How to lose money in a rising market! I have done it and so can you.

We have written previously about how to make money in a falling market. It takes special talent, and yes, we have done it. It is possible.

Losing money in a rising market  also takes special talent; it is almost impossible.  I recently did it nevertheless, but I am in good company. Billionaire Eric Sprott, for example.

The upside of my losses is that I incurred them in my “fun” portfolio. Right now, it is not much fun, but the pain is bearable since it is a small percentage of my overall investments. No one needs a “fun” portfolio. If you have one, make sure that it is small relative to your core portfolio.

The upside for Sprott’s losses, from his perspective, is that he incurred them for other people (while personally becoming a billionaire thanks to the size of his assets under management).

For details about Sprott’s clients’ losses, go here.

For details about my losses, well, here we are. I ignored habit number three.  Namely, instead of buying a US market index exchange-traded fund, I bought a single stock – Novavax (NVAX) in order to sell covered calls on it. The premiums were exciting! (Don’t pick stocks is good advice.) The risk of writing (selling) covered calls comes from the underlying security entirely. NVAX tanked to a much greater extent than the premium income that I got from writing covered calls on it.

You too can lose money in a rising market if you do what I sometimes do. Just make sure that it is not in your core portfolio or, if you manage money for others (as some of our members do) make sure that others incur the losses. You’re not in a popularity contest.


We have designed the Monday Morning Millionaire Program to offer abstracted investment education. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.

The program does not provide any investment advice or endorsements.

Members can read our posts in less than five minutes. Following and studying the links embedded in these posts would take longer. How members manage a post depends on their level of interest and investing knowledge.

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me