02-05-2022, 08:46 AM
As the US bull run surge in mid 2020 to late 2021, many hyped stocks without fundamentals doubled and tripled. Investing in disruptive companies became latest fad led by Cathie Woods.
Small investors buy all sorts of stories like they are the next Tesla. Dreams of riches abound for investors ...especially young investors. Not understanding fully what you invest in is okay ...as many going rich investing in bitcoin without ever knowing what a blockchain is.
The platform of choice is Robinhood. Young traders are looking to double their money in 5 days not 5 years. How to do it.? Use margin and options.
In the end when the house of cards fell and Cathie Woods flagship ARKK fell by 70% .....the sobering effects of leverage as a sword that cuts both ways take effect.
The word "margin call" is searched more often today than ever in history. It is only exceeded once when the movie "margin call" came out. But margin call is higher today than in the 2008 crash.
That is why at a snap we can see US markets fall by 3% meltdown when hardly any newsworthy financial headlines appear. Dow slice down 1000pts like hot knife through butter.
![[Image: VpKEylc.jpg]](https://i.imgur.com/VpKEylc.jpg)
Robinhood gamify trading turning it into a video game. Players think they are in virtual world but weapons like options and margin has real world consequences ....
Small investors buy all sorts of stories like they are the next Tesla. Dreams of riches abound for investors ...especially young investors. Not understanding fully what you invest in is okay ...as many going rich investing in bitcoin without ever knowing what a blockchain is.
The platform of choice is Robinhood. Young traders are looking to double their money in 5 days not 5 years. How to do it.? Use margin and options.
In the end when the house of cards fell and Cathie Woods flagship ARKK fell by 70% .....the sobering effects of leverage as a sword that cuts both ways take effect.
The word "margin call" is searched more often today than ever in history. It is only exceeded once when the movie "margin call" came out. But margin call is higher today than in the 2008 crash.
That is why at a snap we can see US markets fall by 3% meltdown when hardly any newsworthy financial headlines appear. Dow slice down 1000pts like hot knife through butter.
![[Image: VpKEylc.jpg]](https://i.imgur.com/VpKEylc.jpg)
Robinhood gamify trading turning it into a video game. Players think they are in virtual world but weapons like options and margin has real world consequences ....
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.