You’re not going to be rich just by working your ass off 40 hours a week. You need to make the right investments.
I already turned 22 this year, which is a little disappointing because I’m not close to being a millionaire.
Dream big, right? Well, I dream to retire at 40 so I still have time to travel the world. If that’s to happen, I need to be rich pretty early on.
I graduated in 2015 and have been working ever since.
If I’d saved all the money I’ve earned throughout my 2 years as a laborer, I would have enough to buy a decent 2nd-hand car by now. Instead, I’ve spent the cash trying many kinds of investments that just flushed my money down the drain.
If you’re someone like me, and by like me I mean someone who is willing to risk a lot to earn a lot, read on to find out about my top 3 failed investments.
I invested in the Philippine Stock Market. Of course, I didn’t know what I was doing so I’d gone and lost P4000 over the course of 5 months. I would buy stocks of companies that I ‘thought’ are making good money. When their prices fall, I would panic and sell them at a loss.
I did read a lot about investing and also joined some FB groups and communities. But, I did not learn to control my emotions during the investment process. I also made unintelligent decisions because I did not bother to see the entirety of a company’s history to get an idea of where they are headed financially.
I bought high and sold low. I lost a lot.
I got it back, though, all thanks to $ANI and its steady growth. Purely by chance, I read an article about its price doubling because of assistance from the government or something (I don’t remember). I basically said “screw it” and bought thousands of shares of the company. Miraculously, my losses turned to gains in 3 months.
Yesterday, I withdrew all my money from my portfolio and will return once I know more about the stock market. For now, I classify it as a failure because I did not earn anything.
I also tried my luck with binary options as an alternative to investments. It’s different from the stock market in the sense that money moves much faster. It has its own set of unique and confusing rules, but I used an online platform that simplifies the process.
Basically, I would try to guess if the price of the USD would go up or down against a different currency. If I was right, I would gain money. If I was wrong, goodbye hard-earned cash.
I used a practice account first (like a free trial, with $1000 of play money). After a week of learning the ropes, I felt I was ready so I deposited real money.
I started trading the same day. Results come in every minute, and each minute is a chance to win or lose money. I was doing good at first, earning a few dollars per minute. After an hour of good trading, I upped the stakes.
That decision is something I still regret to this day.
My gains were wiped out in the next trade. Because the amount of cash I was putting on the line is bigger, the risk and the reward was also higher. I kept doing it even while I was losing. It went on until I had nothing left.
I lost P13,000 in one week.
No scams, just bad decisions. I was just guessing if the price is gong to go up or down. I did not use any of the analysis tools available because I did not know how to.
Sadly, I did not get back the money that I lost here.
One of my more recent investments is Bitcoin.
If you don’t know about it yet, I suggest that you do yourself a favor and Google it now.
To put it shortly, Bitcoin is a digital currency that got its value because a lot of people around the world agreed on it. I’m still not 100% what it is and how it works, but Bitcoin was worth a few dollars a few years ago, and was worth $2,600++ in 2017.
I was so late to the game that I don’t think I’ll be gaining a lot more with BTC. So I shifted my interest to the top 2 cryptocurrency in the market, which is Ethereum.
Like Bitcoin, Ethereum’s price depends on how much investors think it is worth. It also started in a value of a few dollars and has seen a huge price hike this year. As of writing, it is trading around $350.
Now, I’ve put in P20,000 into this new gamble, and so far I’ve already lost P7,000 because of multiple fees and penalties with erroneous transactions during the conversion process. I lost 7k just turning Pesos into Ethereum.
But right now, I’m hopeful that ETH’s price will still go up in the future and earn me some money. I’m already burned, but I’m waiting for a cure from the same fire.
Why I Keep Losing Money on Investments
From my experiences with the Philippine Stock Market, Binary Options, and Cryptocurrencies, did you notice the common thing that made me lose money?
That’s right. Not learning enough about them.
Ignorance is very costly.
Because I did not invest the time to learn about them, I ended up losing money instead. I could have read more news that may affect my decision when buying stocks, or making a trade, or purchasing digital coins. But I didn’t, and see how it cost me.
I write about my experiences as a warning to the young and impulsive people who are the most likely to spend their money carelessly. I believe with all my heart that the right investment will make you rich; but, putting your money on something just because of hype is a sure way to go broke.
My girlfriend tells me repeatedly that I don’t learn, but I already did. I already lost enough money, so I think it’s time to gain them back. I read more about things that I want to invest on, and I follow the news every day if I can.
Hopefully, I’ll still reach my goal of being a millionaire before 30.
Did you learn anything from this article? Do you have tips on how to make money, or at least on how to avoid losing them? I’m always open to new information, just let me know in the comments below!
Latest posts by Jerem (see all)
- Bloody Crayons Movie Revew: Don’t Judge a Movie by Its Title - July 17, 2017
- Spider-Man Homecoming Movie Review: The Younger the Better? - July 10, 2017
- My Day 2 – I Have No Money Left (I Wish I was Joking) - July 5, 2017