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"Devastated" Trader Crushed By Soaring Biotech, Starts Online Begging Campaign To Fund $106,000 Margin Call
And now, what may be the craziest story of the day.
Less than a week ago, one of the countless fly-by-night biotech pennystocks, drug developer KaloBios Pharmaceuticals said it would wind down its operations and that it had engaged restructuring firm Brenner Group to help liquidate its assets. The company said it was "highly unlikely that exploring strategic options could generate a viable transaction within the time frame, given its limited cash resources."
At that moment the stock was trading between $1-2/share, representing a market cap between $5 and $10 million, or in other words, liquidation value.
And then, last night, America's "most hated person", Martin Shkreli, whose price-gouging antics were the catalyst that unleashed the biotech rout over a month ago, decided to get involved.
As KBIO announced after the close, the company "has been informed that an investor group comprised of Martin Shkreli and associates together have acquired more than 50% of the outstanding shares of KaloBios, and that the company is in discussions with Mr. Shkreli regarding possible direction for the company to continue in operation. Mr. Shkreli is the founder and chief executive officer of Turing Pharmaceuticals, a privately held biopharmaceutical company.
"We have received communications from Mr. Shkreli informing us of his group's ownership position, and a proposal to continue the company's operations," said Ronald Martell, Executive Chairman of KaloBios. "Our board of directors is prepared to entertain any constructive proposal, which we will act upon promptly. Addressing short-term cash needs is our first priority, and we continue to be open to further dialogue," he concluded.
As a result, the stock exploded higher, and has since hit a whopping $16/share in the pre-market, an increase of over 650%.
Blatant manipulation? Perhaps - after all, this is not much different from what Oprah Winfrey did with Weight Watchers stock which jumped simply because the media diva had bought sizable stake in WTW stocks. Ultimately, it will be up to the SEC to decide.
However where this story gets abusrdly entertaining, or woefully tragic, depending on one's perspective, is that one trader, Joe Campbell, was on the wrong side of last night's massive surge. As the RutRho blog, which noticed it first explains, a "dummy" E-trader, Joe Campbell, decided to go $35,000 short KBIO "and now owes $ETFC a wonderful $106K."
But it was Campbell's decision what to do next, that is perhaps a first in the history of the market place.
The "faily new trader" decided to give online begging a try, and has launched a GoFundMe campaign seeking to "crowdfund" the $106,445 margin call.
From his just Gaunched GoFundMe website:
Hello to all you traders out there. I'm starting this page out of the recommendation of other traders in the community.
I hesitated on doing this but I literally owe Etrade $106,445.56 as of this moment what would you do if you were in my situation? I'll do whats needed and sell what I have to get them paid but if someone feels my pain and is willing to help out---who am I to say no?
If you don't want to donate I understand, at least read my story of what happened today and protect yourself from the same happening to you! This is a terrible lesson for me but if this helps just one person than I'm happy I wrote this.
I'm a fairly new trader, been trading since about March of this year. I have learned alot about the community and trading...well not enough about trading as you will soon hear.
I have a fairly small account, but its over PDT. As of this morning it was $37,000. I keep it small because I wanted to manage risk, the most I can afford to lose is what I have in the account....$37,000. When I get some profits I take them out of the account because I wouldn't want to lose more than $37k.
I was holding KBIO short overnight for what I thought was a nice $2.00 fade coming. At the close of the bell I saw the quote montage clear out and figured today there was no action after hours in the stock. So I went to my office for a long meeting. I got out of the meeting and saw a message from one of my buddys, he asked if I was ok since I was short KBIO....my heart dropped. "Shoot did I blow up my account, everything I worked for? I don't want to lose all $37,000 that would be terrible." ---It was much worse.
The stock was at $16 and my account was negative over 100k. I figured it was a mistake, Etrade would never let that happen, they must have cut the position when my account got to $0....nope. I immediately called them and they confirmed I still owned all the shares. He says that it got out of hand too fast for them to cover me, he says that all he can do right now is cover. I was devistated. I asked him to cover at $16 and he waited trying to find me a good exit. I told him to do it asap and the fill was around $18.50 avg.
At the moment not only is my $37k gone, but I now owe ETrade the negative balance of over $106k. I always knew I could blow up an account and I was financially able to "afford" to lose the $37k. Never in my wildest dreams did I imagine that Etrade would NOT have some sort of stop or circuit breaker in place that would automatically cut a position if the account went to $0.....how could they ever let it get to -$144k loss on a account that small! Also, why did I have to call them to find out what was going on, why did they not alert me or call me when it went neg???
I'm never one to ask for a handout and honestly I'm kinda not sure if I should post this but here we go. I'm sure it will cause lots of controversy on whether or not I deserve even a $1 donation but it doesn't hurt to ask. Anything you traders can do to help me get a little out of this hole would be a blessing for me. Anything donated will go 100% to simply paying Etrade some of this $106,445.56.
My plan moving forward is to liquidate mine and wife's 401k's and try work out a payment plan with Etrade. I'm also going to ask them to help out in some way...thats a longshot. I will pay them and be back trading....only with set stops this time. What an expensive lesson that was.
I hope my story helps someone else from the same.
Here are screenshots of the damage.
An expensive lesson indeed. The Rut blog is less than friendly in its assessment:
The dummy puts in $35K on a short and now owes $ETFC a wonderful $106K.
Let's give this American Youth a round of applause for being smart enough to open a website trading account and dumb enough to buy KBIO. This stupid shit who can't handle responsibility needs to be offered advice, not get a bailout from us. Stupid people.
So please, email Joe Campbell and tell him to take responsibility. The "fairly new trader" Who started in March. You think he'd be donating that cash to all the other people who might now be starting GoFundMe pages to subsidize their horrible trading choices?....Ackman might take note.
We on the other hand have some sympathy: as we have been warning for years, the market is not only broken (thanks to HFTs), and manipulated (thanks to central banks), but is an all-out unregulated wild west, as the SEC is seemingly hell bent on cracking down on Indian and Russian "spoofers" when the real manipulators walk around not only free but with millions.
That said, we do hope that Joe's rookie mistake is a wake up call for anyone who hopes to get rich quick on whatever levered "lottery ticket" du jour is, be it biotechs, retail stocks, commodities, or whatever else the HFTs are momentuming at any one millisecond.
As for Joe, good luck: as of this moment he has raised $141.
He only has $106,304 more to go.
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I crowdfunded him one dollar just for the entertainment value ... hahaha
Hey, at least when I lost a ton of "money" from 2011 on, I still have many shiny stacks to show for it.
Not that it makes me that happy.
There should be a better word for "losing" on the wall street casino. Losing money sounds like a mistake, like the money wafted into thin air, it sounds childlike...a child loses money. In reality someone beat you and took your money.
Ha ha ha ha you play, you pay.
Exactly what the psychopaths say and think when they look upon ordinary people. Welcome to the club! No worries, you only demonstrate the problem with the human heart; it is hard as concrete.
How much are you sending?
From your tone, I would guess at least the whole amount he owes.
Everyone signs a paper with margin accounts stating YOU are obligated to pay. He should've read the fine print, I guess.
Another entitled generation retard getting blown up....but I bet he would've taken the gains if the trade was the other way.
And if he had gains, how much of it would he have given to charity.
He would have been sitting aroung the bar bragging about how he was fucking Leo DiCaprio in Wolf of Wall Street.
Fuck him.
Agree 100%
Sometimes you need to pay your own stupid tax...
The only way to win now at this stage of the "market" is to stay the fuck out...Greed will get you every time.
- annnnd it's gone.
What an idiot, probably frequents Investors Hub for information.... to da moon bitchez!!
Kid thought his next move would be buying a Lambo tomorrow....awwww
Fools and their (future) money are soon parted.
A fool and his money are damned lucky to get together in the first place.
He should have ducked ... instead he weaved.
So he put all his money on black and lost it.... At least in a casino you can't lose more than you started out with.
...and casino's are a helluva lot more honest.
and you get free booze and maybe a free lady if you're really lucky
... and crabs if you're not.
crab meat is delicious.
Most casinos...
https://www.techdirt.com/articles/20100607/0240579712.shtml
That move up in the stock is pure bullshit. Martin Shkreli should be brought out of his comfy pad in shackles.
Well Joe, you're fucked.
My advice, go figure out where Shkreli is and kill him in the most grotesque way possible. That is what I would do. You'd also have public opinion on your side. Start the guillotine movement. Someone has to.
You might get a pretty good book deal.
I'm convinced when a broker sees a huge short and they can make a quick buck, the stock moves up.
Etrade is out the money.... it sounds like a margin acct. Up to them to close the position when it goes south. Sure they can ask but that is all
they can sue
They should sue shrek or w/e his name is.
Usually they give you 3 days to wire in more cash
"or else"
Hello ZH, I hesitate to do this, but at this point in my life I am short of my goal to be a multimillionaire........
Perhaps you could suck Sheen's infested penius for the cash? Take a few politicals and bankers with you , will ya .
Schadenfreude aside---if he really doesn't have it, and doesn't have anything else he can sell or mortgage to pay this shit off, can't he just declare bankruptcy?
Seriously.
He must have been short 10,000 shares to lose that much on this move. Schadenfreude aside, if he really doesn't have it, WTF is eTrade letting him go short 10,000 shares of anything with 37k in his account?
This does not add up.
Not even sure this is legit. What if I saw a stock move, and put out a sob story.
I would be really surprised if ETrade is in the biz to extend so much margin to someone
I didn't even think you could get margin at etrade without at least 100k and an approved high risk account.
My first thought was, "WTF is he doing shorting ANY stock under $5??? Much less $2."
Shorting is dangerous enough (read: suicide) in today's manipulated markets, but losing your ass (and more) because of shorting a thinly-traded equity under $5 is simply economic Darwinism at work.
he would have had better odds in Vegas - and also would not have to wack off to ePorn
Not to mention the risk management, eg, not risking more than 2% of total acct equity on any single
position.
I can't believe he didn't use loss limits...I mean wtf?????
I don't trade at all, never have, and even I know that you set limits on what you're willing to lose.
The other side of this is he 'had' $37k (or so he said) to play with. I can think of a lot of Americans who never had $37k and never will, and they're not asking for a handout to fix a bet gone bad.
As commishbob said, what kind of fool shorts a $2 stock? Was he expecting it to go negative?
If this is in fact real (questionable to begin with) then this dweeb needs to keep his personal biz to himself and work out a deal to pay it off. The fact that you gambled like this with the $37k you'd saved is beyond me.
Joe: "Hey, I have 37k in my account. Can I go short 10,000 shares of a penny stock?"
eTrade: "Sure"
*Laugh Track, Applause*
call 1-800-JYE-LLEN
I have some sympathy, but the real issue is that he doesn't take full responsibility for his mistake; common sin among humans.
What is the greater worse sin are those people who take pleasure in the real suffering this person has (regardless of fault); I doubt anyone has not suffered and I doubt anyone felt real good when others took pleasure in their suffering. In fact, to take pleasure in someones suffering is psychopathic, the proof can be see in DC and similar places.
As you will see among the comments here; there are a lot of psychopathic tendencies; it is human nature and resides in all...only manifested by degrees based on power, authority, circumstance and internal constraints.
Psychopathic tendencies ??? And how many decades the elites & politicians have been taking pleasure in our suffering ....
Stop spitting out garbage.
Then again, it might be a sign of psychopathy to claim sympathy for severely stupid greedy fucks who then beg from strangers to escape the consequences.
But that ego rush of false moral superiority is addictive as cocaine to the regular user, isn't it?
He seems like a standard bank. Bet on highly questionable spec trades and beg for a bailout when they go bad. Then get back into trading, promising "I'll be more prudent next time".
Go fund yourself.
Market is "free" to be manipulated to the favor of the big players.
Small investors are just for the fucking. NOW is it clear?
He made a mistake. If his wife is smart she'll cut her losses and walk asap.
No Nookie for this Rookie....
It's not new. I've seen it before. Change the name "Joe Campbell" to "Jamie Dimon," and then change "gofundme" to "Hank Paulson." Everything else is the same, including asking others to keep you afloat in a business where you're obviously a menace.
You forgot to change "tribe" to goyim.
Repent or find a high building like the other banksters.
What about just not paying the margin call?
A hearty, I’m sorry but Fuq-off is fitting.
What collateral was posted to back the margin?
Exactly.
Change your phone number.
What are they gonna do? Send that baby to rough you up?
Dear Joe,
Your 401(k)s are protected from creditors. Please consult with a bankruptcy attorney.
But it's a lock!
- Kramer
tell him . . . "gofuckyourself. dotcom"
If his bet ended up in the money, he wouldn't give it away to strangers. Fuck him.
TOUGH TITTY say I.
Peaches says: https://www.youtube.com/watch?v=GmFp0I8AZqw
Fuck the Pain Away!
What a fucking idiot. His missive is embarassing, on so many levels. Take your medicine, moron.
Asking for some sympathy? Get the fuck out of hear.
The reason why I don't play stock positions, is because I don't know what's going to happen.
Fucking make some cardboard signs and sit outside, see if anyone throws any change at you, like all the other self-respecting people who need a buck for food. Sell your home to cover your losses? WTF kind of shameless idiot claims that people owe them sympathy for foolish behaviour.
Some lessons are expensive. He can pay for it himself if he can just throw $37K away. He said in this article that he was going to go back to trading again so he has not learned anything.
On the positive note, he gets the tax loss taken over the next 33 years assuming no offsetting cap gains in the future.
>he gets the tax loss taken over the next 33 years... <- No, not really...
It's $3K/yr, last time I checked. Therefore, $37K/3K = 13 years with the final year being a 1K tax loss.
Standard Disclaimer: Because....math.
quit trading
lol that's what I did. Back in Feb. of 2013 I shorted FB cause I thought (and still think) it's doomed to fail, when it started going up I closed out all my positions on Scottrade and started buying silver. Never looked back. Maybe this guy will find zero hedge...
better chance with Fandango.
If he would have placed his bets and won, he'd have been all over the place BRAGGING ABOUT HOW SMART HE WAS, and calling everybody else a bunch of LOOSERS.
The only place he will find sympathy is in the
dictionary between shit and syphilis.
A trillion or more taxpayers dollars bailing out banks that made bad decisions around the world with barely a whimper and we're demonizing this person?
wow.... maybe a little hypocritical?
Should have Held the postion, Borrowed the money, paid etrade, wait for the deal to fall thru or for stock to resettle lower, close position, then get really drunk and beg wife you'll never be that stupid to carry a naked short again.
So you got burned playing with fire, and now you want me to fund your medical bill. GFY and grow a pair. Also, a wise person would short the shit out of this company now that the most hated man in biotech bought it. Just wait for the investigations to commence.
hang in there dude. pray.
Stop Whining!
I'm guessing he has another account in a different name that was long the same stock and made $300,000.
"I immediately called them and they confirmed I still owned all the shares"...
He gets short and think he owns the shares, pointing to his real problem
To state the obvious: As long as the system of fraud is supported by traders and people with their retirement money it will feed on iteself in an every increasing Ponzi scheme.
Once people opt out (which most likely will never happen), there will be nothing left for the system to feed on. They will then try to re-set it to see if that works and if not, then it will die.
Unfortunately people have been defrauded into believing the system is fair and logical. They are half right. The system is absolutely logical, but completely unfair. It is logical in that those running the sscam are able to plan their moves based upon what others are doing and thereby steal money from the majority. Only those who are part of the system benefit from the system.
Price is controlled. There is no free market and as much as we would like to believe there is one ... this is one of those long-ingrained paradigms that we need to simply toss away and go somewhere else.
What no "Safe Spaces" on Wall Street. We need to fix this! This type of cruel behavior will not be tolerated, we the the "Concerned Traders who just started trading 8 months ago" demand the immediate resignation of anybody, replacing them with the E-Trade baby who lost it all and oh yea we want all our money back too including any of us who has not as yet become a trader.
At the horse races, they're called plungers or bridge jumpers. When they bet $37,000 on a 1/9 shot to show and the horse finishes "out of the money"...."well honey, there was this sure thing somebody told me about..."
You guys should be a little more sympathetic. He might be a loyal ZH reader. These are all posted since the beginning of October...
Biotech Bubble Burst? Kura Crashes 56% From Opening Highs, Back Below IPO Price
Momo Massacre: Biotechs Are Crashing, Turn Red For 2015
Stocks Slammed Into Red For Week As Biotechs Break Key Support
The "Secret" Of Successful Biotech Investing Revealed: All You Need To Know In One Chart
Stocks Turmoil As "Easing" Exuberance & "Hope" Hype Trumped By Biotech Bloodbath
Battered Biotechs Trigger First "Death Cross" In 4 Years
More Pain For Biotechs Ahead: Valeant's "Astronomical" Price Increases Take Center Stage; Pfizer Gets Dragged In
What part of "This market is manipulated." don't you understand?
How many stories about a short squeeze have you seen?
Lighten up, Djmom. It was sarc.
I'd like to meet the rocket scientist at e trade that gave Level 4 approval to this trader with less than six months experience
He used to write NINJA mortgages for Countrywide.
> I would Like to Help You
> Go Fuck Yourself you Wall Street Prick
JUMP ! YOU MOTHERPHUCKER Do the world a favor
The internet is a blessing for shut-ins like you.
I played with fire once. Burnt the shit out of myself.
you should never use fire as a laxative.
Just think......All he had to do was BTFD! Geez!!
This dumbass needs to liquidate. Chapter 7 Bankruptcy sounds like a good move.
I think that's called taking it in the shorts. On the bright side JPM have probably already called him to offer him a job as a lobbyist.
Awww, the poor little yuppie puppy didn't get to be first. Ima gonna tell mama Goldman - LOL......................................
Maybe he should buy some Japanese govt. bonds-then he can have some geishas to "comfort" him LOL....................................
Well Joe, it doesn't look like you'll be wearing big boy pants anytime soon!
I forwarded this to a "dumb money" friend that bounces around between Apple, NetFlix, Amazon, etc. He replied, "Sad story, I sent him $25"
I laughed.
He asked, "What am I supposed to do, just point at him and laugh?"
I said, "Yes."
The grinch of wall street stole your Christmas lololololololol
He who sells what isn't his'n, Must buy it back or go to prison. -- Daniel Drew
Go to prison and screw em:) You get food and shelter in prison also no need to work. What else you need.
you get a bit moar than that, too.
No trailing stop loss on a short position worth 100% of his invested capital which was in a penny stock?
Uh. Is all I have to say.
Call the fed. They got your put.
Call the fed. They got your put.
Joe Campbell ...No soup for you !
As a WNYC reporter once shouted to a guy on a ledge back in the 60's, "jump dammit, we're short on film!"
Anybody see what drove KBIO higher? The weasel hedge funder who jacked up Daraprim to $750 started buying it up shares earlier in the week. He's hurting the sick, and now an idiot who doesn't know how to trade.
Shares of KaloBios soared more than 800 percent after hours Wednesday, to more than $19, after Mr. Shkreli’s stock purchases were reported in a filing with the Securities and Exchange Commission. The shares had closed at $2.07 in regular trading.
http://www.nytimes.com/2015/11/19/business/group-led-by-turing-chief-acq...
You're not swimming with sharks...
You're chum.
Didn't this guy have a mentor or even read *one single trading book*? Money management 101 and/or common sense dictate that you NEVER put 100% of your account at risk. Also, no stops? There can be a pretty steep and painful learning curve in trading but seriously, if this story is true and really happened, dude needs to man-up and get over it..
I was thinking the same. My novice learning about trading from the Cashflow game even taught me to use stops 15 years ago. I still remember that. This guy is a complete moron. He would have more luck in Vegas
Is his wife hot? Maybe he should put her to work flat on her back while he has to watch. Or maybe he can service some tricks too.
This guy would have had an easier time raising the money if he wrote about trying to help out his cousin who is a prince in Nigeria that just needs some account numbers in order to transfer some money.
Easy money is never easy. Margin account on penny stocks is absurd.
And Shkreli should be in jail.
I forgot to add, after reading the article yesterday about how banks reject losing trades by declaring a technical glitch, I don't know how anyone is in this "market".
Mixed feelings on this one.
He is another fellow human being that got screwed (either by his own greedy fantasies or by shiny e-trade ads). Deserves sympathy points on that. On the other hand, if he had won the trade, he would be strutting around his office buddies showing how he screwed a small company that was already in the shithole (shorting here being kinda like putting the boot to the neck of a dying turkey). So, his sympathy points are now on a margin call...
Solution to this "problem"?
E-Trade (or that jew Martin Shekel in the Asshole) fucked with him. So, this is what I would do:
1. Call E-Trade again and ask the friendly account manager: "Mister, do I look like a hooker to you?" - "Ehm, no, what do you mean?" - "GOOD, because I thought for a minute there that you were out to fuck with me."
2. File for Bankruptcy (like the Big Boys) > Never look back and STOP FOR FUCKS SAKE TRADING THIS SHIT!
Perfecthedge: "He is another fellow human being that got screwed..."
Nope. He screwed himself. It's a casino, he gambled, he lost.
Fucking take it like a man and BK.
"I am going to liquidate my wife's 401K plan..."
FUCKING PUSSY!
LOL Ever hear of a stop loss? It never ceases to amaze me how people think they know more than the market when it is screaming at them that they are wrong. Every trader from the boy wonders at these algo firms to the retail guy, they all suffer catastrophic losses. Exactly what sort of risk model were they using. The answer is NONE. Good luck finding someone to bail you out. Sorry my friend you are not TBTF or I would suggest calling up Janet Yellen to see if she has a couple of hundred thousand lying around. I am sure she does but you have to be a much bigger f-up than you to get it.
KBIO closed yesterday at 2.07 and opened today at 14. I don't think havings stocks in place would have helped him in this case.
Let's give the kid his $106k and make him make his payments to us! Then...let's turn him into a project...learn him up fine and good like us...teach him how to invest!
After all, we're all a bunch of trading geniuses here on ZH, right?!
Don't tell me y'all are scared?!
btw...anyone else find it odd that he still has a wife to help out with his debts?
When you owe Etrade $500.00 you have a problem.
When you owe Etrade $106,455.56 they have a problem.
indeed, they do. The reality is the guy will never come up with the $$ and heads will roll @ Etrade for allowing this to happen. As a company, it shows gross ineptitude not to cut that position and to just let it run. There is an expression in law known as mitigating damages. Whether or not Etrade had a duty to mitigate s up for the court to decide, but for them to say there was nothing they could do, when we have arbitragers churning millions of shares a second in HFT computer systems, Etrade, the hen sitting on the egg, so to speak, surely had the same access as HFT traders that move their trades *through* Etrades infrastructure. And, furthermore, from a legal point of view, it is foreseeable this type of event could occur, and the burden and duty to mitigate would naturally fall on Etrade.
I have been trading since 1992, and I remember my first disaster. I was long Sterling @160 something, maybe 171, I forgot. The market moved up to like 177 or something, and I was in the money by $4k. This was a forex shop back in the day (Sep 1992). My acct was at $8k to start the session, now at $12k, but I just kept the position open. Imagine! 50% increase in the acct and I left the money on the table. Now it is 1 AM, everybody is at the office, coming in to trade. We were all rookies.
Anyway, I was 'encouraged' by the guy who 'trained' me, a Richard Zee, to keep the position open. This was like the 3rd week of my trading career. So everybody else comes in @ 1AM and they all start buying Sterling at the highs, as prices were just sitting there, for a couple hours. Then the market started breakng down - fast. Soros started selling (again), and I get this message from the trading desk I was automatically taken out of my position. My closing balance was $6,472. A ~$6k swing in equity in one night.
I have been through some pretty epic draw down episodes since then, but I can tell you, nothing was more painful than that.
The point is, every trading company has built in mechanisms to account for these contingencies. That is a common practice. Somewhere in the fine print with Etrade it *also* states Etrade will close positions under these sorts of conditions (but of course accept no liability - which is at issue here now in this case before the court). Considering the substantial advance in technology, and the common practice, it can reasonably be argue Etrade had a duty to mitigate, which they clearly failed to do here. In fact, Etrade did not even try. According to the facts, they lamely show up hours later *after* the guy places a call to *alert Etrade about the problem* and *then* they finally cover the trade.
The only problem is, what are the damages, what will the cost of the suit be and so on. Basically, the guy will have to wait for Etrade to sue to recover, and defend on the grounds as noted, maybe it might cost him $10k. In the event he loses, he can then throw the judgment into BK and dump it. Or, better yet, he can have his attorney negotiate a settlement with Etrade, using the above to 'persuade' them, and maybe pay $20k, or some amount the court would reasonably conclude that if Etrade had made an attempt to mitigate, some slippage was reasonably likely to occur. But $106k over $37 is a joke.
They can't defend against a stock moving against you 800% between sessions.
It literally cannot be done.
well hell now he can go long on E-FUCKED
You gold shorters are all warned.
Nah. The Fed Govt wont let Gold or Silver to get out of control. Need to suppress hard money to keep the Fiat game going. ISIS needs its weapons...how else will they get funded?
This is why we need the Obama myRa plan implimented immediately. Only the Federal Govt can prevent this. Confiscate all investment accounts and give everyone a safe and secure 2% ROI ObamaBond
It's designed for all ages.
ObamaAllBondAge
Wait, isn't he now $100k richer?
He should do a youtube video so people can see his sorry ass and maybe drop a few more bucks...
There's a panhandler in NYC who makes $200/hr.
Former Lehman banker?
Former Lehman banker?
First of all who shorts a $2 stock?
You can buy the entire company for a cocktail napkin THAT was his mistake.
Anyone dumb enough to play with a 2$ short is dumb enough to hold it overnight and make it worse. He was asking for the casino to take his money.
a little shadenfraude here from traders who wouldn't be traders unless they blew up a time or 2 to learn important lessons. poor fucker. he's lucky he didn't have a heart attack.
does anyone remember the video of the forex trder watching himself get destroyed?
He should take out a zero percent loan.
He just illustrated why shorting a stock is riskier than just buying a stock.
It is kinda funny in a public leason kinda way, maybe E Trade should cover him and do a video of him blowing up to properly warn people what can happen when you are short a stock in that you can lose MORE than you have in your account.
Somebody already did one like that. I lost the link but I remember one where the smart-mouthed baby was showing off, buying stock, options, and other stuff, and then pukes as the market dives and he cannot get out... Funny as hell. I wish I could find the link.
I feel for this guy, once he gets his money back what he really needs is an experienced trader to help him out on the path to earning riches.
So is anyone else prepared to chip in with me to buy him a subscription for the Gartman letter?
lol, when I was in the stockmarket before and during the tech bubble, I was no trader and knew enough to put a stop in.
You put in magical stops that bought in the premarket if a stock gapped up 800%?
good ol' shorting stocks. It's for those people who want to bet against a company but don't know how to buy put options.
I think he should for the first NIRP loan then the bank can slowly pay off his loan for him or he could wait for helicopter money to come along. Maybe he will be one of the lucky ones to have money placed in his account for free! #helicoptermoneyfortraderswefucked
He who sells what isn't his'n,
Must buy it back or go to prison.
Isn't there an Ashley Madison type site for the 0.001% who get their thrills out of molesting total muppets for a nice fat fee? Maybe Charlie Munger would pay $100K for a dungeon session with Mr. Campbell, who knows...
Seems to be indicating a market top.
Well he got a lot of free marketing and upped his target to 5K because of the exposure. Nice one!
It has already been said, he needs to contact a BK lawyer. He should not at all take any money from his wife's 401k. Well, she should not allow it.
I asked him to cover at $16 and he waited trying to find me a good exit. I told him to do it asap and the fill was around $18.50 avg.
Etrade covers it for him for "a good exit" 25.67% above today's high.. 15.625% above 52wk high.. 66% above current price of 11.14. As is tradition.
Etrade did what they were told to do. It's a dicey situation and you can tell by the wording the broker was trying to help him and then the client said "Do it!"
And the broker has no choice.
His "good exit" was $18.50?
The highest print on regular session hours was 14.72, and it's presently at 11.24.
So the "good exit" his broker got him pre-market (I assume) was about 65% higher than it's trading right this second.
And if he had made $106K on the trade... he and his wife would be drinking Dom Perignon on the beach in Bahamas and doubling down next week. Consequences have an important sobering way of driving lessons home in a way that can last a lifetime.
Would this be a good time to ask if he was planning to share his profits with us?