It is reported that a novice trader, who trades at the stock exchanges but who, at some point, entered $ 700,000 in debt due to leveraged transactions, has ended his life.
It is proved again that the stock market is not for amateurs, especially in the current situation.
Sullimar Capital analyst Bill Brewster wrote the tragic story of a family member to his Twitter followers:
“The incident is very new and I have more questions than answers. It has something in common with the subject that I will talk about a very important event and that I usually talk about here. Perhaps this tragedy that my family has experienced can prevent other families from doing the same. ”
“My cousin was keen on investment issues. He opened an account on Robinhood. He enjoyed trading on the markets. As with all of us .. It was about contracts. He didn’t know there was a leveraged option on his account. ”
“Then he started buying and selling contracts, and soon he saw this week that his account tells him that he owed him $ 700,000. How can a person who has no income at the age of 20 enter such a leveraged transaction? ”
“The stress he experienced as a result of this event caused him to end his life. Sharing this does not seem right to me, but hiding from the world does not seem right. You ask why? Frankly, I was a person who loves daily trade and jokes about it. I was also joking about Robinhood. ”
“But the truth is different from these jokes. IF YOU ARE YOUNG, PLEASE BE CAREFUL OF THIS WRITING! ”
“Markets are very risky right now. We are not in a time when amateurs can enter. Pay attention to the size of the position you take. Stay away from options and futures. ”
“At the moment when Buffet says that attention should be paid … Because no one pays attention.”
“Everything you see on this platform comes from people with prejudices like me. Do not look at how many followers the accounts are or where those people work… ”
“Understand your investments well and evaluate them accordingly. If you find yourself in a shit, please speak to your family. This shit hit me too. You are not alone. Finance is not worth losing your life. ”
“I have one question. If you know Robinhood willingly, deliberately increase leverage or give too much credit, please let me know if you are sure. They are on my radar now and I have a research project about them. ”
“Rest in peace, Alex. I will always miss you. ”
“Final note: I didn’t see the account. I only know my cousin’s last note. He talks about the figure. I said what he said. ”
Robinhood: We were very upset when we heard about the incident
Robinhood, on the other hand, refused to comment on this situation or provide information on how the debt reached this figure.
“We were all very sad when we heard about this incident and wanted to send our head health message,” the company spokesperson said.
This story of Alex is very important in terms of showing how stock market games can have an impact on human life. This story is more accurate than the stories of people who borrowed and leveraged to take advantage of the Dow Jones Industrial Average, which saw 2000 points fall in one session and 500 in another.
As it is known, it is known how great the effect of the inexperienced “traders” in the jumps and the volatility at the time after the fall in the markets in March.
Deutsche Bank analyst Parag Thatte argued that Wall Street professionals were struggling to “catch” amateur investors who increased their stock prices.
CNBC’s Jim Cramer also stated on Friday’s program how dangerous the current situation of the markets is and said, “It was very easy and now we will see the crowd who want to get rich quickly explode and we will suffer from it as well.”