Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

Post by tony101 » Thu, Jan 25, 2018, 9:52 PM UTC

School-Cotton wrote: post #137

AznHisoka wrote: post #104

Earlier quoted context omitted.

What about stocks with no dividends (which constitutes the vast majority)? By your definition, only dividend investing and rental property investing is true investing. I'm not disagreeing with you. In fact I almost agree with you, but your argument fails for most stocks.

Stocks with no dividends have some probability of paying a dividend (or doing a buyback) in the future. If you could prove that a company will never pay a dividend or do a buyback then its value would be zero.

Post by twostorytower » Thu, Jan 25, 2018, 9:54 PM UTC

sgwealti wrote: post #122

How are they transferring the BTC to your wallet without paying the network/mining/transaction fees?

Post by andrewla » Thu, Jan 25, 2018, 9:58 PM UTC

buttcoinslol wrote: post #215

andrewla wrote: post #201

Earlier quoted context omitted.

> If I take that same money and invest it in a business -- the business is going to take that money and create something new. Only if you're buying at the IPO. Most of the time, you're just buying stock from another person and the company gets zilch. The service you're providing to the company is just better information about its ability to raise additional capital from selling equity. For some cryptocurrencies, you…

The company is also a shareholder and can pay out dividends or buy back stock to increase the price. One pays you directly, and the other increases your stake by diluting the pool of outstanding shares. Both are direct results of actions taken by the corporation, and both create something new: cash and equity, respectively.

Post by almost_usual » Thu, Jan 25, 2018, 10:04 PM UTC

ouid wrote: post #227

abrahamepton wrote: post #210

Earlier quoted context omitted.

Maybe, except the college kids who just give all their money to mutual funds will make more money. The day-traders won't "learn how markets work," they'll learn how to lose money by making dumb trades based on less information than their counterparties. They won't learn anything, aaaannnnyyyyything, of actual value.

if the premise is that you can't make money as a day trader, no matter who you are, because the stock market is essentially efficient, then they aren't making dumb trades with less information, because all information is reflected in the price. What they are doing is accumulating more risk, giving them higher odds of fluctuating out, but the expected value is the same as holding mutual funds, maybe even a little high…

Post by vasilipupkin » Thu, Jan 25, 2018, 10:06 PM UTC

2trill2spill wrote: post #198

buttcoinslol wrote: post #176

Earlier quoted context omitted.

Ah, I didn't know they made money off that part of it. I suppose you give up some privacy/data when they resell your order, similar to using Facebook or Google. It's a slick business model, I didn't even realize it.

> Ah, I didn't know they made money off that part of it. I suppose you give up some privacy/data when they resell your order, similar to using Facebook or Google. It's a slick business model, I didn't even realize it. Your also giving up better trade execution ie paying more for shares. Robinhood is good for getting your feet wet but people should switch brokers as soon as possible.