Hello, everyone. I posted about this high-risk trade yesterday and would like to follow up with a few critical comments. This stock is traded only on the over-the-counter market and on just one!! small exchange. This poses immense risks, as such securities are NOT admitted to trading on the regulated market. There’s always a risk of market manipulation. Liquidity is low, so spreads can be very wide, which poses an additional risk. The companies are subject to very few disclosure requirements. This can go very wrong, and you won’t be able to get out of these stocks anytime soon. I read the article in the Handelsblatt yesterday and wanted to see what would happen; less than half an hour later, I was in at a price of €3.70. By evening, the price had indeed risen to a peak of €6.40. This
morning, I watched as the price initially remained stable at that level until a large trade pulled it down to 4.20. After that, it went back up, and I sold just before noon at €5.75. You can make well over 50% in 24 hours... I knew what I was getting into and did this with money I could afford to lose entirely. Gambling or trading should always be done only with amounts that won’t put you in a bind if they’re lost. It went well this time, but next time I won’t post about it because of the potential risks.
Why am I spamming you with this?
We have a truly great community here with invaluable input. Many suggestions for short-term trades have been top-notch lately; I’ve happily copied a few of them with mostly successful results. Thank you so much for that!!!
However, I also found the post by @value_visionary_2935 Vegan about his experience with $BYND (-3,5%) really resonated with me and gave me pause. Many young people who haven’t been investing for very long see quick, high profits in posts like these and feel encouraged to do the same. And when things don’t go as planned, a relatively large amount of money is simply lost—money that could have been used for long-term wealth building. Well, as long as the right lessons are learned from this, it’s helpful. If it goes like this… “It didn’t work out this time, so next time I’ll increase the stake to make up for the losses I’ve already suffered”… and it goes wrong again, that’s when things really start to go off the rails. As much fun as trading is—and sharing both the successes and the losses—the latter tend to be overlooked. Yes, everyone is responsible for their own actions, and the market does indeed offer many opportunities right now if you know what you’re doing. But there are also other times, and then things like this can really backfire.
The oft-repeated saying that the stock market isn’t a sprint but a marathon isn’t without reason.
Think carefully about what you’re getting yourself into and don’t be too greedy. If you do want to take risks, set clear exit strategies and limit potential losses. Yeah, “If only I’d stayed in, then…” has no place in trading, in my opinion. It’s better to be satisfied with 20 or 30% and put that profit in perspective—compared to, say, an apprentice’s salary. Not setting a stop-loss is just as bad. Of course, don’t set it too tight, or you’ll be out faster than you’d like. Define exactly how much you’re willing to lose and, when in doubt, stick to that limit.
Otherwise, forget about the dream of getting rich quick; be humble and modest, and take joy in small successes and moderate price gains over the next few years. In the end, you’ll have more than many others to fulfill a wish or two or to look toward your financial future with greater peace of mind.
Long-term wealth building should be the goal when you’re young; there are many valuable suggestions and examples here, as well as people who’ll share their approaches with you—things you can incorporate into your own thinking to achieve success.
And if Grandpa isn’t dead yet, he’ll just keep rambling on… but I just had to get that off my chest somehow.
Maximum performance to us all
