Toronto man Matt Sibley first became interested in trading when WallStreetBets’ short squeeze of Gamestop made the news. Like so many others, Sibley was captivated by seeing regular people like him go up against giant hedge funds and end up walking away with millions. He spent the better part of a year reading up on the stock market, raising capital working as a dishwasher at Chipotle, and patiently waiting for the right time to buy in. That time presented itself earlier this month, when Sibley noticed the sure signs of a dip in the market, so he bought in, only to sell two weeks later when the market dipped much lower.
“I was ready to ride the rocket,” explained Sibley over a Zoom call with Hard Money. “I noticed that some of the most talked about stocks, including a uranium company and an alt coin ETF had suddenly plunged downwards, so I threw the nest egg I had earned from Chipotle into the market. Unfortunately, instead of the stocks ripping upwards like I had seen in so many YouTube tutorials, they continued to plummet.”
Since stocks can always go lower, it’s important to set stop-losses to protect your investments if they suddenly crash. Sadly, Sibley didn’t recognize that his portfolio was in a nosedive. “I thought I had just bought in slightly too early,” he recalled, as moving men removed furniture from his apartment in the background. “That would make sense, since I was new to trading. Maybe I just needed to wait for the bottom of the dip. Unfortunately, the bottom never came.”
At this point Sibley became emotional. “I probably should have cut my losses at that point and accepted I had entered the market at the wrong time,” he continued, “but my boss at Chipotle told me we might introduce a breakfast menu soon, and I thought that could really take the brand to new heights. For that reason, I took the rest of my money and bought as many shares in Chipotle as I could, so as to recoup my losses. Needless to say, that stock also went down. If I were able to go long, I would probably eventually make that money back, unfortunately, I can’t afford my rent so I had to sell. All in all I learned a lot, lost about $40k, and I’m moving back in with my parents.”