TL;DR

A Reddit post highlights how currency fluctuations and market irrationality can wipe out gains, even in ‘hedged’ investments. The key takeaway? Don’t chase quick riches; the market is a casino, not a charity.

Story

Another day, another dollar lost. The market’s a casino, and most gamblers lose. This post shows how naive investors get fleeced, thinking they’re outsmarting the system when they’re the marks all along.

The poster compares QQQ (an ETF tracking the Nasdaq 100) with EQQQ (a hedged version in Euros). The dollar’s drop should boost EQQQ, but the gains are underwhelming. Why? Because markets are irrational, driven by fear and greed, not logic.

This reminds me of 2008. Everyone thought housing was safe. ‘Prices always go up,’ they said. Then boom. Millions lost everything. Same story, different asset. People chase returns, ignoring risks. They see ‘hedged’ and think ‘safe,’ forgetting that complexity breeds hidden dangers.

One commenter lost 80k on a meme stock, then the remaining 120k chasing his losses. Classic. ‣ Meme stocks: Stocks hyped online, often with no underlying value. It’s like musical chairs – when the music stops, someone’s left holding the bag.

Another talks about gold and Bitcoin as dollar hedges. ‣ Hedge: An investment to offset losses in another. Sure, they might hold value if the dollar collapses, but that’s a big ‘if.’ And even if it happens, will you be able to access your gold? Your Bitcoin? History’s full of ‘safe havens’ that turned into traps.

The lesson? There’s no easy money. ‘Do your own research’ (DD) ‣ DD (Due Diligence): Researching an investment. is a meme, not a strategy. Most ‘research’ is just confirming biases, not uncovering truth.

Don’t trust anyone promising quick riches. They’re either lying or delusional. And remember, the house always wins.

Advice

Don’t fall for ‘guaranteed returns’ or complex ‘hedges.’ If it sounds too good to be true, it is.

Source

https://www.reddit.com/r/wallstreetbets/comments/1jys52a/nasdaq_didnt_reclaim_10_dollar_lost_9/