Young trader dies by suicide after thinking he racked up big losses on Robinhood

[Swordsoffreedom]

First of all, I want to say that "suicide is not a solution". if you lose once just try again, hope you will gain. we all know that all businesses have risk, nothing can be done without taking risk or challenge. If you lose and get frustrated, then business/crypto trading is not for you. because as a trader I know that there will be many remarkable ups and downs while trading, and I adjust my mental state based on that.  As there are good times in people's lives, there will be bad times too. we have to be tough and deal with bad times. we have to work hard to bring back the good days.

[lienfaye]

This is a sad story of a young trader. He might not understand completely the risk of what he do and never been prepared for the worse outcome thats why this happened. Its a huge money as well and for such young age he is not an average guy who is struggling to have a money like that. Well its a lesson learned to those traders who want to try trading, its risky and somehow similar to gambling so make sure that you're aware of the consequences.

[Negotiation]

I think young people's emotions work a little more This is why they do not hesitate to commit heinous acts like suicide out of frustration There is nothing to be frustrated about doing business. Success is possible only by reducing the amount of damage and trying to recover from it No one can ever learn anything in one day It is very easy to make a profit as there are risks in the trade So you have to try to learn by analyzing different places.

[Datheatol]

Why risk if you arent' ready for consequences

P.S by the way where did he take those money from?

[Chato1977]

While some people get richer thanks to Bitcoin or cryptocurrency in general, there are many unfortunate cases. In it, a 20-year-old young man named Alex Kearns committed suicide because he thought he suffered heavy losses when trading on Robinhood.
Less than 24 hours after Alex checked his account at the Robinhood trading application, he found himself at a loss of $ 730,165. Robinhood is a popular cryptocurrency and stock trading application. From 2016 to the present, Robinhood has owned from 1 million users to 10 million users, with loyal followers on social media.

But, Alex seems to have misunderstood Robinhood’s financial statements. On the little yellow note that Alex left on his bedroom door was an ominous message, saying to turn on the computer. Then a four-letter letter appeared on the screen: “If you’re reading this, then I am dead.”

Source: https://www.reddit.com/r/azcoinnews/comments/hcebsa/a_20yearold_trader_who_lost_hundreds_of_thousands/

That is what happen if the trader is not sleeping and just keeping His eyes in Monitor lol.

Trading must not be our life instead we have to make some things outside of this for not to become like this story.

[UserU]

Why risk if you arent' ready for consequences

P.S by the way where did he take those money from?

I think it was from a miscalculated leverage Robinhood displayed. Not that he owed that amount.

https://edition.cnn.com/2020/06/19/business/robinhood-suicide-alex-kearns/index.html

Although Brewster initially believed Robinhood had improperly granted Kearns vast amounts of leverage to trade with, he no longer believes that was the problem. Twitter users who saw Brewster's stream of tweets alerted him that options traders on Robinhood sometimes see a negative cash balance until the other half of their trades are executed.
In other words, Kearns did not actually owe $730,000. But he was apparently led to believe he did.

[boyptc]

It is sad and it doesn't have to go up to that point.

Why risk if you arent' ready for consequences

P.S by the way where did he take those money from?

I think it was from a miscalculated leverage Robinhood displayed. Not that he owed that amount.

https://edition.cnn.com/2020/06/19/business/robinhood-suicide-alex-kearns/index.html

Although Brewster initially believed Robinhood had improperly granted Kearns vast amounts of leverage to trade with, he no longer believes that was the problem. Twitter users who saw Brewster's stream of tweets alerted him that options traders on Robinhood sometimes see a negative cash balance until the other half of their trades are executed.
In other words, Kearns did not actually owe $730,000. But he was apparently led to believe he did.

This means that due to Robinhood's inaccuracy, led to this?  

[gamer4156]

The first step is to gain a lot of knowledge in order to invest your money in a gambling site. You can't always make a profit, you have to keep in mind the direction of the loss all the time. So I shouldn't gamble with money that would get me lost. I think it's a good lesson. The crypto market will teach us to invest very thoughtfully. And those of us who are involved in crypto currencies have to accept losses as well as gains. After all, the value of life is much greater than money.

[peter0425]

While some people get richer thanks to Bitcoin or cryptocurrency in general, there are many unfortunate cases. In it, a 20-year-old young man named Alex Kearns committed suicide because he thought he suffered heavy losses when trading on Robinhood.
Less than 24 hours after Alex checked his account at the Robinhood trading application, he found himself at a loss of $ 730,165. Robinhood is a popular cryptocurrency and stock trading application. From 2016 to the present, Robinhood has owned from 1 million users to 10 million users, with loyal followers on social media.

But, Alex seems to have misunderstood Robinhood’s financial statements. On the little yellow note that Alex left on his bedroom door was an ominous message, saying to turn on the computer. Then a four-letter letter appeared on the screen: “If you’re reading this, then I am dead.”

Source: https://www.reddit.com/r/azcoinnews/comments/hcebsa/a_20yearold_trader_who_lost_hundreds_of_thousands/

He is so young,i feel sorry for His family and hope they will find peace from this.

Maybe this serves us a lesson to not just jump into conclusion always,instead make sure every thing before deciding.

[KiloFoxtrot]

While some people get richer thanks to Bitcoin or cryptocurrency in general, there are many unfortunate cases. In it, a 20-year-old young man named Alex Kearns committed suicide because he thought he suffered heavy losses when trading on Robinhood.
Less than 24 hours after Alex checked his account at the Robinhood trading application, he found himself at a loss of $ 730,165. Robinhood is a popular cryptocurrency and stock trading application. From 2016 to the present, Robinhood has owned from 1 million users to 10 million users, with loyal followers on social media.

But, Alex seems to have misunderstood Robinhood’s financial statements. On the little yellow note that Alex left on his bedroom door was an ominous message, saying to turn on the computer. Then a four-letter letter appeared on the screen: “If you’re reading this, then I am dead.”

Source: https://www.reddit.com/r/azcoinnews/comments/hcebsa/a_20yearold_trader_who_lost_hundreds_of_thousands/

As a general rule, invest only what you can afford to lose also. Win or lose, you learn from your experience and basically try to recoup your losses by risking again, and hopefully, you've learned enough to win more when you invest again in the future.

Take note, we're talking about risks when investing your money, in order to earn more. And we're not talking about risking your life away by doing suicide instead (it's not the intention nor the end goal when investing your money).

[UserU]

He is so young,i feel sorry for His family and hope they will find peace from this.

Maybe this serves us a lesson to not just jump into conclusion always,instead make sure every thing before deciding.

Indeed. Even if he didn't commit suicide, that figure alone is enough to traumatize him for the rest of his life.

Come to think of it, even our retirement money might not save us.

[greenlanternlight01]

While some people get richer thanks to Bitcoin or cryptocurrency in general, there are many unfortunate cases. In it, a 20-year-old young man named Alex Kearns committed suicide because he thought he suffered heavy losses when trading on Robinhood.
Less than 24 hours after Alex checked his account at the Robinhood trading application, he found himself at a loss of $ 730,165. Robinhood is a popular cryptocurrency and stock trading application. From 2016 to the present, Robinhood has owned from 1 million users to 10 million users, with loyal followers on social media.

But, Alex seems to have misunderstood Robinhood’s financial statements. On the little yellow note that Alex left on his bedroom door was an ominous message, saying to turn on the computer. Then a four-letter letter appeared on the screen: “If you’re reading this, then I am dead.”

Source: https://www.reddit.com/r/azcoinnews/comments/hcebsa/a_20yearold_trader_who_lost_hundreds_of_thousands/

really terrible. personally, you need to have a strong and tough mind when it comes to this industry. my heart goes out to the family.

[peter0425]

He is so young,i feel sorry for His family and hope they will find peace from this.

Maybe this serves us a lesson to not just jump into conclusion always,instead make sure every thing before deciding.

Indeed. Even if he didn't commit suicide, that figure alone is enough to traumatize him for the rest of his life.

Come to think of it, even our retirement money might not save us.

the only thing that matters to me(in respect to the dead boy) is how did he managed to have that Huge leverage thinking that He is just a student and has no work at all?

im sure there is something behind this thats why he needs to cut off His life in this one.

I will never Let my children invest here what they cannot afford to lose since all their allowances is coming from us until now that they are in college like the Victim.

[cabron]

We've heard many stories about traders committing suicides in the past for losing his clients money. Its a tremendous pressure from clients when they ask about thier money and so they hang. But for a 20 year old, he should just be partying and enjoy youth. 

As for OP, did you try to lure us to join your reddit sub for this boy's death?

[boyptc]

We've heard many stories about traders committing suicides in the past for losing his clients money. Its a tremendous pressure from clients when they ask about thier money and so they hang. But for a 20 year old, he should just be partying and enjoy youth. 

As for OP, did you try to lure us to join your reddit sub for this boy's death?

But this is a different case. The trader doesn't have any fault but it's the platform's fault why he had done such a thing. 

Why risk if you arent' ready for consequences

P.S by the way where did he take those money from?

I think it was from a miscalculated leverage Robinhood displayed. Not that he owed that amount.

https://edition.cnn.com/2020/06/19/business/robinhood-suicide-alex-kearns/index.html

Although Brewster initially believed Robinhood had improperly granted Kearns vast amounts of leverage to trade with, he no longer believes that was the problem. Twitter users who saw Brewster's stream of tweets alerted him that options traders on Robinhood sometimes see a negative cash balance until the other half of their trades are executed.
In other words, Kearns did not actually owe $730,000. But he was apparently led to believe he did.

[OgNasty]

This was an extremely sad story. Investors really should need to display a certain level of understanding before being granted the ability to use leverage. Financial literacy is not as widespread as many seem to think. I’m constantly amazed at the lack of financial intelligence I see even here on these forums from self-proclaimed experts that couldn’t get an entry level finance job giving others advice.

[UserU]

the only thing that matters to me(in respect to the dead boy) is how did he managed to have that Huge leverage thinking that He is just a student and has no work at all?

im sure there is something behind this thats why he needs to cut off His life in this one.

I will never Let my children invest here what they cannot afford to lose since all their allowances is coming from us until now that they are in college like the Victim.

I think it was how Robinhood portrayed the figures which were "underlying" or behind the scenes. Since I'm on mobile, I can't quote from the article I posted before, but from what I read, they were meant to be negative until the trades on the other end were processed.

So he had high leverage with his 5-figure balance and naturally that gave him some huge purchasing power. For instance, a 100:1 leverage means he gets to control $100,000 worth of stocks with only $1,000.

As I have traded before, brokers usually allow users to set the leverage up to 1000. But by default, we only see the basic readings such as tradeable margin, free margin and balance.

About investing, its not wrong to expose them so they could judge by themselves because its a very good experience (minus the losing). Like how I was curious about trading almost a decade ago and eventually treated it as some part-time activity.

[semobo]

We can't have a perfect life, there will be up and downs for sure so all we need to do is accept what life gives to us and tart living a better life with it.

Young trader might used his parents money that is why he don't know how to earn them back which is the mistake of their parent for giving huge responsibility without having any experience.

[Datheatol]

Why risk if you arent' ready for consequences

P.S by the way where did he take those money from?

I think it was from a miscalculated leverage Robinhood displayed. Not that he owed that amount.

https://edition.cnn.com/2020/06/19/business/robinhood-suicide-alex-kearns/index.html

Although Brewster initially believed Robinhood had improperly granted Kearns vast amounts of leverage to trade with, he no longer believes that was the problem. Twitter users who saw Brewster's stream of tweets alerted him that options traders on Robinhood sometimes see a negative cash balance until the other half of their trades are executed.
In other words, Kearns did not actually owe $730,000. But he was apparently led to believe he did.

Anyway thats so messed up

[Lynfax]

People should understand what they are doing with money. I dont think that there are any problems with site. Main problem here is this young trader

Perhaps you're right and Robinhood couldn't do anything about his death anyway.
But I hope they could clear their messages or whatever, because as we've witnessed - the consequences of misunderstanding could be lethal