This is way back in 1970, when I was still new to markets and the business. I had all my money in puts in January, which people thought was nuts. I sold my puts the day the market hit bottom and tripled my money. Two months later, I sold short several companies — but in the next two months, markets kept rallying, stocks kept going up. I was wiped out and lost everything. Interestingly, the companies I'd short also went bankrupt over the next two years, but I was wiped out first.Contrary to what most pundits believe, timing is critical when investing/trading. By the way, I don't make any difference between the two, I believe those who think they are investing in the markets are fooling themselves, they are just speculating and get stuck in losing trade for too long.
This episode taught me that i didn't know enough about markets and market timing. I thought I was smart but I didn't know better.
Jim Rogers' worst Investment Decision Ever
While we're on the topic of the worst investment decisions, let's take a lot at Jim Rogers':