That moment you realize you'll be eating toast for the rest of the month.

Bankrupt overnight

February 17 by Stephanie Tan

The stock market: a place where money can be made and lost. The market’s also where reputations can be made or broken – and some people or incidents can live on in infamy…

In this section, which serves as a counterpart to the ubiquitous Monday Motivation posts that can get on a cynic’s nerves, we spotlight the blunders, bloopers and swindlers of the stock market.

Suffering from Monday blues? The only consolation we can offer is – it can always be WORSE!

Demotivation Monday: Bankrupt Overnight

In November 2015, a guy named Joe Campbell went to bed with $37,000 in his online brokerage account and woke up to find out that not only had he lost all his money – but he also owed ETrade more than $100,000.

He had placed a bet against a stock called KaloBio (known on Wall Street as ‘shorting’). Basically, he was betting that the little-known pharmaceutical company’s stock would fall further. The shares were trading at just $2 and he was counting on the price to drop to $1.

That risky bet blew up in his face because in after-hours trading, the stock unexpectedly surged following Turing Pharma CEO (and infamous ‘pharma bro’) Martin Shkreli’s disclosure of a majority stake in the company.

Campbell said he was in a “long meeting” and by the time he came out, KaloBios was trading around $16 per share. So not only was the balance in his account wiped out, but he also now owed ETrade a lot of money. He had mistakenly thought the online broker had a stop-loss that would automatically close a position if the account went to $0. (Luckily, at BUX, we guarantee this!)

The poor bugger then appealed for donations from other traders on a GoFundMe page, saying he was desperate enough to consider liquidating his and his wife’s retirement savings. No update on whether he started a second fundraising campaign for his divorce fees…

Written by

Stephanie Tan

Nomadic wordsmith who has dabbled in public relations, media and now, casual trading. She may not have a head for numbers but she enjoys doing cyber-sleuthing on companies and loves being immersed in all things tech. Connect with her on BUX: @Stephtrades

Disclaimer: All views, opinions or analysis expressed in articles are that of the author and do not represent the views of BUX. Neither BUX nor the author provide financial advice and these articles should not be construed as such.

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