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To: Sultan who wrote (5796)6/16/2020 6:45:22 PM
From: The Ox  Read Replies (1) | Respond to of 5824
There are too many issues with this situation, hard to know where to start. Tragic, for sure and as good intentioned as it was for this person to "share" on Twitter, is that really a proper way to handle a situation like this one?

Giving out only a fraction of the information just leaves me with too many questions. About this person, the young man, the family, why anyone would kill themselves over money, who raised him and how was he raised, and on and on....


To: Sultan who wrote (5796)6/16/2020 8:34:31 PM
From: Robert O1 Recommendation

Recommended By
The Ox

  Respond to of 5824
I saw this story though I don't use twitter. I saw this recent post tonight from what appears to be a RH trader. and of course we all need to wait to find out the actual facts in this [still purported] tragic case but we can suspect this is what may have happened here since if a 20 year old with little income it would seem impossible to truly be exposed like this (unless he really had deposited say an inheritance of 800k no indication the case here) much more likely the below.

Autumn Capital@AutumnCapital
Replying to
and @RobinhoodApp
Tragedy because this is a fault in RH's UI since the very beginning.
When you open a defined risk trade, notional exposure can be massive while net exposure is pretty minimal. RH shows notional exposure when options are being settled at expiry, easily scaring new traders.

P.s. me again. for basic examples see-
Thinking about this if you had very short dated options way out of money you could 'control' a very large notional position with a relatively modest amount of money if you are looking to hit either a homerun ball or strikeout. he may have figured worst case lose that entire investment but then sees that shocker negative cash number. argggg.

To: Sultan who wrote (5796)6/17/2020 5:36:23 PM
From: Return to Sender1 Recommendation

Recommended By
The Ox

  Read Replies (1) | Respond to 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...