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Rookie Trader Racked Up $700K In Debt
- Thread starter ironchef
- Start date
I believe it during this Pandemic when most are under to stay-at-home orders except essential workers.
It correlates with something Baron said himself...the membership and posting here at Elitetrader.com is up multiple folds...correlating with what other financial forum owners have stated.
Yet, with a surge like that of inexperience traders flooding the market...some crazy stuff (good and bad but mostly bad) is going to happen around the corner.
https://www.marketwatch.com/story/c...end-well-warns-princeton-economist-2020-06-17
Here at ET...I'm expecting to see a surge in one stop / inexperience wonders posting about hundreds of % gainers, understanding of the price actions, expert educators with only a few months of experience at chart analysis, mental illness stories, sad financial stories and so on...
All of this by new members and old members that have been away from the markets for many years but have returned back to trading / posting here at Elitetrader.com or recently moved here to Elitetrader.com from other trading resources.
Brokers, charting vendors and other trading services will see this as a bonanza...they're going to enjoy it while it last until the Pandemic has concluded.
To be more direct...the quality of new traders has dramatically decreased and it reminds me about the surge in daytrading in the early days of the dot.com days...
Everybody was an expert.
In reality, most of them can't handle the psychological pressure...small cracks quickly turn into temper tantrums and crazy market swings. Brokers, trading platforms, charting vendors and other retail trading resources...
At the end of the day, the quality in those new members is not there.
wrbtrader
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Its possible that Robinhood grew so fast / clientele grew so fast...they hired new employees that either were inexperience, not fully train to monitor risk assessments or they didn't had adequate software to monitor risk assessments.
wrbtrader
Not necessarily. You just need to have sufficient collateral in the account.
Obviously the young man had underlying issues. Of all the things that seem important and insurmountable, money just isn't that important, especially to a young person. Did he think somebody was going to come kill him about the money, like in a gangster movie? Is it possible that a college student don't know how to google bankruptcy? Did he not even consider asking about his situation?
This entire story seems off, somehow.
This entire story seems off, somehow.
He wasn't the best looking chap (i say that as an un ugly nerd myself), making a big pile of cash was his best chance of finding a girl friend who wasn't a 1 out of 10. Perhaps any girl friend.
Quite sad actually, but it is the actual reality of this "business". I have traded alongside successful traders, who eventually committed suicide (3). But the saddest case was a Stanford Philosophy Major, who was the nicest person in the world. He ended up in a mental asylum for like 6 years after a massive loss in HIFN,
https://money.cnn.com/1999/10/08/technology/hifn/
https://money.cnn.com/1999/10/08/technology/hifn/
I still think there were other problems in his life (like school, employment, money, family,...) that led him to commit suicide (probably, he traded the money that he couldn't afford to lose like student loan...) or was the options position a losing position? that would take a big chunk out of his account....
[Jesse Livermore also killed himself].
[Jesse Livermore also killed himself].