Saturday, February 28, 2009

Greed is not good

If you have dabbled with stocks or are still invested, absorbing paper-loss at this point, you should be able to relate to this story.

The stock market is not for the faint-hearted. If you could not swallow volatility, better stick to other instruments. While stocks have the potential to generate an obscene amount of cash for savvy investors, a wipe out of one's nest egg is not uncommon.

Last year, I was able to pull the plug early enough to avert any loss. It was not a perfectly timed exit though, as I saw some of my stocks rise shortly after I unloaded. Had I stayed invested, I could have made another 10% killing, at least. As my stock broker friend would always say, "you should never look back." Luckily, I did not and went my way to cash in my chips. The market went on a free fall in next to no time.

A social contact, several years my senior, was unfortunate to miss the mark. She lost millions on a particular favorite, speculative stock that we both invested in. I sold after gaining more than 400% while she held on. Now, she is whining when she could have been smiling.


Mercblogger said...

Are you a Filipino?:)

Prodigal Son 35 said...

hi Mercblogger,

yes, i am pinoy. regards

Stacy said...

You have a cool blog too!!!!

Prodigal Son 35 said...

thanks, Stacy. appreciated.