I’m 19M and I’ve been trading for a few months. I’m up about 15%. My sister (22F) saw this and asked what she should do with her savings. I told her to look into gold because it’s generally stable and safer than most investments.
She bought some gold on Jan 22. The price went up a little, so she felt good about it and bought more on Jan 27. Altogether, she invested $10k.
Right after that, the price dropped. She got really scared because that’s a lot of money for her. On Feb 1, she sold everything and locked in a $1,000 loss. After she sold, the price went back up and is now higher than when she first bought.
Now she wants me to pay her back the $1,000. She says I tricked her by calling gold stable when it dropped about 10% in a week. She says she wouldn’t have invested that much if I hadn’t made it sound low-risk.
I told her she chose to sell when it was down, and that stable doesn’t mean the price never drops. My mom says I’m the AH because I gave financial advice I wasn’t qualified to give, and it ended up costing my sister money.
WasITA for calling gold stable?
NTA, your sister shouldn’t bet money she can’t afford to lose on the tip of a 19yo.
ESH.
You suck for advising your sister to invest when clearly she doesn’t understand investment enough.
She sucks for making a dumb choice to buy high, sell low (the opposite of what you should do in investment) and not riding it out… then blaming you when she did her illogical/emotional reaction.
You do not owe her the $1,000. It is a lesson for her. An expensive lesson – but a lesson.
She also sucks for apparently taking the advice of a 19yo whos only been investing for a couple month as gospel.
Seriously, common sense would tell you that, unless OP has been studying the market for ages before hand, that his profits might be more generalised or luck based.
NTA. She wouldn’t have given you her winnings, she shouldn’t expect you to pay her for her losses.
NTA. A very popular and widespread belief. You can hardly be held accountable for that. Hopefully this will be a valuable lesson for her.
A), don’t panic sell, B) do your own DD.
ESH. Gold is stable except when it isn’t, and you can’t predict when that is. You have only been trading a short time, have no meaningful experience, and you’re advising others based on what are really just your guesses. That’s an AH thing to do. Your sister should not be listening to you about investing, and she is wrong to blame you for her decisions to invest and then sell at the wrong time. I guess she spent $1000 to learn that her brother has no idea what he’s talking about, which is a little steep, but still a good lesson.
Your sister is an idiot.
Nta.
Your sister is the AH for taking financial advice from a teenager and then doing the dumbest thing possible and selling at a loss.
ESH – Everybody’s Stupid Here
You, because you pointed your sister in the direction of the markets and it doesn’t sound like you gave her any cautionary advice (e.g. “don’t do this if you’re not sure what you’re doing”)
Your sister, because… where do we start?
Your mum, because she’s coddling a 22 yr old woman who should probably know better.
Am i the only one out here wondering how a 22 year old just had 10k lying around to invest?
Probably saved through high school and was generally good with money after and didn’t go to college/uni.
From the coddling of the mom likely lives at home or lived at home after highschool with cheaper or no rent.
NTA. Your sister investing $10k because her 19 yr old sibling who has been trading for a few months, is an idiot.
Your mother is right, you aren’t qualified to be giving financial advice but you didn’t “trick” anyone and investing comes with risks and your sister isn’t qualified to be investing if she doesn’t understand some basics about the market.
Neither of you should have trading accounts.
ESH. Stop playing financial advisor. You have no idea what you’re doing.