Rookie Trader Racked Up $700K In Debt

[Nobert]

The amygdala, brain part, which is responsible for the sense of responsibility, for some of us, is growing up/forming till 30 y/o.
Combine that with average iq & there's a delusional - half kid.
It was a financial rape.

The CEO of RH , could make it public that it will be ,,forgiven" for him (boooost in public rep) & from now on, new rules will apply, so the nonsense like this, would never happen again.

 

[Girija]

I don't comprehend how these ppl got the leverage in the first place.

 

[Amun Ra]

More than likely the kid got his options exercised and just saw a negative cash balance and didn't understand he had $700k in shares. Like this.

 

[d08]

Huh? Kid took his own life. Everyone will suffer - the kid, his parents, the rest of the family, relatives and friends.

Eeeeeeveryone else, not so much. Boo who RH might tighten things up a bit. Might!

I don't mind one broker tightening things up but it's often the regulator that can implement some inane changes. The idea is still "system is to blame, not him" and that's problematic.

 

[southall]

More than likely the kid got his options exercised and just saw a negative cash balance and didn't understand he had $700k in shares. Like this.

If that was really the case, and that was really the reason he took his own life, then the kid deserves a Darwin award for eliminating himself from the gene pool . I only say that because i cant believe that would be the case.

 

[Amun Ra]

If that was really the case, and that was really the reason he took his own life, then the kid deserves a Darwin award for eliminating himself from the gene pool . I only say that because i cant believe that would be the case.

He was a 20 year old unemployed kid that probably spent a lot of time on wallstreetbets. You gotta give him a break. There are a lot of people very ignorant about options and what they even are. Robinhood is also a shit app that doesn't really give you any insight into your balance/margin/equity all on one screen like every other broker.

The uncle posted on twitter that is what he thinks happened because how else can you get a negative $700k balance?

 

[Cuddles]

He should incorporate & issue bonds. I hear the fed's buying

 

[Snuskpelle]

I don't mind one broker tightening things up but it's often the regulator that can implement some inane changes. The idea is still "system is to blame, not him" and that's problematic.

Agreed. My favorite example of regulation gone too far for retail is PDT which is directly harmful to risk management and systematic trading. Another is the EU prohibiting me as a EU citizen to trade American ETFs (like WTF).

 

[BAT31]

Dodd-Frank needs to be amended...

 

[Nobert]

Damn. Didn't knew that he suicided.
(haven't finished reading those tweets, i know, i know... )
Thought that he ,,just'' lost. Now looking back at comments that i wrote, looks like the one on drugs thyself.

Not worth loosing over truly. But young folks suicide for lesser things.

After a break-up, being humiliated in public, damn, this girl :

- due corona fear. (not only because of that, but because there was noone next, with clear mind/rational thinking, to calm her down)
https://www.elitetrader.com/et/threads/uk-teen-19-suicide-due-cv-fears.342329/

Part of the life. Some, biologically, has just not enough of dopamine receptors (whatever it is that produces it), so from the moment that they're born, they're basically ,,doomed'' to be always slightly sad.
Simply put, some will experience happiness at 10/10
and some will be sealed to 7/10 (at the best case scenario)
From which comes slightly suicidal thoughts that evolve into the darkest depression.
My best friend's girl suicided recently , 27 y/o, beautiful woman. Nothing helped.
Saddest part, family and he, kinda saw it coming for a year.

Sad. But, one can only accept the reality as it is.