as well as graphite miner Westwater Resources Inc., which produces a mineral for batteries used in electric vehicles. They tried to game the topsy-turvy pandemic economy, buying an oil exchange-traded fund with the ticker GUSH, a bet on rising gas consumption. They dabbled in such volatile stocks as Canadian cannabis firmMr. Ela used his Robinhood-issued debit card to tap money from his brokerage account for a vacation to Mexico with his girlfriend. Mr.
The friends bought GameStop that month, when it was below $80 a share. They traded in and out of the stock as it began to climb to improbably high levels. The stock of GameStop and other buzzy companies lifted the trading accounts of Messrs. Norkin and Garcia to personal highs. Mr. Garcia texted a link to a Reddit post describing how to file a complaint with the Securities and Exchange Commission. “Hold the line boys!!!…The whole world is starting to step in and buy GME.” GameStop shares tumbled to below $100 within a few days.
Messrs. Norkin and Garcia also took losses on CCIV and other electric-vehicle stocks over the next two weeks. Facing their own margin calls, they realized they hadn’t fully understood the debt they took on. The app prominently features a metric called “buying power” that includes margin. But they had a hard time finding any similar disclosure of what they might owe if their bets on stocks soured and triggered margin calls.
3 guys talked about finance, never once imagined something that inflated 9,000% could crash.
Robinhood is not a good platform. Schwab and fidelity are far superior, even for a beginner investor
I promise that you'll be my one my only everything
I don’t want to live in a world where 3 random dudes can’t make a quick fortune off of the stock market.
I can only imagine what could happen if the market has a drop that lasts longer than a week or 2......but that will never happen.
Well, now people really know how the market works. It’s dictated by emotion and psychology, hence, why the market can stay irrational. When the market is based only on “pros” making picks, it will sway more towards fundamentals. When the market is filledwith newbies..momentum
I’m sure AskRobinhood and vladtenev will work out a way to rob them of any money they make
Then one found his father died and flew to Cincinnati for the reading of the will ... didn’t get the money but got a car ...
3rd_Generation_ good read sis. I know you’re new to investing
Usa sheeple population exploded
Where can you go for fun in your city?
Never invest with money you need, stock market is the biggest casino in the world. Can make you or can break you. Invest smart people. Do your DD before investing on any company.
CovidIndia मोकळ्या भूखंडावर शासनाचा महसूल बुडवून तीन मजली अवैध निर्माण कोणाच्या संरक्षणात पुर्ण CMOMaharashtra AjitPawarSpeaks hmo_maharashtra DGPMaharashtra CollectorMsd CPMumbaiPolice vishwasnp mybmc KishoriPednekar mybmcWardL Dev_Fadnavis
This is why you don’t use margin. Only play with what you can actually lose with no harm to your financial situation!
Dang $CCIV got em :/
nguoi yeu yeu dai han
Two main takeaways are to stay away from margins and only invest what you can live without.
I don't play around with margins.
This story was incredibly underwhelming. 3 bozos bought GME along with millions. They thought they'd get rich and they didn't. The end.
You win some, you lose some. Know when to hold them, know when to fold them.
They were NOT “idled by the pandemic”!! They were put out of work by the fascist/useless lockdowns even your paper stupidly supported in a panic, and still today won’t fully admit your tragic error.
I remember this time in the market a big SPAC craze. Didn't feel like you could lose back then. Way way different landscape now.
So what?
Everyone should know that time in the market beats timing the market. I've gained ~80-100% in a few months to a year by simply holding while working full-time and other side-gigs. So yes, obviously saved a bunch on time, capital gain tax, calls, and etc.
Don’t...margin ....trade
TLDR: marvin trading bad. Thanks for the tip
When you play stupid games... well... you know.
MrStockBot Show me $GME short sale volume
Could never do it SMH.
All business investments are “gambling” Even if you have a contract yours still assuming risk. Even if you’re employed you could get fired and then you hold zero equity. Life is a gamble
So what you're saying is... Three friends made no money on Robinhood.
A simple stop loss set at the right price point could have prevented this🤯
This story sounds like FUD to me.
Morons.. even the most seasoned risk takers on Wall Street know to not F around with Margin calls unless you're willing to lose it all.. just ask Bill Hwang WallStreet
Nice Touch scare tactics ALWAYS have outcomes.
Fuck off with the paywall click bait. Give me the bullet points. Why do you think I’m even on Twitter?
Are we supposed to feel sorry for this wreck less behavior? They escaped better then they should have. Hope a lesson was learned.
This is what you get. Retail investors who have no clue what there doing other than playing at the casino. For me- investing a is marathon, not a sprint. Mutual funds that grow at the pace of a snail is the key to wealth!
Shoulda bought dogecoin 🤷🏾♂️
They wear shoes in the house. Play video games all day. Are not good at investing. Like to complain that, “It’s not my fault.”
The biggest L I see here is going $85k in debt to become a school photographer
The majority of us are using our own money and buying the REAL stocks; not borrowing them. I know you think you’re painting all of us as ignorant amateurs that will lose everything so we sell before the squeeze, but it’s not gonna work. We’re gonna go to the moon 🙌🏾💎🙌🏾💎🙌🏾
Good report wsj and I feel for the guys. Robinhood screwed them by freezing. Hard to believe they didn’t know they would owe the exact same multiplier with margin trading 🤦🏻♂️
Who cares lol
dont ever ever ever use margin - ever you dont need to short to make money cut your losses on a losing trade fast sell your winners - let it ride is for craps and vegas those are my rules - built on my own losses
I wish them all the best
You got to know when hold em Know when to fold em Know when to walk away And know when to run
I started actively investing at start of pandemic. Am up 140% for the year. But I am a long-term hodler mostly. Find high conviction investments, do fundamental research, rarely day trade, diversify, never YOLO into a position, and never use margin. I am a rook, but not an idiot.
i read the whole thing, it seems like greed got to this trio, greed + lack of sufficient knowledge was their downfall, sad story
Welcome to wall st, mkt givith mkt takith
lisa_berden
Bulls can make money, bears can make money - but pigs go to slaughter. My father taught me this when I first started trading at 18 - one of the best investment lessons. Thank you, Dad.
How bad did Robinhood fuck these guys over?
I'm confused, why did they never take profits. Anything, anything up that big, cashthefuckout
They will make money if they hold William Ackmans spac $PSTH that’s for sure.
SavedOneClick
In crypto world, the irs want you to pay taxes on unrealized gains. criminal
Why is this even a story? Three irresponsible adults that threw away money because they margin traded without knowing what it was. gtfoh
Who frickin’ cares?
That’s there own fault . Don’t be a dumb ass and not take profits !
they made money and then got rekt.. but why is this article paid wsj? what is so revealing about this study that only the privileged paid members get to see?
And they didn’t HODL $TSLA
These guys were not long-term investors
Wait all of this over 20K Should have gone into crypto
I started February2020 and by Feb2021 I turned my 30k investment into 114k and cashed out immediately. You gotta learn to stop when you're ahead, greed will be your downfall.
Mr. Ela- how the hell u $80k in college debt with a business degree but are a Hs photographer! C’mon man gotta make some better moves!
Made 1.1m, still have it. Will not be these guys.
Are you HODLing your dogecoin? 🚀
You wrong then with these pictures... And did not increase sympathy if that was what you were trying to do.
All 3 dudes are clowns as well as the author for trying to blame Robinhood for their stupid mistakes
Were these pictures meant to look ridiculous? Not asking for a friend. I'm sorry that they lost, however let's stop pretending that we should issue pity to everybody God it feels awful to say that.
Can anyone actually explain or give good reference to stocks and trading apps? Links?
KoppKnows BrettGraffy
trying to promote that only wall streeters should trade lmao
Another dumb story of someone not reading the fine print. If you believe someone is loaning you money out of the kindness of their heart then you probably shouldn’t be getting out of bed let alone day trading.
Trying to make profits relatable to every day person. Paid fluff piece. Truth is they halted trading when it mattered and stopped you from realize gains.
Losers
Now do Archegos.
I hope they learned their lesson. Just like with everything else ppl should do some research and learn before betting on speculative stocks.
One of the major takeaways from this is that Robinhood sucks.
It's human nature for people to chase the goldman sachs style gains instead of taking a Warren Buffet approach.
Robinhood operates like a casino 🎰 & investors need to do more research than subreddits ...
Tesla, Gamestop, Churchill Capitol... yeah all saw those getting overly hyped all over Reddit too. It even says they bought in GME at $80... Never exactly explained how they fucked up but sounds like they blew it all on GME calls? Had to try pretty hard to blow their gains
I turned 1500 into 100k in 6 months. Want to do a story on me?
No shit, people with inflated egos and no knowledge of stocks losing it all? Let me play the world's smallest violin for men who are just the right combination of ignorant and arrogant. Boohoo
Behind Robinhood is Wall St. This is how Wall St takes money from millions of Joe-6-packs This is sicking
gme is still a good buy!
Amateurs learning from an amateur mistake.....
This isn’t on Robinhood. This is on 3 dudes gambling with money they didn’t have & weren’t prepared to lose.
So they traded for a year lost money and gave up. Who cares they didn’t have DiamondHands to deal with all the ebbs and flow of crypto or stocks. Assuming the article title says it all 🤷♂️
This is the WallStreetBets ways. Let’s see that loss porn baby!!
You should partner with brave so I can easily get past your paywall by paying a small fee of AttentionToken BrendanEich
Amateurs. Their greed sunk them.
itsALLrisky it’s all risky isn’t it 🤔
everyone here that wants to make money buy $elon
I don’t invest, is not understanding what you’re getting into a good strategy?
Invest very little Bc I need all my $$$ I don’t have much exp either. But I’m doing ok. My balance goes up bout $10 a day & im ok with that
Right now RobinhoodApp is not allowing the sale of btc this is a total rig
TLDR: a dummy convinced two other dummies to use margin on a joke investing app and all 3 got fucked.
FUD .........
A reminder to trim some profits at peaks. Buy low, sell high
Well I feel significantly worse about my PSTH investment lol
Oh my gosh. This is ridiculous! Greed and lack of knowledge is what got these guys. Not Robinhood.
GREED
Typical N00b 'traders'. They just don't know when to stop. It's like Vegas. You go on a hot streak at the black jack table and the longer you stay, you will eventually lose it all. The house wins!
Odd average smart people making money off robinhood. Now the campaign to crush the app with negative stories starts. Odd...
Lol, there high school photographers
Don't trade on margin if you cannot afford it.
CryptoWhale this is how most BTC bulls will feel in the coming months
ahh the days when PE ratios meant something. Where evaluations were based on real stuff and not some made up shit.
What if they’d been allowed to buy and sell their property freely without robinhood stopping trading? Wonder where they would have ended up.
Lot of new first time investors YOLO’ing into stonks. WSJ just helping spread some FUD to keep as many new retail investors out. As for myself, I’m buying and hodling AMC tomAlpha Centuri
Dummies should have invested in MVIS.
GME - we own the entire float. $GME is not done. :)
Bulls make money, bears make money and pigs get slaughtered.
Investing while having debt is scary. They jumped the gun way too fast
What a weird story to write... 'Ya see what happens when you little people try to GeT RiCh?! Now get back to work!'
First Rule: Never invest money you're not willing to lose. Second Rule: Do your own Due Diligence. Third: Know when to stop.
Friends don't let Friends use Robinhood.
Lmao this is such a weird story....
Not paying to read this crap.
Yeah, I lost a little money on that Gamestop AMC crap. Was way too stressful. Constantly looking at the stock ticker. Closed my RH account. I'll leave that shit to the people that know what they're doing.
Education is expensive....
Good fatties don't deserve money
Rooks got caught up in euphoria
now y’all know what happened in the 1920s
I was waiting for the point in the article where they made a 'fortune'.
You got to know when to hold em Know when to fold em Know when to walk away and when to run You never count your money while you're sitting at the table They'll be time enough for counting when the deal is done....
They’re all in on $doge now, I’m sure they’ll make it.
You are never rich in stocks, just potentially rich. It ain’t real money until you cash out
Bwaha! I thought you were going to talk about children who stole mommy's phone to trade. Nope. Bearded adults.
Got rekt playing with the margins.
realMeetKevin
Passive investing Trading
T he ey set on their investments ( stocks) too long They should have moved those funds into Fixed indexed security’s ! It goes up with the market gains but never loses or goes down past what you earned!! Thinking yet?
UNLV - Don’t you be greedy
The article should be titled “Lessons Learned From Trading On Margin”
too fat ; too much hoarding
Not sure it’s a bad thing that they lost their jobs as school photographers, they look like people that you wouldn’t want around your kids...
Can someone explain how much they made so we dont have to subscribe to wsj
I have zero sympathy for grown adults who don’t do their research when it comes to buying stocks or trading on margin. Shit I have my license, work in finance and I don’t even play around with margins.
Fucking paywall assholes.
Lol so many retail traders lost huge amounts. A handful pulled monster returns but please stop glorifying people who know nothing about investing. It is just sad. You don't build wealth by betting 85% of your account on one trade.
Robinhood meaning rob from the rich give you the poor....did they do that ? If no this is fake news !!
*Narrator voice* 'And in fact, the GameStop stonk did not take them all to the moon.'
They're all so plump. Daaamn.
Reminds me of the 1999-2000 dot com bubble-to-bust (albeit much smaller these days).
Take gains and let profit ride? What does the great Boomer jimcramer always say? 'Pigs get slaughtered'...or were they bulls that were castrated?
Did not follow the trading rules take profits
I AM JESUS CHRIST! YOU WILL REJECT ME I KNOW, IT IS WRITTEN THAT. I WANT THE POOR TO BE TREATED EQUAL KINGS AND I WANT THE ENTIRE AMAZONIA AND THE REFORESTED PANTANAL. YOU WILL PLANT ALL THE DESERT IN THE WORLD ALSO.I ALSO BRING THE FIRE 🔥
🙏👀👇🇺🇸