Sunday, March 15, 2020

My brief foray into the stock market

So a few weeks ago I had a burning desire to understand the stock market, namely in the buying and selling of options. Like most people, I could sense there was going to be a huge downturn ahead due to panic over COVID. Since I know very little about puts and calls (short-term ways to bet on whether stocks would rise or fall), I tried out a simulator on Investopedia.com in order to educate myself. The Investopedia simulator follows the ACTUAL stock market, so whatever you invest with your fake dollars will reflect what you would have earned or lost in real time.

Within three days I made $20,000 off of my $3000 simulated investment. Full of bravado at this point, I debated whether I should start investing with actual dollars.

After a lot of hemming and hawing, I decided against it.

Why?


  • OBSESSIVENESS. Because during those 3 intense days of day trading, I found myself checking the DOW every 5-10 minutes. I had no life outside of this. While I was working, eating, or in the bathroom I'd check the market. I'd check it after walking the dogs a mile, before I walked them back.
  • EGO. I would start yelling every time my trades showed profit and scream "I'M A GENIUS!!!" at my husband in the other room. Mostly joking, but not really. I could feel my ego growing in sync with my Investopedia account. Who cares how insufferable I've become!? After all, I could be a bonafide financial guru!
  • DETERIORATING RELATIONSHIPS. My husband actually banned me from discussing the stock market with him after the first day. It was all I talked about. I don't think he's fully recovered yet.
If I was already this wound up after 3 days of pretend money, what was I going to be like playing with real money? For the sake of my sanity (and perhaps my marriage), I decided to drop the whole endeavor, and just stick to my regularly scheduled program of long-term retirement contributions.

I don't even know why I got so obsessed. I'm fortunate enough not to need the money desperately right now. Any money I would have made wouldn't have really changed our lives at all, since I would have never have bet huge amounts of money in the first place. But the bigger issue is: I just can't seem to play the market without becoming, in essence, a crazy person.

Maybe one day I'll be able to play stocks with detachment. As for now, I'm watching the day-to-day volatility with interest but staying far away.


2 comments:

  1. Congrats on your big win but think you made a wise choice. It is kind of like when you go to the dog or race track and make imaginary bets. You will win every time. Something goes wrong when you have actual money in the game.

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