TIFU by investing in a gold penny stock before a huge crash

Discussion in 'TIFU' started by StockJock-e, Apr 3, 2016.

  1. StockJock-e

    StockJock-e Brew Master
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    This happened back in the 90's after the huge Bre-X scam.

    If you were not around for that, its probably one of the most amazing stories you will ever hear.

    Short story is that a no-name penny stock named Bre-X trading on some shitty Canadian exchange found itself in Indonesia on a potentially massive (we are talking record breaking!) gold find.

    The little stock ran from pennies into a billion dollar market cap company trading on the NYSE.

    My being the very smart and invincible new trader thought it would be great to not buy Bre-X (because it was way too expensive for me), but buy the neighboring small penny stock instead.

    Well, things started going wrong.

    The Bre-X scam unfolded, but I felt I was safe because my company was not them.

    I was wrong.

    The entire sector crashed!

    Nobody wanted to touch gold mining penny stocks, no matter what amazing gold property they claimed to be holding!

    It did not help that since Bre-X was a scam, it meant that the neighboring companies by default had zilch, zero, nada in the land they were drilling.

    Everything dropped and kept dropping, and I kept holding waiting for the recovery that never came.

    Lesson learned: When things go south, GTFO! Dont sit on your ass and wait for a better day that may never come!
     
  2. Z-OldEurope

    Z-OldEurope Active Member

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    As it seems the best Tifu stories happened back in the 90's. What a wonder.

    Atm. im about to start a new Penny Stocks thread and had a look if something similar exists.
    Nope, but i found this chapter, what remembered me about a very very bad day, back in the mid. 90is.

    I successfully suppressed it, so what i can remember now is i was a bloody newbie, had no clue about the impact of earning, lying,
    scamming, defrauding and all the other things that some 'Companies' use. aso aso.. Especially Penny stocks and small stocks.
    Of course i had no real clue about stock splits, pump and dump (and that is allowed) aso aso..

    To cut a long story short, the Us stock trading, because of the time shift starts here at 3:30 pm and ends at 10pm.
    I started in the afternoon, and watched from the beginning the whole day my balance vanishing more and more and
    at the End of the day i lost 14000 $. In one day ;) Well now i can laugh about, he he he..

    Then, still calm, i went to my preferred bar, took a beer (only two, really) and was very quiet. Thought about again and again
    while around me the other people partied.. Kind of shock ? I simply accepted it, and knew i screwed it in some way, so what
    to do except to freak out. What wasn't a option. Wanted to talk about with someone, to process it, but how to start a nice
    conversation with people that have no clue about stocks and you lost today 14k in few hours.. So better say nothing.

    That was a expensive lesson..

    he he he.



    ps.

    "The little stock ran from pennies into a billion dollar market cap company trading on the NYSE."

    Yep. Thats Part two of the story. or how i will start my Penny Stocks thread.
    Whats about having about 1 mil. stocks of a small Russian company, it was something
    with vaccination, keeping them for months then sell, make a super profit, then a year later,
    common lets have a look, how they do.. Whhaat..

    It run from 0.0.. to 4 or 5 $$.

    Of course you cant know it, but i had 1mil. of them and i kept them a long time..

    Mhhh..

    Laughing loud. Great thread.

    Greets,

    Zzz.
     
    Syynik likes this.
  3. Hoghead

    Hoghead New Member

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    I just watched the movie "Gold" then looked it up on wikipedea. That was an amazing story. I was suprised alot of people didnt wind up dead.
     

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