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
thread in which he shared a family member’s tragic foray into trading.
Here’s the full story:
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.
“All of us at Robinhood are deeply saddened to hear this terrible news and we reached out to share our condolences with the family,” the spokesperson said.
“Alex’s” story serves as a reminder that trading stocks can have devastating real-life consequences. This has perhaps never been more true than when it comes to using borrowed cash to leverage positions in a stock market where the Dow Jones Industrial Average
can be down almost 2,000 points one session, then rebound nearly 500 points the next.
Inexperienced traders have been cited as a driving factor in the big bounce of the market’s late-March lows and the recent volatility. Deutsche Bank analyst Parag Thatte suggests that Wall Street professionals are being forced to chase amateurs who continue to bid up equities.
Read:It’s like the Wild West with ‘get-rich-quick crowd’ vs. Wall Street pros, but it’s too easy to blame retail investors for ‘rampant speculation’
CNBC’s Jim Cramer on Friday also addressed the dangers of the current climate.
“It got too easy, and now we all have to suffer as the get-rich-quick crowd gets blown out,” he said on his “Mad Money” show, describing the current environment as one of “rampant speculation.”