Dear trader,
On a beautiful late winter afternoon, one year ago in December 2022, two young men created a Twitter account and started their investing journey. Both were talented, curious, and smart people.
The first trader, Alex, was easily influenced and soon came across a popular Twitter personality known as "wifeyalpha." Charmed by wifeyalpha's confident market predictions, Alex began to follow his advice religiously. He shorted the market repeatedly, convinced that this strategy would yield fortune and fame. Unfortunately, the market moved against his positions, leading to catastrophic losses. By the end of the year, Alex had lost not only his job but also his portfolio and savings. Markets were making new all-time highs.
Meanwhile, the second trader, Ben, approached his investment journey with skepticism and diligence. When he encountered wifeyalpha's advice, he critically evaluated the recommendations and soon realized his flawed logic. After publicly challenging wifeyalpha's strategies, Ben found himself blocked. Undeterred, he continued to develop his own investment strategy, focusing on long-term growth and diversified assets. His thoughtful approach paid off. A year later, he had not only recovered his initial investment but had also made significant gains.
As New Year's Eve 2023 approached, the paths of the two friends converged once again. They met at a party, a place of celebration and reflection. Ben arrived with a sense of accomplishment and optimism, eager to share his progress and learnings. Alex, on the other hand, came with a heavy heart, his life in shambles due to the blind trust he placed in a stranger's advice.
The party's festive atmosphere was a stark contrast to Alex's mood. He listened quietly as Ben recounted his journey, his successes, and the lessons learned. There was a mix of emotions in the air: regret and disappointment from Alex, and hope and optimism from Ben.
As the clock neared midnight, marking the start of a new year, Alex realized that his failure was not the end but a harsh lesson. Inspired by Ben's success, he resolved to approach his future endeavors with more caution and critical thinking. Ben, seeing his friend's determination, offered to help him rebuild, sharing insights and strategies that had worked for him.
As the fireworks lit up the sky, signaling the beginning of 2024, both men looked forward with renewed purpose. For Alex, it was a chance to start anew, learning from his mistakes. For Ben, it was a continuation of his successful journey, now with the added role of mentor and friend. The new year promised new opportunities and challenges, but they were ready to face them together, wiser and more resilient.
Morale of the story: don’t listen to online strangers. Build your own stuff. Do your own mistakes and learn from them. I took the example of wifeyalpha since I got blocked a long time ago and I find it funny, but there are plenty of examples. Be careful out there.
RC
Great article mate! I learned the hard way but I think it’s necessary for some to make these mistakes because failures should you learn from that will only propel you forward🫡