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Started By
Message
re: Rookie trader racks up $700K in debt trading options on Robinhood, takes own life
Posted on 6/17/20 at 5:36 pm to Mr Perfect
Posted on 6/17/20 at 5:36 pm to Mr Perfect
quote:
wonder if your son in our rh trading army
Hell no. It’s good companies for long term, buy and hold. He used to use Folio because of the steeply discounted fees before RH came around.
BTW, to NC_Tigahs credit, if you dipsh!t$ we’re half as smart as you think you are, you would be using a brokerage with OTC and pre market trading capabilities. But, your not.
2
Posted on 6/17/20 at 6:41 pm to LSURN98
nope dude. need Robinhood specifically
Posted on 6/17/20 at 6:46 pm to LSURN98
evidently the deceased traded a bull put spread and flipped out when one leg closed before the other one did, this happened on a Friday and likely the other half of the trade wouldn’t settle until Monday
so it wasn’t even RH’s negligence unless you think that showers of confetti and a video game interface shield the user from the actual realities of complex options trading. This appears to be a case of one of mr perfect’s soldiers thinking he was playing call of duty with stock options
so it wasn’t even RH’s negligence unless you think that showers of confetti and a video game interface shield the user from the actual realities of complex options trading. This appears to be a case of one of mr perfect’s soldiers thinking he was playing call of duty with stock options
Posted on 6/17/20 at 11:53 pm to cgrand
Posted on 6/18/20 at 5:03 am to thelawnwranglers
You can kiss commission free, no minimum balance trading accounts good bye, bubba.
Posted on 6/18/20 at 6:33 am to thelawnwranglers
I am not sure how Robinhood is responsible. You sign documents acknowledging you are aware of risks of trading. There are even additional documents that have to be signed for options trading.
The ones that could potentially get hit are those that purposefully manipulate market values and even conspire with others to do so. WutangFinancial has admitted to such activity going on and in such a fashion that the pros even make fun of people they harm calling them “bagholders” and that it goes on everyday. In front of the right judge, I can easily see them allowing discovery to expose this through discovery of internal emails and documentation. If that happened, and proof is found of that happening in stocks this kid traded in, it really could be a game changer.
WutangFinancial Bagholders
Even Cramer acknowledges this is happening. There are some judges in this country that would require him to disclose how he knows that is going on with a deposition.
Cramer thinks pros play game with RH
The case may not go very far, but with the right plaintiff’s attorney it could really rattle the industry and it would not be Robinhood that is the target.
The ones that could potentially get hit are those that purposefully manipulate market values and even conspire with others to do so. WutangFinancial has admitted to such activity going on and in such a fashion that the pros even make fun of people they harm calling them “bagholders” and that it goes on everyday. In front of the right judge, I can easily see them allowing discovery to expose this through discovery of internal emails and documentation. If that happened, and proof is found of that happening in stocks this kid traded in, it really could be a game changer.
WutangFinancial Bagholders
Even Cramer acknowledges this is happening. There are some judges in this country that would require him to disclose how he knows that is going on with a deposition.
Cramer thinks pros play game with RH
The case may not go very far, but with the right plaintiff’s attorney it could really rattle the industry and it would not be Robinhood that is the target.
This post was edited on 6/18/20 at 6:35 am
Posted on 6/18/20 at 6:58 am to LSURN98
quote:Right. In the past RH pushed no-fee stock trading. Good.
Guess what? RH did the same for investing.
For someone trading in small enough aliquots to make a $5 transaction fee impactful, RH's no-fee platform was a boon. However, transaction fees have now disappeared across the board. No-fee service is no longer a differentiator.
But even if it was a differentiator, even if fees were still in place elsewhere, just one day of a RH crash would have cost me more than all the discount brokerage fees I've ever spent...combined...ever. I'd suspect that would be true for almost any trader, and so far, RH has crashed 3 times this year.
Transaction fees are only part of the story though. The kid knighting for RH here intimates he's working cryptocurrency stock trades. RH pioneers in offering that option. CST affords a theoretic advantage of USD:Crypt exchange rate leverage during transactions, and RH USD=>crypto conversion is free, so that is nice.
But there are issues with crypto trades. E.g., the spreads are larger. Maybe supply-demand renders those less of an issue in smaller transactions. Regardless, expanded crypto buy-sell spreads can chew up potential currency advantages.
The bigger downside relates to any uninvested cryptocurrency being maintained in uninsured RH accounts. To its credit, RH is upfront about crypto loss risks. So if an account is hacked, or RH somehow loses the crypto, the customer is simply SOL.
For a glitchy platform, that possibility should give investors serious pause.
Posted on 6/18/20 at 7:11 am to go ta hell ole miss
quote:Responsibility?
I am not sure how Robinhood is responsible.
That never stopped an inventive PI lawyer.
Posted on 6/18/20 at 8:24 am to go ta hell ole miss
quote:
am not sure how Robinhood is responsible. You sign documents acknowledging you are aware of risks of trading. There are even additional documents that have to be signed for options trading.
yup 100 rh is gucci
Posted on 6/18/20 at 8:28 am to NC_Tigah
Posted on 6/18/20 at 9:56 am to cgrand
quote:
evidently the deceased traded a bull put spread and flipped out when one leg closed before the other one did, this happened on a Friday and likely the other half of the trade wouldn’t settle until Monday
so it wasn’t even RH’s negligence unless you think that showers of confetti and a video game interface shield the user from the actual realities of complex options trading.
I've never seen RH's interface and didn't know what you were talking about until I read the story.
“Tragically, I don’t even think he made that big of a mistake. This is an interface issue, they have slick interfaces. Confetti popping everywhere,” says Brewster referring to the shower of colorful confetti Robinhood routinely deploys after customers make trades. “They try to gamify trading and couch it as investment.”
I'm sorry about what happened with this kid. He was clearly WAY out of his element. And I'm sorry for all the bad lessons a lot of younger (and older) people are learning during this unusual time in the markets. Rather than investing or trading, a good many just seem to be blindly gambling... no risk management, no plan, no strategy, no what-ifs - just hunting this site and others for the hot tip du jour.
God bless 'em.
Posted on 6/18/20 at 11:14 am to Mr Perfect
quote:"Fear mongering" ... oh well.
lol hey dude.. no one hacking rh crypto. stop the boomer fear mongering
(1) " lol hey dude"..Oooops!
(2) " no one hacking rh crypto"..Maybe you're right. Maybe you're not.
(3) Bitpoint Hack Shows That Regulators’ Scrutiny Does Not Equal Safety
(4) World’s largest Bitcoin exchange hacked to the tune of a half billion dollars
(5) And Yet Another Unforeseen Breach. . .
(6) Even "unhackable" blockchains are now getting hacked.
File these under "Where there is a will, there is a way," or "Never say never."
Of course, none of this means RH will be hacked, but the common element of each above instance is a prior assumption of impossibility. Risk mitigation is usually not about protection from the probable, but rather from the highly improbable or "impossible".
E.g., Our portfolio is sectioned in multiple accounts, not because we expect brokerages to go belly-up, but to maximize SPIC and insurance protection in the event of that "impossibility".
Some people are just lucky though. If the "impossible" happens to RH (yet again), maybe you'll come through it as unscathed as this little guy. I've been around long enough to know the "impossible" happens. Bad and good ...
Posted on 6/18/20 at 11:17 am to NC_Tigah
quote:
Responsibility?
That never stopped an inventive PI lawyer. ?
This - not saying they should be responsible just saying their is risk
Posted on 6/18/20 at 12:06 pm to NC_Tigah
okay dude.. guess what I'll be moving all my btc into paper wallet as soon as our plan is over
Posted on 6/18/20 at 12:11 pm to Mr Perfect
quote:
as soon as our plan is over
Posted on 6/18/20 at 12:44 pm to Mr Perfect
quote:
all my btc
And just how much is that? You are so full of it. Just go away.
And quit calling people boomers. Have some respect for your elders. That generation has accomplished more than millennials and z will ever even fathom.
Posted on 6/18/20 at 12:52 pm to LSURN98
boomer generation has us in this mess and don't worry about my btc holdings dude. just keep worrying about your inflationary fiat. got it?
Posted on 6/18/20 at 12:57 pm to Mr Perfect
Y'all should just stop engaging this clown.
Posted on 6/18/20 at 2:14 pm to shackleford318
quote:THANK YOU!
Please tell me no one believes this ridiculous story, there’s no way that could happen to a 20 year old with minimum collateral.
This is bullshite - a 20 yr old didn't just download an app and start trading. There's no way he could get that deep on margin without his account getting flagged. That's not how this shite works.
Posted on 6/18/20 at 2:19 pm to RT1941
quote:
This is bull shite - a 20 yr old didn't just download an app and start trading. There's no way he could get that deep on margin without his account getting flagged. That's not how this shite works.
There is no margin required. Only Level 3 options. A simple put spread gets executed early, and the app shows that you're thousands of dollars in the hole. You have to wait for them to sell or execute the puts that you bought to balance out the puts that you sold.
This post was edited on 6/18/20 at 2:20 pm
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