The stock market, particularly in its current state, is no place for amateurs.
Sullimar Capital analyst Bill Brewster delivered that message to followers in a heartbreaking Twitter TWTR, +1.12% thread in which he shared a family member’s tragic foray into trading.
Here’s the full story:
My cousin in law was interested in investing. He opened a Robinhood account. And, he seemed to be enjoying the markets. As many of us do, or have done, he got interested in options. He believed he had “no margin” selected on his account.
So, he began buying and selling options. Fast forward to some time this past week and his account showed him owing $700k+. How does a 20 year old with no income get access to that kind of leverage/exposure?!
The emotional stress from the exposure caused him to take his own life. I don’t feel right sharing this, but I also don’t feel right keeping it from the world.
But here’s the truth. AND PLEASE PAY ATTENTION TO THIS IF YOU’RE YOUNG.
The markets are bananas right now. It’s not the time for amateurs. Really really pay attention to position sizing. Stay away from exotic instruments like options and futures.
udge investments on their own merits, as you understand them.
And, if you find yourself in a world of **** please talk to your family. Listen to @QTRResearch and @sanglucci pod about blowing up. ****, hit me up. You are not alone. Finance isn’t worth losing your life over.
Robinhood declined to share any details of the trading account and how such outsized losses piled up, but did say that the company was aware of the situation.
