Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
The article I read said he's 32. One of the comments noted that after he liquidated, the stock dropped by 50%. So if he'd waited the three-day period he'd owe only 50k. But who would be able to do that? Who has the nerves? That's just an extra twist of the knife right there.
I remember the Swiss Franc move in January. I trade a foreign currency overnight and of course I do keep a stop in place, but it makes me wonder if it's just a matter of time...
I just donated to this guy, I feel for this guy and I donated because it's a very valuable lesson to every trader...Thanks Mike for sharing...I know ETRADE suck but this is huge
I think he said he was a new trader, only trading for 6 months. Did you know everything there is to know when you only had 6 months experience?
I think the kid deserves a little sympathy, if nothing else. I'm not sure how much 130k is in relation to his total net worth, but for most 32 year old's it would be quite a bit. The fact he is liquidating retirement accounts and still needs a payment plan gives some insight.
That's a tough market lesson indeed. I've made some pretty big mistakes when first trading but nothing on that level.
As you say, leverage (too much) and diversification (too little) are the key lessons there. Also, these types of stocks can be extremely volatile. If only he had decided to buy puts instead or covered his position with some likely cheap call protection...
No, I didn't then and I don't now. My knowledge is rudimentary at best, but I know at least not to get my head blown off by a trade and to treat the market with a modicum of respect. This guy did neither and now wants a parachute. I hope he can bounce back from this, but he must have known this was a possibility.
Platform: Sierra Chart, TOS, Tradestation, NinjaTrader
Trading: energy
Posts: 114 since Jul 2012
Thanks Given: 81
Thanks Received: 172
I've never been in a situation like this, but it certainly seems like the panic after hours sell cost him almost 5$*8400 (42k). Unfortunate that the broker wasn't more supportive and instructive. Spooky man. Sosnoff tells a story of a guy who had several hundred google calls that expired 1 penny in the money, got assigned, and then gapped down on monday to the tune of a 3 million dollar loss/margin call. TDA siezed the account after the guy said he couldnt cover it, and spent 3 hours trading out of the position on the open.
I feel for this guy, who didnt know its possible to get hit for a 15$ move on a 2$ stock. As one of my favorite mentors once told me "don't carry gold or crude short over a weekend, bud"