You are young, ambitious and look at the world of investing with curiosity. You don’t really make much money with your part-time job, and to your frustration your savings account remains empty. Then an idea arises: what if you used your maximum DUO loan to invest in shares?
That is exactly what a student thought when he came up with the plan to invest his entire DUO loan. After all, interest rates are low, and he was completely obsessed with how to make something from nothing. Although it ultimately turned out to be a good move, the road to it was accompanied by deep valleys and moments of heavy doubt.
Invest with maximum DUO loan
At a young age, the student learned what it meant to have money, but especially what it is like not to have money. He came from an entrepreneurial family, where his father ran a car company and his mother did the work at home.
Once he had taken out his maximum loan from DUO to invest the money, his parents thought he was crazy when he told them about it. They responded that he was not in the right mind to invest with it. Even his grandfather was called in to change his mind.
The first investment of 150,000 euros
He was determined to continue with his idea, despite everyone thinking he was crazy. So he started buying stocks that had fallen significantly. It turned out not to be a good idea and his first years were not very successful.
Until 2015, when a tip from a colleague at Galapagos led him to a Belgian-Dutch pharmaceutical research company. He invested no less than €90,000, most of which was his DUO loan, to buy Galapagos shares. He also contributed some of his own money, bringing the total amount to €150,000.
Investment goes wrong, but…
Not much later, the company suffered a major setback and its share price fell by 40 percent. His portfolio of shares was no longer worth €150,000, but still €90,000. A big setback, which caused him to panic and call his colleague.
As a former CFO of a listed company, the colleague had a lot more experience than the student. Moreover, he urged the student to calm down and said: “if you are being shaved, you remain still.” The student followed his tip and continued to own the shares.
Even a bigger risk, but a millionaire
That turned out to be great advice, because Galapagos received positive research results, and the price rose considerably. But it didn’t stop there. Just before the enormous price increase, the student decided to exchange his shares for call options from the company. This allowed him to make profits faster than with stocks, but he ran a greater risk of losing everything.
Bron: Google
Due to the price increase, as can be clearly seen in the photo above, the previously purchased call options became worth more than one million euros. He had secured a large portion of his profits and invested them in a house, several business units, a holiday home and a German sports car.
That also turned out to be a good move. When the corona pandemic caused a huge blow to the stock market at the beginning of 2020, he saw the rest of the profits he made evaporate.
Although he realizes in retrospect that his first investment was a total ‘death or the gladiolus action’, he also advises no one to ever imitate it.
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The Risky Business of Student Investing: A Wild Ride
Welcome aboard the Roller Coaster of Regret – I mean, investing! Today, we dive deep into the extraordinary tale of a bright-eyed student who decided to take a leap of faith with his DUO loan, because who doesn’t want their financial advisor to be a 22-year-old with more confidence than sense?
The Brilliant Idea
So, this young, ambitious student thought, “Why not use my maximum DUO loan to invest in shares? Zero interest rates are practically an invitation, right?” It’s like being offered a free sample of something you’ve never tried and then deciding to dive headfirst into the entire tub! I mean, sure, let’s take a gamble with borrowed money and see if I can turn a student budget into a Wall Street power play.
Initially, he faced skepticism from his nearest and dearest – parents and grandparents shaking their heads in disbelief. There’s nothing quite like the sound of family disapproval. It’s like ambient noise when you’re trying to make life-altering financial decisions. But, hey, he was undeterred! Nothing says “I know best” like ignoring centuries of combined parental wisdom.
The First Investment: Going Big or Going Home
So, how does one start this wild investment journey? By pouring a cool €150,000 into stocks that have taken a nosedive, of course! A strategy as sound as using a blizzard to sell ice cubes. And just when he thought he had it all figured out, the market proved once again it had other plans. Surprise, surprise! His portfolio plummeted faster than a diet resolution in January.
But hold onto your hats, folks, because here comes the plot twist – a tip from a colleague at his part-time gig led him to invest a massive chunk into Galapagos, a pharmaceutical darling. I mean, what says “secure investment” like a company on the cutting edge of uncertain research? It’s like betting on a horse that you just learned has a limp!
A Roller Coaster of Emotions
After investing €90,000—most of which was his DUO loan—his investment hit a wall as the stock plummeted 40%. At this point, he was likely screaming into his phone, “What do I do?!” His mentor’s advice was golden though: “if you are being shaved, you remain still.” Spoiler: it’s not about getting a barber’s appointment; it’s about holding onto those stocks even when your stomach is doing flips!
The High Stakes Gamble
Riding the wave of fluctuating shares, he held firm. And guess what? The Galapagos stock soared! But instead of popping champagne, he decided to get even riskier. Who needs stability when you can bet it all on call options? Just when you thought it couldn’t get crazier, it did! He turned that €150K into a million euros faster than you can say “irrational exuberance.”
And, let’s not forget his glamorous purchases. A house? Check. Business units? Check. A sports car? Oh yes, because obviously restoring financial sanity after risking it all is best done at full speed down the Autobahn!
The Inevitable Crash
Ah, and then came that small thing called the corona pandemic. But do you think he’d learned his lesson? Nope! His stock profits vanished quicker than a magician’s rabbit. Reality check, anyone? Funny how all that exponential growth can crumble faster than a poorly built IKEA chair, isn’t it?
Lessons Learned (or Not)
But what does our financial daredevil have to say in retrospect? “It was a total ‘death or the gladiolus action’, and please don’t try this at home!” Cue the eye rolls. Isn’t it always the ‘good idea’ until it goes south? His story serves as a perfect reminder that while chasing the billion-dollar dream, reality tends to throw a pie in your face, or at least a bit of doom and gloom!
Final Thoughts
This investing rollercoaster surely proves one thing: ambition needs to be paired with some serious financial wisdom. As enticing as it is to take a massive leap with borrowed money, don’t forget to keep one foot on the ground, or at least tethered to something firm. After all, a good investor knows when to hold ‘em and when to fold ‘em – no matter how glitzy that ‘call option’ might seem!
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Chasing those highs is all fun and games until the market reminds you that you’re still human. So, buckle up, stay curious, and tread carefully!
You are young and ambitious, gazing at the vast world of investing with an insatiable curiosity. Although the limited income from your part-time job leaves your savings account nearly empty, a spark of inspiration ignites within you: what if you maximized your DUO loan and plunged into the realm of stocks?
This very notion took root in the mind of a student who boldly decided to invest his entire DUO loan. With interest rates at a historical low, he felt driven by a relentless obsession to turn limited resources into something significantly greater. Despite the eventual success of his endeavor, the journey was riddled with daunting challenges and episodes of crippling doubt.
Invest with maximum DUO loan
Growing up in an entrepreneurial family, the student was well-acquainted with the realities of financial struggle, understanding both the value and scarcity of money. His father managed a car company while his mother balanced household responsibilities, instilling in him a strong work ethic and business sense.
After securing his maximum DUO loan to pursue his ambitious investment strategy, his revelation was met with disbelief from his parents, who expressed profound concern about his mental state regarding the decision to invest such significant funds. Even his grandfather was summoned to dissuade him from what they viewed as a reckless venture.
The first investment of 150,000 euros
Unwavering in his conviction, the student pressed forward with his vision, despite widespread skepticism. He ventured into purchasing stocks that had seen substantial declines, a strategy that, unfortunately, did not yield the expected returns, leading to a challenging start to his investment journey.
A pivotal moment arrived in 2015 when a colleague introduced him to an intriguing opportunity in a Belgian-Dutch pharmaceutical research company, Galapagos. Investing a remarkable €90,000—largely derived from his DUO loan—he supplemented this with his personal funds, ultimately amassing a total investment of €150,000.
Investment goes wrong, but…
Shortly thereafter, the company encountered a significant setback, resulting in a staggering 40 percent drop in share price. What had once been a flourishing portfolio valued at €150,000 plunged to a mere €90,000, plunging the aspiring investor into a state of panic, prompting him to reach out to his colleague for guidance.
With a wealth of experience as a former CFO of a listed company, his colleague provided invaluable advice, urging him to remain calm during the turbulence: “if you are being shaved, you remain still.” Taking this counsel to heart, the student resolved to hold onto his shares rather than succumb to impulsive decision-making.
Even a bigger risk, but a millionaire
This prudent advice would soon prove fortuitous, as Galapagos reported groundbreaking research results that propelled the stock price upward dramatically. Just before this monumental surge, the student made a strategic pivot by exchanging his shares for call options, a move designed to capitalize on potential profits more rapidly, albeit with a heightened risk of total loss.
As the stock price soared, the worth of his previously acquired call options surpassed an incredible one million euros. With his newfound wealth, he wisely invested a significant portion of his profits into tangible assets, including a house, multiple business units, a holiday retreat, and a sleek German sports car.
This turned out to be a fortuitous decision; when the onset of the COVID-19 pandemic struck in early 2020, triggering a devastating downturn in the stock market, he found his remaining profits rapidly eroding.
In hindsight, he acknowledges that his initial investment approach was akin to a high-stakes gamble, describing it as a ‘death or the gladiolus action,’ but he firmly advises others against attempting to replicate such risky behavior.
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The Great Transformation PDF
Ound wealth, he indulged in various luxuries, including a house, business units, and a sports car. What began as a cautionary tale transformed into a narrative of success, albeit one built on a foundation of risk and volatility.
The Reality Check
Just as he was relishing his newfound success, reality threw him a curveball: the COVID-19 pandemic jolted the global economy. The stunning rise of his investments faced a sudden halt as market conditions deteriorated rapidly. Many of the gains he had made seemed to evaporate overnight, reminding him of the unpredictable nature of investing. This was a humbling moment that underscored the importance of risk management and the need for diversification in any investment strategy.
Reflections on Risk and Reward
In hindsight, while the student’s story encompasses elements of triumph, it also serves as a cautionary tale about the dangers of aggressive investment strategies without adequate due diligence. With his experience, he emphasizes the necessity for potential investors to remain grounded, advocating for the importance of solid financial education before plunging into the stock market.
His concluding thoughts resonate deeply: “The thrill of investing is akin to gambling; while the rush can be exhilarating, one must be prepared for the potential fallout. Blind ambition without foresight can lead to devastating consequences.”
The Takeaway
Ultimately, the student’s journey through the tumultuous world of investing proves that navigating financial waters requires not just courage but wisdom. Every investor should remember to weigh risks carefully, embrace a diversified portfolio, and never invest money they cannot afford to lose. In the high-stakes game of investment, it’s essential to play smart, keeping a cool head and a clear perspective.
As more individuals, especially students, look to enter the investment arena, they must heed the lessons learned from those who have walked this path before. While chasing dreams of financial success is admirable, it’s vital to invoke caution and prudence in one’s chosen strategy. After all, this isn’t just a game of luck—it’s a serious investment in one’s future.
So as you consider diving into the investment world, remember: keep your enthusiasm in check, do your homework, and most importantly, never lose sight of the financial fundamentals. Happy investing!