Very, very, very bad trading!


The following posting was pointed to me. I think it originally came from Craig’s List. The poster’s moniker was CaReFulInVEstOR.

$130,000 saved up and I have follwed Robert Kiyosaki (Rich Dad) and he said Silver was going to run and the market wasn’t a safe place, so In Feb of this year, I put it all into silver at $21 an ounce. It dropped to $16.50 an ounce in March. I lost $30,000 in that move so I sold it out since I couldn’t take the losses. Then everything started getting crazy and I read more artacles that said there was a silver shortage and put my $100,000 in to silver at around $19 an ounce in July. It is now around $11 and I only have $58,000 left and I don’t know what to do. I lost over half my money just this year in silver. It was my life savings. I owe $160,000 on my house and that money was everything I saved up so now I have nothing.

I won’t make any judgements on Kiyosaki’s call because I didn’t see it or read it. That is completely beside the point, in any case. This person acted incredibly foolishly - as greed will often make people do. Check out the screen name. Careful Investor? Not so much.

Risk Management!  Risk Management!  Risk Management!

If you like this post or find it informative, I encourage you to sign-up for the newsletter.

Also subscribe to the blog feed and/or follow via Facebook or Twitter.

About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
** See John’s full bio.

RhodyTrader on Twitter Counter.com 

Similar Posts:


  • http://blog.mdwoptions.com/options_for_rookies/ Mark Wolfinger

    Foolish – of course.

    But Robert Kiyosaki (Rich Dad) is a motivational speaker, not an investment advisor. He tells you what you can do (it’s all nonsesne) if you only follow his tips.

    Anyone stupid enough to follow his advice gets justified results. Yet, my heart goes out to this guy.

    I don’t have the reach that Kiyosaki has (nor is it even close), but I’m careful not to give specific advice – for fear of those who may follow blindly.

    Good post. Important stuff – and a big warning.

    Best regards.

  • http://financialphilosopher.typepad.com/thefinancialphilosopher/ Kent @ The Financial Philosopher

    You bring up a larger point: Where do we get our information? Does the source of our information have altruistic motives or is it trying to sell something?

    Most media sources make noise to steal our attention and push our emotional buttons, with the ultimate motive of selling advertising. Kiyosaki is not different. He essentially makes noise to sell books — not to offer advice.

    For this reason, I do not subscribe to any magazines, newspapers or cable television. I read books (not written by Kiyosaki)!

    “He who establishes his argument by noise and command shows that his reason is weak.” ~ Michel de Montaigne

  • Eric Lam

    I found that RK first publicly bullish about silver and gold in the Yahoo column on 20 March, 2006 ( http://finance.yahoo.com/expert/article/richricher/2987 ). Spot silver closed at 10.29 on that day. Silver has briefly run against 10.29 from 13-29 June 2006 for a period of 13 trading days, reached as low as 9.44.

    Silver has yet run against 10.29 since then, period.

    Who’s to blame?

    Here is the weekly chart of spot silver: http://farm4.static.flickr.com/3109/2872137315_9816d73211_o.png