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To: Sultan who wrote (5796)6/17/2020 5:36:23 PM
From: Return to Sender
1 Recommendation   of 5824
 
It's just so sad to think that so many people are now trading stocks and options with no idea how much they are putting on the line with a margin account.

Some are young. Some are just new to the market.

When I was both; I suffered through a lot of learning the hard way. Like to never place a market order for a large number of shares of a thinly traded stock and expect the price to be anything remotely close to what it was selling for at the time the order was placed. I still cannot believe how much they walked the price up to this day.

Since then nothing but limit orders.

I also later ended up with a margin call trying to catch a falling knife of a stock.

Inexperienced investors buy stocks and options thinking that huge gains are the almost guaranteed.

After all everyone is making huge money even the guys that used to make money betting on sports are killing it. It's 1999 all over again in my opinion.

The FED has created a false sense of security for the uninitiated trader/investor. The rotational and irrational speculation in stocks that either are declaring bankruptcy, or clearly could soon be bankrupt companies, is a sure sign of that fact.

People can and do lose more than their money using a margin account.

Definitely tragic...

RtS

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To: Return to Sender who wrote (5800)6/18/2020 10:54:34 AM
From: The Ox
1 Recommendation   of 5824
 
With day trading rules, if you have more than 25K in your account, you can leverage many times over that. There should be regulations that prohibit someone with 16K in an account to be trading options with notional values over that amount, especially 50 times more!!

It shouldn't matter if he's taking both side of the trade with a put/call combo, IMO.

RtS,
Your examples are exactly why education is critical before trading stocks. There seems to be a massive the lack of knowledge, where the old expression "you swim with sharks, there's going to be blood spilled" (or some variation of these words) was always understood.

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To: The Ox who wrote (5797)6/18/2020 11:15:32 AM
From: Bocor
   of 5824
 
Why anyone would kill themselves over money??

I know more than one experienced trader who has done so with an overallocated positions that blew up. One shot himself in the head over an upside down AMZN earnings trade.

Part of the reason the opiate crisis grew so large was over jobs and money. Take away a person's ability to provide for his family, and the the escape into the Oxy-heroin world is very tempting. Many of them are slow suicides.

Most of the time it is not publicized. If it were my child, the last memory I would want is NOT a Forbes article about his suicide.

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To: Bocor who wrote (5802)6/18/2020 12:31:54 PM
From: Robert O
   of 5824
 
A lot of people over history have killed themselves over money, love, etc. humans are emotion driven animals.
Anyway, even the Forbes article does a poor job of explaining the most important aspect of the final leg of his option strategy but at least they are likely onto just what the underlying facts were here:
forbes.com

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To: Robert O who wrote (5803)6/18/2020 12:42:24 PM
From: Bocor
2 Recommendations   of 5824
 
Whether Forbes got anything right or wrong, yes, it may be a lesson to the hundreds or thousands of other Robinhooders, but his parents had to have a say on whether or not it became a national story.

I just strongly believe that his parents will regret the article and publicity, not to mention any relatives.

He looks like one of those high school kids who may not have been "Captain of the football team", and his memory should not be this.

Enough said. It is incredibly sad, and I'm sure his family will never stop asking what they did wrong.

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From: Sultan6/18/2020 5:39:09 PM
1 Recommendation   of 5824
 

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From: Sultan6/28/2020 1:13:08 PM
1 Recommendation   of 5824
 

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To: Sultan who wrote (5806)7/7/2020 9:40:14 AM
From: The Ox
1 Recommendation   of 5824
 
More and more I'm reminded of WCOM, LU, VTSS and many other stocks from 1999-2000.

Buyers beware

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To: The Ox who wrote (5807)7/7/2020 12:08:38 PM
From: robert b furman
1 Recommendation   of 5824
 
Hi Ox,

Me too.

Here's the next wealth killer - whenever it happens: TSLA!

Bob

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To: robert b furman who wrote (5808)7/7/2020 12:19:27 PM
From: The Ox
1 Recommendation   of 5824
 
TSLA price to cash flow of 25x. AMZN at 23. NVDA at 38!! Compare to AMAT and LRCX at 13.

FB and AAPL around 15. GOOG at 17 and MSFT at 21.

I understand the concepts of safety in the blue chips and the theory that time will eventually catch up to the valuations of today. Not all of the futures are going to be as smooth for these companies to generate cash as the market seems think.

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