GREY:XEBEQ - Post by User
Post by
tamaracktopon Mar 03, 2021 9:04am
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Post# 32703233
A Sobering Thought and a Lesson
A Sobering Thought and a LessonPrabhu's departure was completely unexpected. Out-of-the-blue.
That sometimes happens in the market. Things happen that you can't possibly anticipate.
Things like covid 19
The Exro Event yesterday was a lesson. A free lesson to most, but not all. A lesson in the importance of diversification, particularly those on margin. No matter how smart you think you are.
It can mean the difference between survival and disaster.
If any people had been concentrated in Exro, and had been fully margined, they would have been completely wiped out yesterday. All of their equity destroyed. Their accounts, no matter how big or how small, would have gone to zero in one day.
That was just an isolated case. It happened to just one stock.
I was a stockbroker when it happened to the whole market. Black Monday. October 19th, 1987. The Dow dropped 30% at the open, and closed down 22.6%. The biggest one-day percentage drop in history.
It came without any warning whatsoever.