How to get back on track after hours trader: ‘It’s a bit of a mess’
A trader on Wall Street says he was in a chaotic situation on Wednesday when he thought he was buying shares at $2 a share.
He got distracted and lost $4.3 million, and now he says he is feeling overwhelmed and confused.
He said it started when he noticed a stock price of $2.80 going down on the Nasdaq on Wednesday morning.
“It was like someone was taking a breath,” said David DeMarco, who runs an online trading firm.
“My mind was spinning, so I was trying to find an option to buy that at $4 a share.”
But the stock price wasn’t down.
So he said he went to the next stock at $3.20 a share, which was down a third.
So the next day he bought another stock at a price of about $3 a share at which the price of the next share was about $4, and so on, DeMarco said.
That’s when things got really confusing.
“I realized I had bought a $10 million position in a company that was not really trading, and I was on the way to buying the company,” DeMarco told CNNMoney.
He says he has since realized that he didn’t realize how much he had bought.
“There are a lot of things that go into it, but the biggest thing is I have not bought enough of the shares in that company to make the full buyout,” DeMario said.
DeMarco also said he doesn’t know how to get the stock back up to $4 on Thursday, and he thinks he might be selling stocks on the day that he buys the shares back.
“If I want to, I could sell the stocks I bought in the first place and buy a stock on the first day, but I don’t think that’s a good idea,” he said.
“The stock market is like an animal.
It’s a very competitive market and you’re always going to get a bunch of different people competing for the same market.”
A number of people on Wall St. say they have experienced similar situations.
“A lot of people that are trading and having the same issues, they have to do some sort of buyout.
It just takes time and it’s difficult, because you don’t know what the company is going to do,” said Patrick Glynn, a senior analyst at Guggenheim Securities.
But it can be done, he said, if the investor has some money to burn.
Glynn said he thinks many people who are trading are using stock pickers that can help them get out of a stock market tailspin.
Geezer Tippett, the founder of a trading company called Tippetts Asset Management, says he would advise people to take the time to get comfortable with trading.
“That’s the biggest reason why I’m trading stock,” he told CNN.
“You need to be in control of what’s going on and not get distracted by everything.”