Do share more? I am interested in this story...
Did what I thought was very good "due diligence" and bought into a stock. Kept buying into it, though it started falling. Knew I should have been dumping it and taking the "small" loss but the emotion kept saying to hang on...going to be rich.
Well, it kept falling and I kept buying, even into $20,000 margin. Thought that I could pay the margin off and get all the benefits of the big bounceback that it just "had to do".
It didn't and I fell into a terrifying cycle of margin calls...about every two to three days. Of course, instead of dumping then, I kept saying (in a panic) that I had to make it up...it's going to make it up....it didn't.
At one point, my account went negative (because of the margin). It took a bounce and I had to unload...left me with $0.25 in my account. Had to call the broker just to ask them to not charge me margin interest meaning that I would have owed them just to get rid of the stock.
The hardest thing that I ever had to do was to go home and explain to my wife that I had just lost $59,000+ dollars. Expecting the worst, she gave me her best. The only condition for forgiveness was to promise her no more....an easy promise to make considering what I had just done.
My yearly $3,000 write off reminds me of that sad moment of my life each and every year.....for 16 more.
And what makes it even more sad is that I "KNEW" that I should dump it.....just emotion took over and lost all sense of logic. I have shed tears several times over the pain of that loss and also to the relief that my wife was far more loving and understanding that I would have give her credit for. A very painful and a true mistake that I will never forget....
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I tell this painful story in hopes that it will somehow prevent someone from ever doing what I did and having the pain or the displeasure of telling your loved one that you lost so very much of what you both had worked so hard for.....