An Update on Market Volatility • Hacker News Board

Re: An Update on Market Volatility

#21

Post by DiabloD3 » Thu, Jan 28, 2021, 9:49 PM UTC

systemvoltage wrote: post #12

cowllin wrote: post #4

Too little too late as far as brand reputation. Feels like #DeleteUber on steroids.

Mark my words - Robinhood is going to be fine and it will have negligible impact. They have a strong product and better than anyone else in the market as a mobile app.

How are they going to deal with the fact half of their reviews on Google Play are 1 star, and their average is now 1.x star? Google isn't going to bend over backwards for them to delete legitimate user reviews.

Re: An Update on Market Volatility

#22

Post by tomcam » Thu, Jan 28, 2021, 9:49 PM UTC

Yeah fuck them

Re: An Update on Market Volatility

#23

Post by gmaster1440 » Thu, Jan 28, 2021, 9:49 PM UTC

platz wrote: post #18

gmaster1440 wrote: post #7

We're in a bubble that's being used instrumentally in a game of chicken between average joe with RH account and hedge funds on their short positions. There's more to gain from this because of the social aspect (social change and reform), but also more to lose (bubble bursting on the average citizen that has more to lose personally than a fund). I'm obviously not cheering for the funds here, but I do worry for people…

Only invest what you can afford to loose

Seems like common sense, but I am willing to bet average joe RH investor does not have the financial hygiene to appreciate that fact enough.

Re: An Update on Market Volatility

#24

Post by nightski » Thu, Jan 28, 2021, 9:50 PM UTC

systemvoltage wrote: post #12

cowllin wrote: post #4

Too little too late as far as brand reputation. Feels like #DeleteUber on steroids.

Mark my words - Robinhood is going to be fine and it will have negligible impact. They have a strong product and better than anyone else in the market as a mobile app.

It's a pretty product but calling it "strong" is very generous. It goes down constantly and I'd personally never trust more than a few hundred bucks to the platform. It's by far one of the worst brokerages in terms of execution and reliability.

Re: An Update on Market Volatility

#25

Post by awillen » Thu, Jan 28, 2021, 9:50 PM UTC

I don't understand how they can blame capital requirements and potentially having to cover customers' losses (that was Interactive Brokers) for stopping purchases of the stock. Unless you're talking about buying on margin, there's no risk that you'd have to absorb any loss for someone who just buys a share of the stock through you with their own cash.

Re: An Update on Market Volatility

#26

Post by Someone1234 » Thu, Jan 28, 2021, 9:50 PM UTC

always_left wrote: post #5

What does "limited" even mean?! It's already limited to hedge funds.

Likely no margin at all. Maybe even to the point of cash needing to clear into your account (from previous trades/ACH transfers) before you can buy these stocks.

Maybe limits/ban on selling of options where the loss can be unlimited (as opposed to buying where the limit is the option's contract price).

Re: An Update on Market Volatility

#27

Post by girvo » Thu, Jan 28, 2021, 9:50 PM UTC

RyanShook wrote: post #17

oh_sigh wrote: post #8

If it was decided that most people could only sell stock, not buy it - who exactly is buying the stock?

Not all brokerages have banned buying so those who are buying are using a different brokerage. A lot of Robinhood users are now moving to other discount brokers like Webull.

Webull has blocked it too. As has Cash App of all things.

This seems coordinated tbqh.

Re: An Update on Market Volatility

#28

Post by firebaze » Thu, Jan 28, 2021, 9:50 PM UTC

Just stay away from robinhood. Use a serious broker. Even if you - privileged as you are - think you can deal with that. Others may not see as far, and be scammed.

Re: An Update on Market Volatility

#29

Post by legitster » Thu, Jan 28, 2021, 9:51 PM UTC

It's pretty clear that Robinhood users are incredibly leveraged right now on these transactions. Someone in finance probably gave their team a "Come to Bernanke moment" and pointed out that when the bubble pops they will be eating a huge load of crap where they are on the hook for a bunch of teenagers' margin calls.

It's crappy all around, but the ball was in their court for giving so many people the ability to trade on the margin.

Re: An Update on Market Volatility

#30

Post by DennisP » Thu, Jan 28, 2021, 9:51 PM UTC

oh_sigh wrote: post #8

If it was decided that most people could only sell stock, not buy it - who exactly is buying the stock?

It was blocked in Robinhood's UI, but on the back end the hedge funds could trade at will. And the hedge funds had to buy a lot of stock to cover their shorts, so it was handy to get the retail buyers out of the way.