Negative $700K on Robinhood account

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DesiDucati

Well-known member
What even more crazy is that on Monday, his account might even be in the positive. This news has made me even more wary of options.
 
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asdfghwy

Well-known member
it's definitely not the platforms fault but I feel for the kid. the poor guy probably saw -700k and thought his future just went out the window
 
GAJ

GAJ

Well-known member
These kids want instant success rather than the decades of sacrifice us old boring farts took to achieve it.

Condolences to family and friends of this gullible young man.
 
cheez

cheez

Master Of The Darkside
GAJ said:
These kids want instant success rather than the decades of sacrifice us old boring farts took to achieve it.

Condolences to family and friends of this gullible young man.
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Why shouldn't they? They don't see a vastly successful middle and upper middle class anymore, we've offshored that to China and India. They only see poor and the lottery winning extremely successful. You're either in poverty or you're Post Malone or Machine Gun Kelly or Lebron James. There is no inbetween anymore.

https://www.businessinsider.com/american-kids-youtube-star-astronauts-survey-2019-7

Neil Armstrong became a role model in the eyes of kids everywhere 50 years ago when he became the first person to walk on the moon on July 20, 1969.

Kids in a recent survey, however, were much more likely to aspire to be the next YouTube star rather than the next person in space. The survey, conducted by Harris Poll on behalf of Lego, found that children in the US and the United Kingdom were three times as likely to want to be YouTubers or vloggers as astronauts when they grow up.

The survey asked 3,000 kids ages 8 to 12 to choose from five professions to answer which they wanted to be when they grew up: astronaut, musician, professional athlete, teacher, or vlogger/YouTuber. Though the top choice among kids in the US and the UK was vlogger/YouTuber, 56% of kids in China said they wanted to be an astronaut.
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Yakoo752

Yakoo752

USN
wannabe said:
https://www.forbes.com/sites/sergei...eeing-a-730000-negative-balance/#43b643b59286

This is kind of a crazy thing to happen. I don’t even want to imagine how it must have felt to open the app and see that huge negative number on your statement.

I took my money out of the market after the first dot com crash and never returned. Every time I see stuff like this I’m reminded why I stay out.

Poor kid...
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It's based on how the options settled. He didn't have a real loss and didn't understand what was being shown to him. Complete shite that the robinhood app showed him what it did but it appears that the trader didn't look into it much either. A quick look at your settled trades would have showed the gap.

Also to note, there is absolutely 0 way that a broker would allow him to make trades to this depth without collateral on hand.

The most I've ever been extended is 25% over my total account value as a level 3 options trader. Depending on platform, there are up to 5 levels with significant differences in risk and exposure. You have to "earn" the right to trade at those levels. Remember, if you can't cover your costs the broker, by law, has to.
 
Mike95060

Mike95060

Work In Progress
GAJ said:
:laughing

Because it is idiotic?
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The point is its not though. Sadly it makes a lot of sense to risk everything when there is no viable middle way. It actually a rational thing to do if your other option is poverty.
 
byke

byke

Well-known member
I hate options. It's just a bunch of nonsense created by a middleman for the purpose of generating trade revenue for themselves without having any skin in the game while pitting average joes against each other, kind of like the Death Race of the trading world, with the promoter being a giant pos.
 
wazzuFreddo

wazzuFreddo

WuTang is 4 the children
byke said:
I hate options. It's just a bunch of nonsense created by a middleman for the purpose of generating trade revenue for themselves without having any skin in the game while pitting average joes against each other, kind of like the Death Race of the trading world, with the promoter being a giant pos.
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They're great if you have a large amount of raw materials to buy/sell and want to set up a hedge on the current price to make sure your business isn't overexposed to market fluctuations. Or if I wanted to lock in the current stock price for RSUs that were going to be granted in the future.
 
byke

byke

Well-known member
The vast majority use them for trading which never realizes any ownership/loss of actual stocks and it's designed such that-that's the most lucrative use, otherwise it would never have any actual connection to the markets and probably only does out of a legal requirement to not be considered straight up poker gambling
 
Killroy1999

Killroy1999

Well-known member
GAJ

GAJ

Well-known member
Mike95060 said:
The point is its not though. Sadly it makes a lot of sense to risk everything when there is no viable middle way. It actually a rational thing to do if your other option is poverty.
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Well, I don't see it that way but if that is the "consensus" of the privileged children in the US then there is little hope for this world.

But I suspect those trying to immigrate to the US have a better handle on what is possible here than those who have been born here.
 
ScarySpikes

ScarySpikes

tastes like burning
asdfghwy said:
it's definitely not the platforms fault but I feel for the kid. the poor guy probably saw -700k and thought his future just went out the window
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Maybe. I really think that gamification is not a good thing for stock trading though. It makes it way too easy for someone who doesn't know what they are doing wade way too far into risky and unpredictable betting instead of more sound and stable investment strategies.
 
byke

byke

Well-known member
I wish we didn't feel like money meant so much. The vast majority would literally starve to death without grocery stores and grocery stores are corporations, so we wither away and die without corporations. That's ridiculous. I wish we had markets like the rest of the world. Many people grow things, then trade or sale, and simply "living" becomes much less reliant on a little piece of paper or shiny piece of metal.
 
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chickenfried

Super Noob
What option do you think is missing here in the bay area? What place would you cite as an example of what you'd like?

byke said:
I wish we had markets like the rest of the world. Many people grow things, then trade or sale, and simply "living" becomes much less reliant on a little piece of paper or shiny piece of metal.
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byke

byke

Well-known member
Pretty much all of South American and Asia, rural Europe as well. Not sure the bay area needs anything to change, it's the antonym of what I'm talking about.
 
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