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How to lose $100,000 stock market trading more i did this i lost $100,000 in one year in one year in the year 2015 i lost $100,000 in the stock market i don’t explain you guys exactly step-by-step exactly how this happened and this is a story i’ve shared once or twice in the history of this channel before and you know so some people may say why you should why are
You sharing this again when are you share it in the past some of my loyal subscribers that have been there for a long long time well since that time the channels got millions upon millions of new views we’ve gotten you know 50,000 75,000 new subscribers since the last time i shared this story so i think it’s really important because it’s a story of greed it’s
A story of losing confidence it’s a story of going so far off the rails so far the other way and things like that like i have to share this and i feel like i’m fighting the good fight i feel like i’m the only one talking about this how come everybody acts like everybody in the financial landscape acts like they never took a loss before like they’ve never made a
Mistake and so i either look at this three ways well one you could just be a perfect little angel you never ever make a mistake you never have gotten caught into anything bad maybe that’s possible maybe a little perfect angel okay the other thing is maybe maybe there’s something you’re hiding maybe you have many mistakes you just you choose not to talk about it
Because you think you’ll like lose credibility or something like that so maybe you choose not to talk about it or maybe you’re just so young that you haven’t even in the game long enough you just talk about this stuff but you haven’t really made any mistakes yet which could be the third way but you know we got to kind of discuss that for a second like like why do
People never share this stuff have they never made a mistake or are they hiding things or they’re just too young to have made a mistake well i made a big mistake in 2015 i lost 75 k of my own money okay i lost 25 k of my wife’s money so we lost a hundred thousand dollars in total in one year in one year in a 12-month span a hundred thousand dollars loss how did
This happen and for someone that had done so well in the stock for so long how did all sin i go so far off the rails i’ve been looking at the stock market in 2008 i got into the market so 2009 i done phenomenal every single year and also in 2015 comes and i lose $100,000 like it would have been crazy if i just happen to not make any money that year based upon how
Well i did up to that time but to lose a hundred thousand all this like this doesn’t even make sense how in the world did this all go down and how did it go so far gone well step number one to losing a hundred thousand dollars in a year well we can say step number one which we won’t count as step number one but you’ve got to have a good sum of money so they even
Lose a hundred thousand dollars right you can’t just like magically have no money and then lose a hundred thousand right you’ve got to have some money so we had money because i’m a saver and i’m an investor i’ve done phenomenal marcos year after year following a long-term little tape holding philosophy which i’ve shared on this channel many times i have courses on
A books on and all that type of stuff looking at a company’s a balance sheet holding them for anywhere between one in five years you know kind of viewing that type of process taking good profits when i get them things like that so i have this philosophy build up money i have money so step number one you need to do after you have the money is you need to quit your
Job okay you need to quit your job this is what i did i quit my job at kwik trip which i was working at at that time out in the carolinas if you guys know anything about my story i started with kwik trip as an overnight manager it out in the arizona division i did well with the company got promoted i did well enough where they thought i couldn’t move out to the
Carolinas to expand that division and teach people and train people and all these kinds of things so i move out they’re doing very well for myself i quit my job we had our first son i was just kind of done with quick trip and i wanted to enjoy like my son’s first year life okay now the way this was a bad decision is i quit my job which was my only income source
This is way before any jeremy you see today with all these different income sources and things i got now right back then they had one income source okay that’s another reason why i tell you guys you need to have you know two three income sources doing things online whatnot but back then i had one income source i quit my job didn’t have any income source meaning
I was living off savings but that’s okay because we’re expenses were low i had a lot of money saved away and my wife as well we’ve done well in the markets and i thought i could keep doing this well well the problem was i quit the job and also and when you quit a job also you have a lot of time on your hands you have a lot of time think about it i was spending
48 to 50 hours a week working at kwik trip as a manager okay i was spending massive amounts of time in the stores i mean at least 50 hours a week right so i’m spending all this time nelson i got all that time free an extra 50 hours a week right and also i starting to like think like a lot more i have all this extra time where i can just think and think and think
And also and i’m starting to like second-guess myself oh man maybe that maybe i didn’t make the right decision here maybe if i did such a such amount of return maybe that’s not gonna be enough maybe there’s a way it can amp up my returns or something and i start kind of thinking about all this and i start kind of like you know i wouldn’t call it panicking but also
And i would start like having thoughts every day like man am i really doing the right thing and then i would have all this free time like maybe i should be trading more often maybe i can trade more often things like that okay so what my brilliant horrible idea was is i ended up doing something i knew to never ever do i knew to never ever do this and i did it and
What i did is i opened up what’s called a margin account okay a margin account so basically i could invest money that wasn’t even mine so basically if i had $1.00 in my account i could invest an extra dollar okay so you’re basically taking out debt okay you’re taking out debt to invest more money so let’s say you’ve got an account with $200,000 hypothetically also
You can invest in extra $200,000 and also now you have $400,000 in the market okay now this can work phenomenally if every single stock in the short term goes the exact way you need it to go okay but keep in mind one of my i’m a longer term investor the stocks i go into a lot of times in the short term they go down like 50% of the time in the short term at least
Stocks i go into they actually go down where i make my money is that i buy even more shares when they go and then over the long term as long as i made a good decision that company they go up in 95 plus percent of time i make money okay well the issue is when you have a margin and you take out massive amounts of margin also you get what’s called margin calls where
Either you’re forced to sell shares or deposit more money well remember i told you i quit my job i didn’t have any fresh money to put it in my accounts i didn’t have any money where am i going to get money from i had no income sources so awesome i start getting margin calls because sometimes shares wouldn’t go the way i wanted to go by the way another part is when
I start the margin account it was like i don’t just do just do like a 25% margin and then also now we get up to 50% and also in their greed start to come in and you know i might make $10,000 in a day and i’m like let me do 75% more money in here and then also they got to a point where i was i was literally going dollar for dollar okay meaning i had no room for the
Shares to go down at all and guess what happens sometimes those shares went down in the short term i’m not a short-term trader and this made me start to have margin calls sell shares had bad prices that i didn’t want to even sell the shares but i was forced to because a brokerage would force me it’s either you deposit your money or you sell your shares so i would
Sell in all sin guess what happened my accounts they would start to go down and down okay down and down now and then what ended up happening is a really bad thing when you start to lose more and more money in your account start to go down and down and down you’re taking out margin all of a sudden you feel like i need to be a hero now now i need to make even bigger
Gains to try to get my money back up right and you start chasing your bets it’s what is if you’re an addicted gambler gambler it’s what they call chasing your bets okay when you chase your bets basically means you’ve even let’s say you made a sports pad okay on the on the baseball game you lose that battle so yeah i just lost 2009 let me try to bet $40 in this next
Game so i can make my money back also you start trying to go bigger and bigger and bigger and that’s what happened with me with the margin i was just trying to go bigger and bigger and i got into riskier and riskier companies and started doing more and more short-term activity to try to get those accounts back up but the problem was it wasn’t working out what ended
Up happening is my kept going lower and lower i’m not a traitor i’m not a short-term trader i was trying to do things i had never done in my life and that i’m completely unsuccessful at okay i went from being someone that was extremely disciplined okay investing companies for a long term when they dipped i would buy more shares i would never invest on debt which
By the way when you take out this debt you have to pay interest on it okay we’re talking about my interest rates i had a pretty big account so i would think i had to pay like 5% which isn’t that much in the margin account land right because i had a bigger account but still think about that you would have to get at least 5% a year just to pay back the margin so
You need to get these you know unbelievable returns to get up to that point well when you’re losing more and more money and your counts keep going down and down you keep trying to do all these short-term activities and it’s like it’s like digging yourself in a bigger and bigger and bigger grave and that’s exactly what i was doing and then next thing you know when
It was all said and done when 2015 was thinking in october see this september of october i think it was september of 2015 so mind you i lost all that money and it wasn’t even throughout the full year okay this was at september 2015 i believe it was i sold off everything as far as my margin account went what i have left in there i sold off everything in my wife’s
Except for her retirement account i put her entire week which this was a crazy idea to put her entire retirement account in the wind resorts that obviously paid out in a huge way but that i still would never ever recommend that to anybody that you put an entire retirement account into one stock but basically we sold off all the stocks so we lose a hundred thousand
Dollars in an eight nine month span and from there what i end up having to do is i was like i’m either gonna have to get a job or start a business and so i started my real estate marketing company i got that going got that off the ground and it was a crazy time and i would call the worst financial time of my life what is in january 2016 okay so all literally two
Years ago today i was in the worst financial situation i had ever been in as an adult we had no income because i was just getting my real estate marketing company like i got the idea to start in september 15 i bought the equipment but i didn’t have any customers it took me at least a few months to start getting customers and i just remember january 2016 being them
The worst time financially in my life ever and it’s crazy how it all went down in it’s crazy that in that january 2016 i start a financial education channel it’s crazy like sometimes the worst situations you could ever put yourself in which i did i put myself in an absolute disaster of a situation sometimes the best thing ever could come out of that in the financial
Education channel which is the best thing i ever did for myself ever in my life as far as on a financial you know not just on like like how good i feel on the inside nowadays but like obviously financially like i make dramatically more money i mean i’d probably make more money in a day now than i used to in a week at quiktrip and i did well for myself a quick trip
So the feeling i get on the inside for all these people i help out which just teach them how to invest and also teach them the bad stuff to stay away from okay and stay away from the thought process so you can kind of understand yourself when you’re slipping into some of these things you’re starting to chase bets you’re starting to think greed you’re starting to
Marge now you’re starting to invest money that’s not even yours which i get a lot of people that say this type of stuff all the time they say hey jeremy i’m thinking about you know taking out a reverse mortgage or something on my house to invest more money or i’m thinking about trying to get my retirement money that i built in my company and investment myself i say
Man that’s really risky stuff guys especially when you’re doing debt and you’re investing and you’re trying to do short-term in nature things which those are really short-term in nature those are highly highly risky you don’t want to make that mistake i made in 2015 because it’s not always gonna work out it might not work out for you like it all ended up working
Out for me okay it all ended up working on the end but that doesn’t mean it could have ended really badly it could have ended up like you know like go work at a job you know job making 50 60 ke like i was done new at quiktrip right and that’s my life and it takes me years and years to build back my accounts to what they were like it doesn’t always work out the way
You you wanted it to or what not it happened to work out for me that doesn’t mean it would work out for you so don’t ever think like oh i could take this risk it’ll just work out and i’ll just make all this money in the future it doesn’t we work out that way guys so um you know it’s one of those stories i just i have to share i have to share it it’s important it’s
Important part of my story i feel like it’s just an important as all the success as everything that’s coming to me over time it’s just an important story to me because i’m you know it it tests your character when you lose that kind of money when you make those kind of mistakes when you go against everything you built in everything you believe in you know it tests
You as a person in how you treat others at during that time and you know what your mindset is and things like that guy so don’t ever make those kind of mistakes i like i made just stay away from margin accounts if you’re gonna quit your job like make sure you got at least some other income sources in there that are gonna help you out like you know quitting your job
And having no income it’s a highly risky thing make sure you got something going on the side or what not for at least some income and you know don’t panic when you think i can’t get to this amount of money in such an amount of time because that’s just going to put short-term pressure on you make you make the short-term decisions if you make a bad decision and you
Make a bad mistake right in the markets weren’t investing like don’t think i just need to chase my bets and try to make that money back as quickly as possible because that could end up you you might end up actually losing more and more money if you do that guys so anyways hope you enjoy this thank you for watching and have a great day
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How To Lose $100,000 Stock Market Trading By Financial Education
