Investing in the stock market is seen as a way to secure a brighter financial future. But for one Reddit user, DubiouslyCurious, the article became a cautionary tale about what happens when timing, influence, and luck don’t align. The investor shared his story on the popular subreddit r/wallstreetbets, exposing the heartbreaking consequences of placing a large bet on NVIDIA, one of the most successful companies of the past decade.
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NVIDIA’s loss
Back in 2018, DubiouslyCurious realized what many others had overlooked: NVIDIA was more than just a gaming company. It positioned itself as the backbone of artificial intelligence. The company’s GPUs have fueled advances in AI around the world, and its CUDA platform has become indispensable for developers. They said NVIDIA was “the iOS of AI,” a tool that others couldn’t easily imitate.
Believing in NVIDIA’s future, they invested all £100,000 of their savings and inheritance and used 3x leverage to increase their returns.
For a while, the gamble seemed to pay off. As NVIDIA’s stock price rose, they watched their investment grow to life-changing levels. “For the first time in my life, I saw a path to financial security,” they wrote. But then the coronavirus pandemic hit, a black swan event that sent the stock market crashing.
While NVIDIA recovered quickly, DubiouslyCurious couldn’t wait. Because their positions were leveraged, losses quickly piled up and they had to sell everything to survive. “I sold it when I had to take out what little money I had left just to buy food. The irony of course is that the price went up as soon as I sold it. But by then the damage had already been done. It was happening.”
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Here comes the bitter irony – DubiouslyCurious was right about NVIDIA. The company did exactly what they predicted, becoming a cornerstone of the AI revolution and one of the most valuable companies in the world. They claim that if they had not been forced out and had bought and held NVIDIA shares without any leverage, the original £100,000 would now be worth ‘6.6 million’. I did.
story continues
Rather, leveraging their investments magnified the impact of NVIDIA’s temporary downturn due to COVID-19. When NVIDIA’s stock price temporarily fell due to the impact of COVID-19, we faced margin calls and lost everything. One commenter said, “This chart is a great example of why holding leveraged positions for long periods of time is a bad idea.”
Now, DubiouslyCurious says, they work for large companies but earn less than half the average wage in their area. Despite being overqualified, the reward is a £20 gift card for Employee of the Month.
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But losing money is not the most difficult thing. Even though they were right about NVIDIA’s potential, they still lost everything. “I was absolutely right about NVIDIA and still lost everything. This is a special kind of pain that is difficult for most people to understand.”
Adding to their challenges, they are currently living “paycheck to paycheck” with ME/CFS, a chronic illness that limits their ability to work and future economic recovery.
DubiouslyCurious’ story resonated with thousands of people online and sparked a discussion about risk, leverage, and market unpredictability. Here are some important points:
Avoid using leverage unless you fully understand the risks. Leverage magnifies profits and losses. Increasing your profits is tempting, but if the market moves against you, you may be left with nothing.
Don’t gamble your life savings: No matter how confident you are in your investments, don’t risk money you can’t afford to lose.
Patience and diversification are key: Even if you strongly believe in stocks, it’s better to diversify and hold for the long term without taking unnecessary risks.
Timing is important but difficult to perfect. Markets can be volatile, and even the most well-researched predictions can come off if the timing isn’t right.
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This article “I put my life savings into NVIDIA and lost it all” – One investor’s tragic story shows why “timing is everything”.
Adnan is a passionate doctor from Pakistan with a keen interest in exploring the world of politics, sports, and international affairs. As an avid reader and lifelong learner, he is deeply committed to sharing insights, perspectives, and thought-provoking ideas. His journey combines a love for knowledge with an analytical approach to current events, aiming to inspire meaningful conversations and broaden understanding across a wide range of topics.
