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My friends bug me sometimes

September 8th, 2010 at 01:37 pm

So, a friend of mine is really itching to get into stock trading. Even though he's in a lot of debt and being garnished by the IRS, he wants to use like $2000 of his student loan money (at more than 6% interest) for it.

I told him about the risks, but he was like, "It's worth it. Gotta start somewhere." But I'm like, "Are you sure about this? Because the numbers don't make any sense." His response was, "Numbers never make any sense BA! They're subject to interpretation!"

Oh really? Playing with the stock market using borrowed money you need to live off of within 3 to 6 months, and at 6% interest is somehow subjective? And why so defensive? I'm just trying to be a friend and warn him of the dangers involved.

You guys know that for literally years, all I did was pay off my student loans. No stock trading here. And even now, I do not trade on margin (loans) whereas that's exactly what he plans to do. Also, he needs this money within 3 to 6 months, whereas I don't trade with any money that I need anytime soon.

I mean, it's just such a bad idea that even I would not have done it. I do wonder why he is so dead set on it? Is it ego? I know he's used me before as a source of information, and then passed it off as his own to try to impress beer buddies and women with it.

I do have to admit that I am partially to blame. He's a friend that I've been talking about all my stock and options trading to. So, clearly, I embedded the idea in him somehow. BUT, I had no idea he would decide to be so reckless about it. That's the last thing you want to do because the activity itself is dangerous enough as it is.

But I guess what really bugged me about all this is that he was being rude to me about it, even though I'm just trying to help as a friend. Whatever. I didn't tell him all this though. Instead, I just said that if he feels that strongly about it, then just open a Scottrade account, and buy his stocks there.

I don't think I want to hang out with him for a while though. That and a lot of other stuff makes him really stressful for me to be around him.

6 Responses to “My friends bug me sometimes”

  1. MonkeyMama Says:

    He will have to learn the hard way - most people do!

  2. Joan.of.the.Arch Says:

    Oh dear. The fellow is not being rational.

  3. Apprentice Bliss Hunter Says:

    You tried to warn him. There's nothing more you can do.

    There's a saying that goes along the lines of:

    "Let the foolish persist in their foolishness so that they may become wise."

  4. Broken Arrow Says:

    That's a great quote, Bliss. Thanks everyone.

  5. baselle Says:

    Wow. EVERY successful trader has a deep respect "for the numbers". Heck, every gambler does too. The whole point is to buy money as cheaply as possible. Its not to be called a stockbroker for the babes or to be a risk addict.

    What's really bugging you is that you don't want to be there to pick up the pieces and front him money when he crashes and burns. Big Grin

  6. Jerry Says:

    It's not your fault, he's just relatively ignorant and about to take a hit. Hopefully it will lead to knowledge and he will be smarter in the future. There's just never any insurance as to how people will roll with things, you know?
    Jerry

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