Slowly richer
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Slowly richer

My BIGGEST Mistake in Investing

If it’s too good to be true, it must be!

Photo by Morning Brew on Unsplash

I started investing with the Robo-investing platform called Wealthsimple, one afternoon when I was chatting with my friend. He informed me that he began to invest in ETFs, and he is excited to make a continuous investment.

I did not wait and downloaded the app right there and had created the app when I reached home the same evening. It was like a thrill to me to finally be able to put my money in the stock market and let it grow.

Long story short, after a few months, Wealthsimple launched its new “commission-free” product called Wealthsimple trade, and I downloaded it right away. My beloved Microsoft was my first buy. And then I bought an explosive stock Luckin Coffee “LK” on December 27, 2019.

Miss on Starbucks? No worries!

The only reason I bought Luckin Coffee was that I missed the price point of Starbucks Corporation. Seeing Luckin was making Starbucks run for the money, according to the news, in China made me join the destructive hype train. Initially, I started with 5 shares and saw my money increase right away, and I patted my shoulder for choosing such a fantastic company.

I should have read the documents

I ended up investing more than 800 dollars in the stock, and I was uber-bullish. I was planning to increase my ownership in the company even after Muddy waters were short for the LK stock. I made another mistake when I decided not to read the documents. I was following the heard as I was planning to hold the company for years to come.

One morning, I wake up to a whopping 80% drop in the share price. I shrugged that as a mistake/incorrect data on Wealthsimple trade platform and went forward to report it as a glitch. A few minutes later, my brother texted me that Luckin Coffee indeed fell 80%. I decided not to believe in him for a few moments before he sent me the screenshot.

I had lost a whopping 95% loss by the time LK was allowed to trade again…

Research before buying a stock!

Moral: Not every hot-stock are safe stocks, especially when you buy blindly before doing the research

Originally published at https://slowlyricher.blogspot.com on July 20, 2020.

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