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An Update on Market Volatility

blog.robinhood.com

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Re: An Update on Market Volatility

#61

Post by aneemzic »

DiabloD3 wrote: post #21
systemvoltage wrote: post #12

Earlier quoted context omitted.

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.

The same reason it didn't effect Facebook. Ratings don't matter for apps that are already household names. There's also no comparable alternative.

Re: An Update on Market Volatility

#64

Post by appleflaxen »

legitster wrote: post #29

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…

nonsense.

the best way to protect this theoretical "bunch of teenagers" would be to block their purchases, but allow buys that are cash in hand.

they did't: they banned all buy orders.

that tells you everything you need to know.

Re: An Update on Market Volatility

#65

Post by cactus2093 »

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…

> but I do worry for people like my dad who can just buy a stock more easily than order dinner.

I can't wrap my head around this argument at all. Why can't you trust your dad about his stock purchases? Yes, someone like your dad can buy a stock easily. They can also lose all their money at a casino or buy a lottery ticket easily. They can spend all their money on gadgets or fancy clothes. They can drink too much alcohol, or gain too much weight. Life comes with risks.

To the extent that a behavior will harm innocent bystanders, then I am fine with making various things illegal, I'm not an anarchist or hard core libertarian or anything. But I don't see how letting someone buy shares of a stock falls into that category of things that could harm innocent bystanders.

Re: An Update on Market Volatility

#66

Post by victorbojica »

DennisP wrote: post #30
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.

How do you know this ?

Re: An Update on Market Volatility

#67

Post by llbeansandrice »

legitster wrote: post #55
llbeansandrice wrote: post #42

Earlier quoted context omitted.

Then why not do what TD did and restrict buying on margin? Why tell everyone on your platform that a "stock isn't supported"?

I am imagining their platform isn't that robust and it was the easiest way they had to shut it down temporarily.

RH doesn't know who's buying on margin?

That's also not my problem as a RH user that's not buying on margin.

Re: An Update on Market Volatility

#68

Post by matttb »

girvo wrote: post #27
RyanShook wrote: post #17

Earlier quoted context omitted.

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.

Webull had to because of Apex, midday they got that sorted out and allowed buying again

Re: An Update on Market Volatility

#69

Post by legitster »

symlinkk wrote: post #48
legitster wrote: post #36

Earlier quoted context omitted.

>Unless you're talking about buying on margin I can assure you, there was a lot of margin purchases happening.

Ok, as a customer why is that my problem? They’re not providing the service they promised. This is absurd.

Because they are on the hook if their customers can't pony up during a margin call. And there are a bunch of teenagers looking at six figure debt when things crash.

Again, this is the difference between a big boy brokerage and a free app. And them providing services they weren't capable of weathering was probably the original sin.

Re: An Update on Market Volatility

#70

Post by ncallaway »

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.

Fair enough. I've immediately liquidated everything in my RH account (I wasn't trading GME or AMC), and I'm waiting to withdraw my funds before I close my account and never touch their app again.

There are plenty of brokers, and web-based brokerages work better than a mobile app for me anyway.

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