Current Events > 20 y/o Kid Commits SUICIDE after seeing -730,000 in his BANK from STOCK TRADING!

(+) Yeah! (+)

Dailymail has learned that 20 y/o Alexander E. Kearns a College Student at the University of Nebraska had horrifically committed suicide after seeing he had a NEGATIVE cash balance of 730,165 in his Robinhood stock trading app!!

He died last Friday after he JUMPED in front of an oncoming FREIGHT TRAIN near his town of Naperville, Illinois.

He was home during the break because of covid-19 and left a heartbreaking suicide note that was published online by his cousin in law, Bill Brewster

He wrote "How was a 20 y/o with no income able to get assigned almost a million dollar's worth of leverage? A painful lesson. F*** Robinhood"

Although the details of his trades were not made public, there is reason to believe that the negative cash balance that was merely a temporary glitch and he was not in fact over 730,000 in debt as believed

From the note, he appeared to have been using what's known a a "bull put spread" a strategy that limits risk for a trader by both buying and selling put options at different strike prices.

It's likely that negative balance appeared only temporarily as one half of that trade settled before the other did

Robinhood did not respond to dailymail for comment except telling Forbes "All of us at Robinhood are deeply saddened to hear this terrible news and we reached out to share our condolences with the family over the weekend"

They declined to share what he was trading for privacy concerns

Kearns just started trading recently to pass the boredom during the pandemic and was enthusiastic as he learned more about the markets and day trading and made some money but the huge 6 figure loss he saw was what caused him to panic and thought he destroyed his future in just less than a month..

Brewster said "When he saw that 730,000 number as a negative, he thought that he had blow up his entire future. I mean this is a kid that when he was younger was so conscious about savings"

He shared the painful details on his cousin's death hoping to educate the public and push Robinhood to make changes to avoid something like this again to scared young people who are trading in the stock market and don't know the risks

Brewster said "Tragically, i don't even think he made that big of a mistake. This is an interface issue, they have slick interfaces, confetti popping everywhere whenever it shows cash is deposited into his account. They try to gamify trading and couch it as investment"

The app has exploded in popularity attracting 13 million users with a median age of 31 as it is commission free and published traditional brokerages such as Charles Schwab and Merrill Lynch

Would you have a meltdown if you saw a -700000 cash balance?

https://i.imgur.com/fbhiHsd.jpg

https://i.imgur.com/vi0RhJA.jpg

https://i.imgur.com/yu6zEaw.jpg

https://i.imgur.com/6GQFng6.jpg
---

If I saw -730k in my bank account I'd assume it was a glitch, not think I was actually that far in debt

---

Options not even once

---

No. I would just try to figure it out and what to do about it

---

TreyFlowers posted...

If I saw -730k in my bank account I'd assume it was a glitch, not think I was actually that far in debt

And after learning it's real?

I know that feel.

i bought Twitter at the top and it took a huge shit the next day. Was not fun.

Took me two years to break even.

---

TreyFlowers posted...

If I saw -730k in my bank account I'd assume it was a glitch, not think I was actually that far in debt

Now if it was the 750k I owed to Vinny The wobbly testicle Genovese. Then yeah

---

sLaCkEr408___RJ posted...

And after learning it's real?

Ask my parents for a small loan of a million dollars

---

There's a certain point in debt, where I'm just sorta like "fuck it?" Like what are they gonna do? I can't pay that shit. Wouldn't ever kill myself over it.

---

sLaCkEr408___RJ posted...

And after learning it's real?

Declare bankruptcy

---

https://youtu.be/iJYCkoti4ZQ

---

most say yes
---

Is it...even possible to get a negative balance as a trader? Once you have spent the money on a stock...it has been spent, and I'm rather certain that the stock market doesn't have the ability to access your account and siphon money from it at will.

Is it possible to get a negative balance in any account (like digitally) besides an overdraft fee?

---

Perascamin posted...

Is it...even possible to get a negative balance as a trader? Once you have spent the money on a stock...it has been spent, and I'm rather certain that the stock market doesn't have the ability to access your account and siphon money from it at will.

Is it possible to get a negative balance in any account (like digitally) besides an overdraft fee?

Yes

---

PIITB415 posted...

Yes

How?

---

I mean, who wouldn't panic initially?

I wouldn't kill myself because after the initial panic, I'd probably assume it was indeed a glitch.


---

Perascamin posted...

How?

IIRC Leveraging is effectively loaning. You're buying stock with money you don't actually have in the hopes that it will go up and you can make a profit. It's the kind of thing is only really supposed to be done by professionals in a corporate environment where they're managing a mutual fund or something.

---