8 min
Robinhood Trader Commits Suicide After Large Trading Losses The Option Genius Podcast: Options Trading For Income and Growth
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- Investing
People literally ask me this one question ALL THE TIME… “Allen, how did come up with such a lucrative, safe, and easy way to trade?” I explain it all in my new book Passive Trading, get your free book here https://www.passivetrading.com/free-book!
Option Genius was built with you...the individual trader, the breadwinner, the dreamer, the rock your family depends on ...in mind. Because we know what it takes to become a successful and profitable trader. And that’s exactly what we help you do best. Get your $1 trial of Simon Says Options, our most conservative and profitable trading service here https://simonsaysoptions.com/stockslist-ss-trial-offer.
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Passive traders, I hope you are well wherever you are. As I record this, corona is still with us. Not the beer, the disease, the virus. And the economy is opening up again almost everywhere. It's open in some form or fashion in the United States, and the stock market is jumping up and down both without any rhyme or reason in many cases. But the Fed is behind us, and with that, I believe with the Fed pumping as much money into the economy, the stocks are only going to rally, and so people are really trying to take advantage.
I had a friend who is a friend of the family. He just graduated from college about a year ago. He was working full time and he got laid off. And so I had helped him and walked him through the whole unemployment process of how to apply for it and whatnot. He started getting his checks and his checks were in the vicinity of about $700 or $800 a week. This was more than he was making from his job because he was working on a commission basis as a salesperson. And so now he's got more money coming in than he's ever had before.
And when I checked in with him, his comment was, "Yeah, I can't wait to put this money in my Robinhood account." That threw me for a loop. I said, "Wait a minute. You have no income. You have all these expenses. What do you mean you're going to take all your money from unemployment and put it in your Robinhood account? You're going to gamble it? I don't understand." I was like, "No, man. You just graduated from college. Your mom paid for everything. Your mom is working seven days a week. You need to go take this money and give it to her." And that kind of, he was like, "Oh, yeah, right. You're right. You're right." I don't know if he did or not, but that kind of told me what the thought process is of some of these youngsters.
I was talking to another relative. He came over and he said, "Yeah, I'm in the stock market now." This one is a little bit older. He was about 26-years-old or so. And he's like, "Yeah, I'm trading. I'm in the stock market." I was like, "Oh, really." "Yeah. I bought some airlines and I bought some cruise lines." And yeah, that's wonderful. But you got to know when you're going to get out. You just can't buy it and hold it forever. These things are probably going to go back down.
Anyway, I'm bringing all this up because these youngsters don't really understand how the markets work. And for some reason, with all the advent of these cheap, free brokers, like Robinhood and Webull, and they're really appealing to the younger kids, and they have more of a gambling mentality. My attention was drawn to an article where on June 13th, a fellow named Bill Brewster who works at Sylmar Capital, basically he's in the financial space, he's an analyst, he posted that his cousin had just committed suicide. And the reason for him committing suicide was that he started trading in his Robinhood account. Somehow his account showed him that he was owing about $700,000 in losses because he was trading on margin. So Bill is asking, how does a 20 year old with no income get access to that kind of leverage? And it's incredible. It's true.
So if you are a parent and if your child is of this age, in their early twenties, maybe you should talk to them about it because a lot of kids are looking at this as a quick way to get ric
People literally ask me this one question ALL THE TIME… “Allen, how did come up with such a lucrative, safe, and easy way to trade?” I explain it all in my new book Passive Trading, get your free book here https://www.passivetrading.com/free-book!
Option Genius was built with you...the individual trader, the breadwinner, the dreamer, the rock your family depends on ...in mind. Because we know what it takes to become a successful and profitable trader. And that’s exactly what we help you do best. Get your $1 trial of Simon Says Options, our most conservative and profitable trading service here https://simonsaysoptions.com/stockslist-ss-trial-offer.
--
Passive traders, I hope you are well wherever you are. As I record this, corona is still with us. Not the beer, the disease, the virus. And the economy is opening up again almost everywhere. It's open in some form or fashion in the United States, and the stock market is jumping up and down both without any rhyme or reason in many cases. But the Fed is behind us, and with that, I believe with the Fed pumping as much money into the economy, the stocks are only going to rally, and so people are really trying to take advantage.
I had a friend who is a friend of the family. He just graduated from college about a year ago. He was working full time and he got laid off. And so I had helped him and walked him through the whole unemployment process of how to apply for it and whatnot. He started getting his checks and his checks were in the vicinity of about $700 or $800 a week. This was more than he was making from his job because he was working on a commission basis as a salesperson. And so now he's got more money coming in than he's ever had before.
And when I checked in with him, his comment was, "Yeah, I can't wait to put this money in my Robinhood account." That threw me for a loop. I said, "Wait a minute. You have no income. You have all these expenses. What do you mean you're going to take all your money from unemployment and put it in your Robinhood account? You're going to gamble it? I don't understand." I was like, "No, man. You just graduated from college. Your mom paid for everything. Your mom is working seven days a week. You need to go take this money and give it to her." And that kind of, he was like, "Oh, yeah, right. You're right. You're right." I don't know if he did or not, but that kind of told me what the thought process is of some of these youngsters.
I was talking to another relative. He came over and he said, "Yeah, I'm in the stock market now." This one is a little bit older. He was about 26-years-old or so. And he's like, "Yeah, I'm trading. I'm in the stock market." I was like, "Oh, really." "Yeah. I bought some airlines and I bought some cruise lines." And yeah, that's wonderful. But you got to know when you're going to get out. You just can't buy it and hold it forever. These things are probably going to go back down.
Anyway, I'm bringing all this up because these youngsters don't really understand how the markets work. And for some reason, with all the advent of these cheap, free brokers, like Robinhood and Webull, and they're really appealing to the younger kids, and they have more of a gambling mentality. My attention was drawn to an article where on June 13th, a fellow named Bill Brewster who works at Sylmar Capital, basically he's in the financial space, he's an analyst, he posted that his cousin had just committed suicide. And the reason for him committing suicide was that he started trading in his Robinhood account. Somehow his account showed him that he was owing about $700,000 in losses because he was trading on margin. So Bill is asking, how does a 20 year old with no income get access to that kind of leverage? And it's incredible. It's true.
So if you are a parent and if your child is of this age, in their early twenties, maybe you should talk to them about it because a lot of kids are looking at this as a quick way to get ric
8 min