The chart above shows the rise and fall of Bitcoin, the virtual currency. Before you think of plunking your money into Bitcoin or any other risky trading, learn these 10 lessons from inventor Chris Norstrom, who says he could have made $US128,000 in Bitcoin but instead lost $US1500.
The mistakes he made are the same things that cause investors to lose everything: following the “I need to get in on this quick or I’ll miss out” herd mentality, trying to outsmart everyone else with timing when to sell, making minute-by-minute adjustments, letting his emotions run his decisions and thinking only in the short term. Chris ends his story and lessons, however, thinking on the bright side and of his parents’ sacrifices trying to escape communist Bulgaria:
But you know what… I’m not angry. Because at the very beginning of this journey I only risked the amount of money I was willing to let go of. $2k. And I only lost $1.5k anyway. Life goes on. I am a bit saddened by missing out on $100 grand (anyone would be). I could of really used that $100k to make my life better (anyone could have). But then again… I think of what my parents went through and I feel a bit better.
It’s a very worthwhile read for anyone thinking of investing in the stock market.