# Your noobie investing/trading stories



## xTr1gger (Jul 17, 2013)

Hi would like to hear some of this communities start up stories! 
it is said that everybody remembers their first trade. do you?
things like: 
What were you expecting it to be like, how did it actually turn out? 
what did you expect , what blind sided you? 
were you successful in obtaining profits?
experiences with brokers when starting up?
or
whatever you want to share


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## doctrine (Sep 30, 2011)

I bought Palm stock like some 13-14 years ago. That didn't turn out so well. I think I had some AMD too. That also did not go well. I had both their products and didn't really understand investing enough. Went back to the books, and it turns out, I'm _much_ better at investing in non-technology companies. I have yet to step back into a technology company.


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## daddybigbucks (Jan 30, 2011)

I worked in a mine when i was 21. I overheard a prospector at the next table that he found visual gold in his claim nearby the mine. I also overhead the name of his startup company.
I didnt think i had time to start up an account so i asked my father to buy $1000 worth of shares in the company for me.
The drill rigs were mob-ed to the site and the stock doubled. 
I asked my father to sell as doubling my money was unthinkable to me in a few days. My Father cautioned against this and said it could go 10x, but i was adament that i wanted it sold.
My father ended up giving me my money and "earnings" in exchange for him owning the stock. 
Of course you can guess, the stock plummeted after the drill results came in.
Luckily my father never brought that up again and he helped me pick alot of great stocks after that and i did repay the favour by getting him into bank stocks in the early 2000's.

Great idea for a thread.


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## KrissyFair (Jul 8, 2013)

My first actual trades were not very interesting. But looooong before that when my Dad was teaching me about the stock market we had this little wire notebook that contained our portfolio. This was back in the day where you had to look up the stock prices in the newspaper, and only once a day. I learned that if we had actually had the capital to buy that portfolio we would have retires to Necker Island before Branson got a hold of it. But alas, no capital, no gains


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## Oldroe (Sep 18, 2009)

I had made good money picking mutual funds for 12-15 years. New about high mer, front and back load and market cycles.

My reason for staying out of stock was my hobby tournament bass fishing. I did have some bank stock TD,royal. 

About 3 months before the tech crash I jump in with 50k most won in bass tournaments. 50k to 6k before I sold.


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## warrdogg (Feb 8, 2013)

I had no experience with stocks and was watching a few friends at work "investing" and making some big money. The year was 1999 during the dot com boom. I opened an investment account and bought $1500 of EDIG from a tip from my friend. The stock was bought at $1.50 and it climbed to $26+ in a few months. Since this was my first time investing I didn't know what to do. I asked my friend, where I got the tip from, and he said "It's going to $100." I decided to hold it.

Yeah I moved away for a new job and didn't have a computer to check my account. When I looked in May EDIG was trading at .26!!!! It taught me about greed and taking profits off the tables is never a bad thing. I had the best and worst story with my very first stock purchase.


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## Jon_Snow (May 20, 2009)

First big bonehead move was buying 1000 shares of IMG after some BMO talking head said to buy it. Taking a nice bath on it. Lesson learned.


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## james4beach (Nov 15, 2012)

My first stock trade was a purchase of Ballard (BLD) in Aug 2004. It happened the usual novice way ... I liked the sound of it, but didn't check business fundamentals or financial statements. I also didn't know how to interpret stock charts.

I watched it go up a bit - exciting! Then it went straight down. I sold it in May 2005, *right at the (short-term) bottom!* for -52% loss. Here's a chart of my experience








As I learned more about stocks and trading I learned just how typical this kind of experience is: buying into a weak stock (because you think it's "on sale") and then eventually selling out at the worst possible time. Now that I know more, I can see how that BLD chart was very bearish... you simply don't buy into charts that look like that (below its 200 day moving average, making lower lows, etc).

And it's just amazing how Mr. Market gets novices to buy or sell at the worst possible time. This is no accident or coincidence.


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## Hawkdog (Oct 26, 2012)

doctrine said:


> I bought Palm stock like some 13-14 years ago. That didn't turn out so well. I think I had some AMD too. That also did not go well. I had both their products and didn't really understand investing enough. Went back to the books, and it turns out, I'm _much_ better at investing in non-technology companies. I have yet to step back into a technology company.


I bought 360 networks about the same time, lost it all. Still sits in my account as a reminder.
Not long after I did buy Telus for 19 bucks in the Wife's account, also seem to make better decisions for her than myself.


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## baker3232 (Oct 7, 2011)

First buy was the modem company Gandolf technology for .85 a share and sold it in 8 months for $6.75,and thought this is easy. Watched it go to $18 plus than nose dived and disappeared. Lesson learned, you can never pick the top. Buying is a lot easier than selling.


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## Xoron (Jun 22, 2010)

Buying 500 shares in the company I worked for. Even got the paper stock certificate 

Small amount of $ by today's standards, but a small fortune for me back then. Ended up selling it at a 80% discount to what I bought it for 5 years later. Lesson learned (and backed up after seeing Enron): don't invest in stock where you work. When things go off the rails, it's a double whammy.


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## dubmac (Jan 9, 2011)

Best move: Buying Teck TCK.B in March 2009 for $4.00.
Worst Move: Sellng Teck TCK.B in June 2009 for $18.00! - it went to 62 in Jan 2011


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## My Own Advisor (Sep 24, 2012)

I bought a bunch of VVI, over 10 years ago, when I heard this penny stock would take off. 

Check out the chart of Valencia now....ugh....
http://web.tmxmoney.com/quote.php?qm_symbol=VVI

I keep some shares of VVI to this day, to remind never to invest in penny stocks again. I never have


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## indexxx (Oct 31, 2011)

One of my very first stocks was Mela. I'd read something about it, someone's recommendation. Sounded great- new skin cancer diagnosis machine! Think about all the fear around suntanning! Can't fail!!!

I bought in around $6.00. Now it's at 94 cents. Like My Own Advisor above, I have a handful left- like an alky who keeps a bottle in the house as a reminder.


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## Toronto.gal (Jan 8, 2010)

indexxx said:


> One of my very first stocks was *Mela*......I'd read something about it, someone's recommendation. Sounded great- new skin cancer diagnosis machine! Think about all the fear around suntanning! Can't fail!!! I bought in around $6.00. Now it's at 94 cents.


When did you buy MELA, and at the time you bought, what had been the ** 52 week low/high? ** How long were you following the stock before you bought? Whose recommendation did you follow, I mean what sites were you reading, Seeking Alpha, FDA? This and other device/pharma type stocks are not like buying GE or JNJ, hence a lot trickier, especially for a new investor, so I would never recommend anyone start with speculative small caps of any sector, as these are nothing but roller coasters, and as volatile as a penny stock, even if not in the literal sense at the time you purchased, so the trick is to buy it when the downside potential is as low as possible.

MelaFind, a computer system that was created to aid in the detection of early melanoma, first came to my attention in 2011, when I was still a fairly new investor [2 years]. I recall seeing it in the mid $3's the 1st time, but I did not buy until it fell just below the $2 range. I ended up selling about 1/2 my position on the very day it received approval from the EMA on Sept. 7th for $3.55, or about 85% profit [$1.92/$3.55]. I did many short-term trades as well in the interim to reduce my initial investment.

Though the EMA approval should have given me confidence that an FDA approval would follow, because it was not a guarantee, I had sold 1/2 my position, and of course, it did shortly after receive FDA approval, and stock rocketed to $6+, **so that is why I had asked you when you bought at $6**, because if you did so after the EMA/FDA had already approved it, then that would mean that you bought the stock, not only high, but late in the game [late for a 1st time stock anyway]. Anyhow, I ended up selling the balance of my shares & stayed away while I saw the price gradually decline, but earlier this year, I bought a position for under $1 with the profits made in same stock, so this time I'm holding for long-term. 

I have seen time and time again, that even after FDA approval, lots can still go wrong, so I prefer to take my profits [keeping a % of shares if purchased low enough], and wait for new positive developments/entry price.


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## Toronto.gal (Jan 8, 2010)

My Own Advisor said:


> I keep some shares of VVI to this day, to *remind never to invest in penny stocks again*. I never have


I think most of the painful penny stock stories come from people who invested large amounts, so the latter would have been the bigger mistake, not the stock per se, IMHO.

As for never investing in penny stocks, how about in stocks that did not start, but fell into penny category instead? And once an experienced/successful investor, with a bit of money that you could afford to lose, why not give it a chance? If you purchased 1,000 sh @ $.20 cents as an example, would you lose sleep over $200? :biggrin:


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## physik3r (Sep 10, 2012)

Interesting... I work at one of the big 3 telcos and I definitely take advantage of the share buying program here. I guess it depends on the business you're working for. With all that it happening in the TV market and with Verizon on the horizon (see what I did there?) I might have to reconsider at some point..


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## eulogy (Oct 29, 2011)

This was before I really new anything about buying stocks. But when I was 15 or 16 I was taking a business class in school and I just got interested in stock stuff. So my dad said lets go to the bank and get some. I'm not sure where my dad got the idea of the stock we bought, but it was a funeral home company that had locations all over Canada, the US and the UK. They were having debt issues, but they owned a lot of land, so we thought it would be okay. We didn't buy very much, I think maybe $500 worth.

I would get my quarterly report in the mail and it was a magazine sized document telling me how the company was doing. I believe in a year or two it was out of business. I think the stock's high when owning it was the price we paid for it. It was all down hill from there.


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## PatInTheHat (May 7, 2012)

It's taken me years to recover from my first trade and biggest mistake. Bought a biotech stock on a tip from a friend. 

-35K


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## My Own Advisor (Sep 24, 2012)

@T.gal,

You raise a good point, taking some chances on a flyer. But, unless I have $$$ to burn, which I certainly don't, I won't invest in those things (penny stocks). 

The way my brain works now....where can I invest a few hundred bucks smartly so that it pays a dividend? 

Currently working on saving up my next $1,000-$1,500 to invest in more dividend payers.

I'm no fun when it comes to risk, I know


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## Toronto.gal (Jan 8, 2010)

My Own Advisor said:


> @T.gal,
> 
> 1. I'm no fun when it comes to risk, I know
> 2. Currently working on saving up my next $1,000-$1,500 to invest in more dividend payers.


*1.* Believe me that I take very conservative risks, and by that, I don't necessarily mean stocks, but risk management.

My point had been that some investors blame their failure, risky behaviour, or psychological trauma if you will, on the investment itself, when in fact, they have to take FULL responsibility for having wanted to make big & quick $$$ with little ER [effort & research] on their part/invested too much/been greedy/having believed a colleage/friend, family member, etc., etc. If someone buys at an all time high, and then the stocks correct, whose fault would that be? Those that bought FB for $40+ on the day of the IPO, for example, believing it would hit $100+ on the same day, would have had little to smile about yesterday; FB's fault??!! I have yet to see an IPO that has not dropped big time days/weeks/months later. 

As well, my point had been that for those itching to take high risk on a stock they know little or nothing about, could still, IF lucky, make that 5,000%+ return they dream of, but without losing sleep, and with very little risk.

If one believes/hopes/prays that a $.20 cent stock could hit $10 [5000% profit], then, best case scenario = profit of $9.8K with 1,000 shares. Worst case: burns $200. If successful, even with a 1000% return of $2K, the next speculative investment could be done using those profits, and then the risk taken could be higher, ie: buys 2,000 shares @ .40 cents [which would have still left the investor with $1,200 in his pocket from his initial success]. 

We all make mistakes, but those who lose the most would have made more errors than simply having picked the wrong investment.

*2.* I have no doubt that you'll reach early freedom with your strategies!

***************
My newbi mistakes were essentially 2 stocks that dropped big time after I purchased them in 09/10: MFC/RIM, but later on, both were among my best performers for having bought almost at a year's low.

As well as a long-term investor, I am a trader; do I profit every time, NO, but my losses are always minimal given my risk strategies, and when adding the + with the -, I'm on the + side.


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## xTr1gger (Jul 17, 2013)

These are all some great stories! keep em coming! lol
i'll have my own start up experience for you guys in a month or so (starting a new job, will invest/trade non-essential money)
just sitting here right now watching the stock i wanted to get into last week start to climb, makes me want to get into the market faster ( 40+ hours research on the 1 company. analyzing financials and all that jazz)
but..... must be disciplined...  moving soon and need the left over cash for a safety net XP


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## Toronto.gal (Jan 8, 2010)

xTr1gger said:


> These are all some great stories!


Some great lessons for sure! I especially liked posts by wardogg/J4B/DBB/Baker.


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## marina628 (Dec 14, 2010)

Bad stuff was mid 90s buying bad penny mining stocks and Bre-x lol.Good stuff was buying Amazon in 2001 for less than $20 a share , just sold my last about a year ago and had to pay taxes on $60,000 it was that good 
I have to say my GRPN plays this year is what I am most proud of even though half the forum was praying for me .I said I was buying at $7.00 and going to sell at $11.00 ,added a j/k so some of you would not stress but I did buy 3000 shares at $7.00 ,I am not sure if i will stay in til $11.00 but sitting on a decent 35% again :chuncky:


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## marina628 (Dec 14, 2010)

BTW my $8000 RSP contribution of 1995 went to $2000 but I cant even remember the crap I bought lol.Buying fts every year was a no brainer but had I not grown up in Newfoundland I probably would not have done that.I just got back from Newfoundland a couple weeks ago and everyone is going crazy on VALE because of the big drop.Didn't buy yet but the newfies are starting to load up lol


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## blin10 (Jun 27, 2011)

learning that VXX doesn't move exactly like VIX, was -10k because of that...


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## Eclectic12 (Oct 20, 2010)

Setup of the brokerage account took about forty minutes.

Wanting to learn the ins/outs of trading - I bought a Vancouver media productions company, a medical Diagnostic services company, Corel and a software maker. 
The software maker went bankrupt & some of it's assets were bought by Open Text. The other three, after paying the $29 commissions - made between 15% and 55%.

I could have made more by selling earlier but I was still getting used to the trading system.

I was amused when I was invited to join the Corel lawsuit as I sold most of my shared before it dropped, bought a similar amount after the drop & sold out everything for something around a 2x gain.


Cheers

*P.S.*

Since then there have been lots of advantages (ex. internet access trading available at work) and disadvantages (could not sell for a profit as I was stuck in meetings or was without internet access in Europe).


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## Islenska (May 4, 2011)

There is a geologist retired here who was in the ground floor of Bre-X at like $0.40 and sold making good money in the $2.00 range.

He got out because liked silver better and wasn't keen on gold then. Now always says "Coulda made amazing money then but it also all went to zero"

Must of been a woulda , shoulda story for him.


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