i lost over $198K trading options. this money did not belong to me. A position blew up, my friend loaned me money and then there was another blowup. I am 25. I earn $50K per year. I obviously must do something to make this money back asap.
I may switch jobs to one where i can earn $90K in year 1, $100K in year 2, $120K approx in year 3., etc, etc.. THis job would be in a hedge fund. OR I can take a job as a daytrader (fulltime) and try to make it back slowly,
QUESTIONS> IS my situation hopeless? Is it possible to correct? I am getting married shortly . wife wont work for at least two more years.
What can i do to help my situation?? What job should i take? What can i do to not get depressed?
I have two basic loans: 1) is for $95K - I must pay $800 per month. this is to a family friend.
2) the second loan is for $85K ,and my friend wants this $85K asap.
How the hell do i get him the $85K ???
I have a series 7,63,24,66 and life/health insurance licenses.
2007-08-05
07:21:23
·
12 answers
·
asked by
Afi K
1
in
Business & Finance
➔ Credit
1)first of all, it was a trading loss. i am not a horrible person at all. just cause someone losses money, does not make them horrible
2) if i take the hedge fund job, earning approx $90K in yr 1, $100K yr 2, $120K yr 3, it means i can pay everything off in 36 months. Whats so terrible about that plan?
3) my girlfriend knows about it, but not the exact amount. just that its a large loss. Its no big deal to go into details. Bottom line: for 36 months, things will be tight. Afterwards, things shud get better. Bankruptcy is not an option . I cannot do that.
THe reason i posted my question is: I wanted to know if anyone had any better solutions on how to resolve this problem. It is 100% true, trust me I have no reason to make this up. It hurts me a lot, but u know what,people have health problems and deaths in family ,etc..which are a hell of a lot worse than my situation. I just want ,i dont know ,perhaps some reassurance that I am not fooling myself and that my 36 month plans ok
2007-08-05
12:40:34 ·
update #1
I'm not sure how one could lose that much playing options, as options are supposed to buffer you from severe losses. Maybe you playing the futures markets directly, which is dangerous due to the leverage. Or maybe you were otherwise leveraged and got in a margin call.
Either way, you should face the fact that what you were doing was gambling, and you were doing it with other people's money. You might not see this from your position now, but that's considered to be, at best, unethical in pretty much any culture or situation. Probably your best bet is to own up to everybody, take the heat, and then maybe your remaining friends will help you think of the best solution. I think you'll end up in bankruptcy court and i don't envy you.
Sorry if this sounds harsh. As we say in golf, you're in the weeds pretty badly.
2007-08-05 13:21:20
·
answer #1
·
answered by Barrabas_6025 4
·
0⤊
0⤋
Options can be used to make money if you have market experience, technical analysis skills, and familiarity with the your selected company. They can also be used to effectively hedge against serious losses when you are selling a stock short (selling shares that you don't own) by trading on margin (money borrowed from the invesment company). This type of transaction is especially effective in bear markets, as you can sell a short sell a stock for say $100 and then buy it back when it falls to $80, which will give you $20 profit, minus trading commissions. My advise, stay away from options if you have $1000 to invest, the risk is on your experience is just not worth gambling it away. Start slow...with investments..go for CDs, or find tax free municipal or treasury bonds.
2016-04-01 00:12:56
·
answer #2
·
answered by Anonymous
·
0⤊
0⤋
Greed is your problem. Why would anyone loan you that kind of money to trade? What is your credential?
Now someone else would loan you the money to pay back what you lost the first time? Do they know why you need that kind of money? You're only 25. Whoa!
I think this is way over your head. I bet you bragged a lot and made people think you're capable of dealing with money. I don't know if I would buy life/health insurance from you although you may have licenses.
2007-08-05 08:06:37
·
answer #3
·
answered by Prenn 3
·
0⤊
0⤋
you blew up. Twice!
why?
until you can answer that simple question with great clarity and have adjusted your methods to prevent similar future occurences, you have no business trading.
If you are out of the markets, stay out. If you're in, go flat.
Immediately.
as for your friends -- #2 is about to get a big learning lesson. never, EVER loan money to a trader. If a trader hasn't enough money to trade with, he should be out of the markets ASAP.
You'll have to make the best deal with him that you can.
Friend number one ... you need a job so you can make payments and I recommend that you avoid one that relies on you trading successfully. Maybe you can still sell people on the risks of trading ... and it sure looks like Mr. Market has decided to make even that job difficult for at least a few months, maybe longer.
As to your possible depression -- when you solve the problem of why you blew up twice you'll have it on the run.
I'll give you a hint -- the problem is in either you, your money management, or your systems (because that's all there is). Since you're responsible for your money managment and your systems ... it is up to you.
If you're mentally tough, you'll get through this and solve the problem. Otherwise, quit trading permanently. Mr. Market does not care about you or your issues ... all he wants is to take your money as fast as possible.
2007-08-05 07:40:13
·
answer #4
·
answered by Spock (rhp) 7
·
1⤊
0⤋
Greed has killed you here. Yeah, you make 50,000 and suddenly you are going to get hired in a position earning 100,000 ..why the hell would you be working for 50K in the first place??
Day trading does not seem like a good way for you to make back your losses, since you LOST money trading.
Bankruptcy is likely your ONLY option. If your story is true, which is unlikely. I don;t see a friend loaning a kid 100,000
sorry.
2007-08-05 07:35:26
·
answer #5
·
answered by zanthus 5
·
1⤊
0⤋
WOW! I thought I had problems. You make me feel good only owing some 7 grand to the phone company that I shouldn't owe anyway :)
Seriously, I'm not sure what you can do. Is bankruptcy an option for any of these loans? If so, that's your only hope for sure!
2007-08-05 07:26:05
·
answer #6
·
answered by Anonymous
·
0⤊
0⤋
What a way to start a marriage ! $200K in debt, and the boat leaking like a sieve. If your fiance is still naive enough to go through this marriage with you, tell her she's going to have to work immediately. ( I HOPE she's aware of what you have done !)
You're in NO position to take on the additional financial load of a wife and marriage.
2007-08-05 08:52:13
·
answer #7
·
answered by acermill 7
·
0⤊
0⤋
U.S.
Gambling Help Line
1-800-522-4700
2007-08-05 07:28:16
·
answer #8
·
answered by SNCK 3
·
0⤊
1⤋
Did you lose the money while day-trading?
Sorry dude, what you did was WRONG.
If I was your fiance...you would need to stick me with a fork because I would be D-O-N-E with you!
2007-08-05 12:31:03
·
answer #9
·
answered by Expert8675309 7
·
0⤊
0⤋
You have got to be kidding us. If you are not, maybe one of the Bear Stearns hedge funds will hire you. You sound like you might fit in nicely with them.
2007-08-05 07:30:02
·
answer #10
·
answered by Anonymous
·
0⤊
0⤋