Anybody invested in these stocks in the past? If you have, then I’m sorry for your loss too.
These stocks were my, unfortunately, my first introduction to investing.
Back in the late 90’s during the dot-com craze, I followed the herd and decided to open an online trading account.
I thought that I was an “informed investor” by reading opinions from strangers on online stock forums. Then I basically started clicking “BUY” with my mouse button.
And boy I did think I was smart. I saw my money double and triple during those heydays. Now, I was a medical student during those days, so I did not have much money to invest, which was a good thing, because my money eventually all evaporated into nothingness.
BID.TO was a Canadian version of Ebay
NFC.TO and SKG.TO were mining penny stocks that jumped on the internet bandwagon and changed their companies into “.com internet companies”. One turned into an online e-trade brokerage and the other morphed into a virtual e-shopping mall. All 3 were eventually delisted on the Toronto Stock Exchange (TSX).
Every Canadian has heard of NT.TO (Nortel Networks). This company was like the “Apple” of the S&P500 back in the days. It was a huge component of the TSX60. Probably every Canadian held this stock in one form or another if you were invested in mutual funds. Nortel was also eventually delisted from the TSX. If interested, you can read all about Nortel HERE
Notice a trend?
I experienced the euphoria of watching my portfolio rise through the stratosphere, and then experienced the shock and horror as these stocks sank back down to earth (more like the bottom of the ocean).
When I think of myself back in this time period, I can’t help but feel anger at myself for taking the plunge and risk of gambling my money away. However, at the same time, I am thankful for making this mistake early on in my investing career, when I didn’t have much money to lose anyways.
Lessons were learned.
1) It is extremely easy to buy a stock and become emotional attached to it.
2) It is extremely difficult to sell a stock after becoming emotionally attached to it
3) When your daily happiness or sadness is tied to the price of a stock or the fluctuations of the stock market, then that is when you know that you need to take a step back and acknowledge that your mental health is suffering
Fortunately, I learned from this experience, and have since gone on to greener pastures with passive index investing!
Did you invest in stocks during the dot-com craze of the late 90’s? Have you had any investing mistakes yourself?