Detroit – A Robinhood trader is convinced that deleting his trading app will reset all losses after losing $100,000 on a trade. The trader convinced himself that deleting the app is akin to getting a fresh start or a retry.
“I lost $100,000 dollars trading leveraged ETFs on Robinhood,” Matt Russell, 20, stated. “But there is a fail safe to trading stocks online. All you have to do is delete the app and everything will restart.”
Matt Russell first got into trading stocks when his state went on lock-down due to the COVID-19. “I was bored sitting at home. So I downloaded Robinhood and started day trading my life savings.”
Everything went fine for Matt at first. “I was up $30,000 in a week when I shorted oil. But then I lost it all.”
Matt ended up losing his entire fortune when he went long Luckin Coffee (“LK”).
“I lost over $100,000 dollars,” Matt said in shame.
But all was not lost. According to Matt deleting your Robinhood trading app will reset all losses.
“I’m completely convinced that deleting the app off my phone will reset all of my losses,” Matt said smiling. “It’s a type of fail safe that everyone uses.”
Matt Russell isn’t alone in this thinking. Hundreds of other Robinhood traders have taken to social media platforms saying how deleting the app will reset all losses.
Stephanie Hart, 23, said, “if you lose money trading stocks just delete your Robinhood app and re-download it. This will restart everything.”
Robinhood traders are claiming that deleting the app is akin to legendary investor, Benjamin Graham’s, margin of safety concept.
“Ben Graham talks about margin of safety investing in his book, The Intelligent Investor,” Brock Williamson went. “Deleting the Robinhood app and re-downloading it is the margin of safety I use when trading levered ETFs.”
The concept of deleting a trading app when you lose money has morphed from a social media phenomenon to a mainstream idea. CNBC’s Morgan Brennan covered the concept in her recent series “There’s a Robinhood Trader in All of Us”.
And even the Morning Brew team member, Jamie Wilde mentioned her recent success with deleting her trading app to completely wipe-out all losses.
But does the concept of deleting your trading app to reset all losses really work? According to Joel Greenblatt, founder of Gotham Asset Management, the answer is maybe.
“I never thought about this before,” Joel stated. “When I first started my hedge fund phone apps did not exist. With this new age of technology upon us, I would say anything is possible.”
So the next time you mortgage your grandmothers house, go all in on a levered ETF and lose all of your money, try deleting your trading app. Apparently this is a reset button that will give even the worst traders a second chance.