Tuesday I told you about my first week as a new stock broker… If you haven’t heard that, go back and listen to it.
In any case, Izzy guy placed a trade so bad, he passed out and fell flat on his face right in the middle of the office.
And when I asked my boss what happened to Izzy, he told me never to play with options.
That kept me from buying call options… for a little while.
But I have to learn things the hard way — firsthand.
Learning The Hard Way
Not long after Izzy passed out, me and another stock broker went half-and-half on an option expecting it to double.
It was November — so Thanksgiving was coming up — and if that trade had worked out, I would have been able to go home to Gary, Indiana as a 23-year-old bigshot home from Wall Street.
But that’s not how it worked out. The stock didn’t go up. Every day I watched as the stock went lower and lower.
It went so low that it would have cost more to sell it than it was worth, because back in the 80s there were minimum commissions.
I ended up having to take the bus home. And instead of flying in like a Wall Street bigshot, I came home broke as a church mouse.
It was humiliating. I had to pawn off a bunch of my stuff.
Lesson Learned
I let the dollar signs cloud my judgement. I let the greed get to me.
I wanted to look like a bigshot and I broke the #1 rule of trading:
I traded more than I could afford to lose.
If I could tell you the most important lesson of my entire career, that would probably be it.
Trading isn’t about getting rich overnight; it’s about making smart, calculated decisions and managing risk. Sometimes the best trades are the ones you don’t make.
Reflecting on my journey, I’ve learned that humility and discipline are far more valuable than any quick gain.
In the long run, it’s these lessons that will keep you in the game and pave the way for true success.
So, remember to keep your ego in check and always respect the market. It’s a humbling teacher, but those lessons are priceless.
Trade well,
Jack Carter
P.S. It’s been a long time since I’ve made a mistake like that. And in the nearly 40 years since this story took place, I’ve learned a thing or two. Including how to tap into tap into profit sharing payments with some of the biggest companies in the world. Click here to check it out.
