So in the last 2 years, I tried “investing” in various high risk maneuvers (think literally everything risky possible – from GME to crypto to options trading) and managed to lose 50k. I ended up losing 20k very recently in the span of a few weeks by making very dumb moves in options trading.
I’m obviously pretty beat up about this, and ended up with only 32k in liquid cash left (but with 11k in my Roth IRA and 10k in my 401k). I learned all the conventional advice about index funds and diversification, but still managed to make every textbook mistake one could make.
At the same time, the only silver lining from all this is that I’m proud of my high rate of savings, and the habits I formed in being able to set aside money from my paycheck (but obviously regretfully since if I spent it, at least I woulda got something out of it).
I’m in my late twenties, and trying to figure out how I’m going to recover from this 50k loss with only 32k cash left. I have a high paying job right now, but I hate it, and will probably be moving to a job that makes less than six figs, so I won’t be able to save as much as I did in these past few years to add salt to the wound.
I’m so tempted to deploy my 32k capital to capitalize on a market that I think at least short term is bullish to recoup at least some of my losses, but now I’m scarred and scared of losing more money.
What’s the best way for me to quickly rebuild? I also have 25k in student loans, and also 14k in auto loans. I feel like I made such dumb moves, and feel so setback from my goals of building wealth. Obviously I want to be more conservative investing moving forward, but what’s the best way for me to recover?
Leave a Reply