Trying to Outsmart The Market – An Experience

Leveraged market trading can feel a lot like Russian roulette. Amplified returns and amplified losses. Being brazen and risk taking and arrogant enough to think I could outsmart the market I was quickly drawn to the prospect of huge returns without the patience required by conventional investing. After only a week using a simulator account without much success, I opened a trading account and let loose with £500 of real cash. Close to the bottom I presumed in the aftermath of the Ukraine war, I went long on the FTSE 100. I was a day early and got margin called for taking too large a position. Had I waited a day longer I would have plenty to go on.

There are many rules to follow as a trader. If something looks too easy then it probably is. These rules must be applied with nuance. A stock like NVIDIA has gone up vertically and while its results may be impressive and the AI narrative compelling, the fundamentals cannot justify the price.

The market will cause the most pain to the most people. That’s the rule. Especially if you are a retail investor (the little guy).