I will be paying $5,000 monthly starting in June. I will be getting back into stock trading but with major changes. I'm going to put $5k in Fidelity and make the best out of that starting fund. I made a promise to myself to never put a single dollar more into my brokerage account. The maximum risk I'm willing to take is $5k on individual stocks. Being a responsible adult involves having discipline and self-control.  Giving up on stock completely is too difficult for me, especially since I have too much interest and it's my main hobby.

I was a financial planner for many years, and used to make a deal with clients like you: I would put 90% of their investable assets in index funds, and they could do anything they liked with the remaining 10%, including building a bonfire in the backyard and burning it. By actively trading stocks, most of them ended up burning the money just as thoroughly as a bonfire would, but 90% of their money was safe. If you can strike the same deal with yourself, you should be fine.

[Fuperw84]

Update: I relapsed this year and continue to trade in my Fidelity account. Fortunately, I remained disciplined and only lost $1,200. I'm finally done now after I bought 10,000 shares of Pulmatix (PULM) biotech stock and it plummeted 30% the next day on ZERO news. I a now convinced that the stock market is rigged and market markers are hiding behind the scene to manipulate and scam retail investors. I took a loss and withdrew everything out of my Fidelity account. I am completely done with stock picking. I created a savings account with American Express and any extra money is transferred monthly to this savings account. I have no extra money in my budget to trade stocks anymore. Today is Monday and I have not watched CNBC, Bloomberg or FOX Business news. I blocked all 3 channels. Today will be the first day in 4 years, i have not watched any business channel or looked at stock quote. I feel down and bored right now but I hope this feeling will go away. The first week of withdrawal from the stock market is going to be difficult. 

[boarder42]

Update: I relapsed this year and continue to trade in my Fidelity account. Fortunately, I remained disciplined and only lost $1,200. I'm finally done now after I bought 10,000 shares of Pulmatix (PULM) biotech stock and it plummeted 30% the next day on ZERO news. I a now convinced that the stock market is rigged and market markers are hiding behind the scene to manipulate and scam retail investors. I took a loss and withdrew everything out of my Fidelity account. I am completely done with stock picking. I created a savings account with American Express and any extra money is transferred monthly to this savings account. I have no extra money in my budget to trade stocks anymore. Today is Monday and I have not watched CNBC, Bloomberg or FOX Business news. I blocked all 3 channels. Today will be the first day in 4 years, i have not watched any business channel or looked at stock quote. I feel down and bored right now but I hope this feeling will go away. The first week of withdrawal from the stock market is going to be difficult.

i hope you're funneling money into an index fund not just a savings account.  congrats on turning off the stock picking but you need to get that money invested still. 

[Psychstache]

Update: I relapsed this year and continue to trade in my Fidelity account. Fortunately, I remained disciplined and only lost $1,200. I'm finally done now after I bought 10,000 shares of Pulmatix (PULM) biotech stock and it plummeted 30% the next day on ZERO news. I a now convinced that the stock market is rigged and market markers are hiding behind the scene to manipulate and scam retail investors. I took a loss and withdrew everything out of my Fidelity account. I am completely done with stock picking. I created a savings account with American Express and any extra money is transferred monthly to this savings account. I have no extra money in my budget to trade stocks anymore. Today is Monday and I have not watched CNBC, Bloomberg or FOX Business news. I blocked all 3 channels. Today will be the first day in 4 years, i have not watched any business channel or looked at stock quote. I feel down and bored right now but I hope this feeling will go away. The first week of withdrawal from the stock market is going to be difficult.

Seriously, seriously, SERIOUSLY stop what you are doing right now and go find a local Gambler's Anonymous meeting. If you have any hope of maintaining this 1st positive step, you are going to need support. Try this:

http://www.gamblersanonymous.org/ga/locations

[talltexan]

I'm also now out of all my individual stock positions. Some of them jumped up right after I sold them.

But when I log into my account, and see the index funds sitting there, knowing that I'm at zero in individual stocks creates such a feeling of inertia. Staying at zero really matters.

[Fuperw84]

I'm also now out of all my individual stock positions. Some of them jumped up right after I sold them.

But when I log into my account, and see the index funds sitting there, knowing that I'm at zero in individual stocks creates such a feeling of inertia. Staying at zero really matters.

What made you decide to get out of individual stock? I'm still struggling right now. I have a strong urge today to jump in and buy some GE and TSLA stocks. I'm resisting the temptation right now and not putting any money in Fidelity account. Going to go to buffet and eat to distract my mind. I wonder how long it takes for these urges to go away.

[Fuperw84]

The hardest part about completely giving up on picking stocks is admitting that I suck. I'm very ambitious and have always succeeded in my career. This is so tough to admit that I failed and give up on trying to win back the money I lost.

[boarder42]

I'm also now out of all my individual stock positions. Some of them jumped up right after I sold them.

But when I log into my account, and see the index funds sitting there, knowing that I'm at zero in individual stocks creates such a feeling of inertia. Staying at zero really matters.

What made you decide to get out of individual stock? I'm still struggling right now. I have a strong urge today to jump in and buy some GE and TSLA stocks. I'm resisting the temptation right now and not putting any money in Fidelity account. Going to go to buffet and eat to distract my mind. I wonder how long it takes for these urges to go away.

i got out 4 years ago - immediately put all my money into index funds.  doesnt take long to see they are out performing my pretty good stock picking.  the stress melts away -  i remember standing on a factory floor while i was supposed to be focused on starting up a line sweating on whether i should keep holding tesla or sell it - that was the end of 2013 i barely beat the market that year thanks to some well timed tsla plays. then i found this site and indexed.  no anxiety no stress from indexing you just dump your money in and forget about it.  I think you need to educate yourself it appears you still think you can "win" against the index - you may also need gambling help. 

[boarder42]

The hardest part about completely giving up on picking stocks is admitting that I suck. I'm very ambitious and have always succeeded in my career. This is so tough to admit that I failed and give up on trying to win back the money I lost.

this is a gambling attitude its why las vegas exists you have a gambling problem

[OurTown]

Same thread is on Bogleheads, presumably by the same OP.  They are giving the same advice, not surprisingly.

[koshtra]

Yay! $1,200 was pretty cheap, for a refresher of this particular lesson :-)

You're going to have to replace the activity though! That's your next task. Find something with roughly the same psychological intensity and reward pattern, but with less damage potential. Some hobby or harmless obsession. Frugality, say? Crushing your grocery bill, that sort of thing? Whatever. You can't afford a lot of boredom -- it'll suck you right back.

[Psychstache]

The hardest part about completely giving up on picking stocks is admitting that I suck. I'm very ambitious and have always succeeded in my career. This is so tough to admit that I failed and give up on trying to win back the money I lost.

super duper SERIOUSLY stop what you are doing right now and go find a local Gambler's Anonymous meeting:

http://www.gamblersanonymous.org/ga/locations

[talltexan]

I'm also now out of all my individual stock positions. Some of them jumped up right after I sold them.

But when I log into my account, and see the index funds sitting there, knowing that I'm at zero in individual stocks creates such a feeling of inertia. Staying at zero really matters.

What made you decide to get out of individual stock? I'm still struggling right now. I have a strong urge today to jump in and buy some GE and TSLA stocks. I'm resisting the temptation right now and not putting any money in Fidelity account. Going to go to buffet and eat to distract my mind. I wonder how long it takes for these urges to go away.

One of my work responsibilities is covering large companies who are customers of my employers. I listen to their earnings calls every quarter and consequently track the stocks, regardless of whether I would own them. It seems like any of them can fall 20% in a day with very little notice or reason. Saw that happen to enough of them (including one I owned), and I realized I was taking a lot of risk I didn't have to.

[hendrickj]

Stock picking should definitely be considered as an expensive hobby where you need to be okay with losing any money spent. I think Burton Malkiel compared it to horse races at some point. But similarly, it might not be for everyone.

[K-ice]

What made me decide to get out of individual stocks?

Just stop bying more.

I too had 100 % of my investments in risky oil stocks.

I forget the exact peek but think I have “lost” 80K since then.

Starting 2 years ago, after I found this site, all of my NEW investments are in ETFs.

I have not sold those stocks. But now they make up less than 25% of my portfolio.

I was never a trader & just bought & held onto these stocks. I will likely sell them once they are upto book value again.

One day they will make up very little of my portfolio either by my ETF contributions growing  (preferred) or by those companies going bankrupt.

Somehow I can’t bring myself to sell them today but I will NOT buy more.

Would that work for you? You need to start somewhere.

[DavidAnnArbor]

Maybe become a gamer where you can occupy your mind and competitive spirit in a fun way.

[Fuperw84]

I temporarily unblocked CNBC, re-allocated my budget to set aside $400/month to pick stocks and actually deposited money into Fidelity and Robinhood yesterday. Fortunately, I resisted temptation to buy any stock and went a long walk at the park. I ended up cancelling all deposits before 4pm yesterday.  I really want to throw $10,000 into bitcoin and Ethereum but have resisted all temptations to pull the trigger so far. I blocked CNBC again today and just going for long walks and reading to distract myself. This is my 3rd day with trading stocks. Going to counseling and gambler's anonymous is not for me. I'm trying to do it cold turkey on my own.

[RWD]

I temporarily unlocked my liquor cabinet, retrieved my daily four beers and a bottle of whiskey and actually set them on the table yesterday. Fortunately, I resisted temptation to open any of them and went a long walk at the park. I ended up putting the bottles back in the cabinet before 4pm yesterday.  I really want to down the whiskey but have resisted all temptations to put it to my lips so far. I locked the liquor cabinet again today and just going for long walks and reading to distract myself. This is my 3rd day sober. Going to counseling and alcoholics anonymous is not for me. I'm trying to do it cold turkey on my own.

.......

You need help, man.

[K-ice]

If you have $10,000 lying around throw it at your debt or get VTI & forget about it.

Why do you need to “win” the stocks back immediately?

That is not going to happen overnight & you will be dissatisfied.

Make a plan, spread sheet it, & you will probably see in 3-4 years you will have your money back with aggressive saving into Vanguard funds

[pbkmaine]

And here I am, happily retired, sitting by my pool in Florida with a paid-off house and a fat bank account, all courtesy of index funds.

[jpompo]

I temporarily unblocked CNBC, re-allocated my budget to set aside $400/month to pick stocks and actually deposited money into Fidelity and Robinhood yesterday. Fortunately, I resisted temptation to buy any stock and went a long walk at the park. I ended up cancelling all deposits before 4pm yesterday.  I really want to throw $10,000 into bitcoin and Ethereum but have resisted all temptations to pull the trigger so far. I blocked CNBC again today and just going for long walks and reading to distract myself. This is my 3rd day with trading stocks. Going to counseling and gambler's anonymous is not for me. I'm trying to do it cold turkey on my own.

At this point I hope you're trolling, because if not, yikes.

[boarder42]

Agreed I'm 50/50 on a troll here or Serious mental health problem. You're either a wildly impressive troll or have an insane addiction and need help.

[wenchsenior]

Serious question for the OP.  Are you taking any medications that are dopamine agonists for any mental or physical health reasons, by any chance?  If so, see your doctor right away about changing or getting off those meds.  Your thought and behavior patterns around stocks are clearly distorted, so if there is any clear physiological reason for this, you should address that first,  and then work on mental health and habits.

[Fuperw84]

I know that dopamine agonist and certain anti-psychotic meds can make you gamble and do other reckless behaviors. I'm a medical professional. I'm not on any meds though. Gambling runs deep in my family. I inherited the trait from my dad. What's separating me a little from him is that I know I have a problem and busting my behind off trying to get rid of this gambling addiction. The stock market is actually harder to give up than casino or poker because it so readily available. You can even trade on your phone! I am not trolling. Addiction to stock trading is as serious as heroine addiction in my opinion. I gave up smoking cigarettes (was a chain smoker) and it was easier than giving up trading stocks. I also post on gambling addiction and psych forums for tips to getting rid of this disease. Reason why I'm here and in other index forum is because I'm hoping to get advice and opinions from people who went through the same problem as me and succeeded.

[Fuperw84]

I'm not looking for sympathy. My main reason for posting here is simple. I'm sure most of you did not jump into index fund immediately. Most of you probable went through a phase in which you dabbled in stock trading or individual stock picking. I'm more curious to know how most of you managed to give up that urge and started indexing only.

[pbkmaine]

I'm not looking for sympathy. My main reason for posting here is simple. I'm sure most of you did not jump into index fund immediately. Most of you probable went through a phase in which you dabbled in stock trading or individual stock picking. I'm more curious to know how most of you managed to give up that urge and started indexing only.

Simple observation. As a financial planner, I saw countless people lose their life’s savings by thinking they were smarter than anyone else or had a “system” for beating the market. But the really smart people, the ones like the Doctorate in Economics from Oxford who ran the derivatives trading desk at his investment bank, had their personal money in index funds and retired rich.

[theolympians]

I'm not looking for sympathy. My main reason for posting here is simple. I'm sure most of you did not jump into index fund immediately. Most of you probable went through a phase in which you dabbled in stock trading or individual stock picking. I'm more curious to know how most of you managed to give up that urge and started indexing only.

Simple observation. As a financial planner, I saw countless people lose their life’s savings by thinking they were smarter than anyone else or had a “system” for beating the market. But the really smart people, the ones like the Doctorate in Economics from Oxford who ran the derivatives trading desk at his investment bank, had their personal money in index funds and retired rich.

For me, I never was in deep into the minutiae; though I knew saving for retirement was important. When I landed my fist job that paid well, I set it and forgot it. While "tempted" to play the buy-sell-quick turn around, I didn't indulge. People far smarter who could talk circles around me would try to convince me to do so; they tended to loose a bunch of money.

The kicker for me was my Dad. He invested to the tune of $200,000 in something "guaranteed" (to this day he hasn't told me what it was, I wonder if he knows) in the mid-2000's. When the crash hit he says he lost a boat load and cashed out (ouch!), locking in his losses. He then jumped to gold thinking that was going to climb through the roof. Well not so much, he is sitting on a pile of novelty coins he overpaid for, not receiving dividends.

What I am trying to say, there is always "the next big thing" out there, whether a style trend, or stock. Be careful what you invest in. Plan to stick with your investment as it will grow over time. Looking for the quick money maker smacks of gambling, as has been written here already.

How do you stop yourself? Don't eat the potato chip, you can't eat just one.