This guy just lost $10,000 trying to time the volatile market — using his credit card

Some people may feel compelled to take action when they see a volatile stock market, and for one 24-year-old Reddit user, this week’s dramatic market correction was the time to buy on a dip.

Unfortunately, it backfired.

The Vancouver-based user, a financial analyst at a Canadian pharmacy who earns $50,000 a year, said he lost his entire savings ($10,000) from trying to buy the dip, and he wrote in his thread about using his credit card to trade CFDs (contract for differences), which are investments that mirror assets the trader doesn’t actually own. He initially funded his trading account with $4,000, but when he got margin called a few times (which means the broker demanded he put more money in to meet minimum requirements), he ended up investing $10,000.

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