Think You Lost Some Money - Try a $3 million Loss

Written by The Dividend Guy on September 25, 2006

Posted only for the simple fact that the hedge fund trader is from my hometown of Calgary and actually works out of the building I work out of, I am proud to say that the losses that I have realized in the market are nothing like the $3 billion loss by one trader on Natural Gas prices. Kind of puts my little piece of investing activity in to perspective.

To me, a lot of this story sounds like pure speculation. I am sure that there were huge algorithms being used and many highly educated minds being put together to create a trade of this magnitude, but at the end of the day all this firm was doing was gambling that natural gas prices were going to rise. I like them, believe that they will rise in the near future. However, these guys just missed the mark in their timing IMHO. Talk about watching your money go up through a flare stack!

Amaranth Flare Stack


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2 Comments so far

  1. Canadian Capitalist September 25, 2006 9:58 pm

    Actually, they lost something like $6 Billion or two-thirds of their equity in a matter of weeks!

  2. empty spaces October 1, 2006 9:37 pm

    the heading says million instead of billion!

    also check out the competition on my blog and enter for your chance to win $50 gift certificate.

    http://moneyshakerblog.com/2006/10/competition-announcement.html

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