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Robinhood’s big gamble

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Re: Robinhood’s big gamble

#41

Post by SmellTheGlove »

Someone1234 wrote: post #21

I have a Schwab brokerage account, until recently I could trade OTCs and can still trade warrants and futures. These are riskier securities than common stock. None of which is possible on RH as far as I know. When I created my Schwab account I received and was offered no specific training, and largely learned how to trade on YT, Investopedia, and articles. My point is this: RH has become the media's favorite whipping…

Schwab doesn't have outages during sell-offs of very visible investments, though. Hasn't Robinhood hit the rocks pretty hard during GME and DOGE sell-offs recently? The reason I won't use them is because I don't think I'm their customer - whoever is paying for the order flow is, and I don't trust their platform to be available in the middle of turbulence.

EDIT: I get it - Schwab also had visible outages. Sorry for that. Maybe a good time to say I'm a happy Fidelity customer and have been for years :D

Re: Robinhood’s big gamble

#42

Post by jack_pp »

pembrook wrote: post #22
notyourwork wrote: post #3

The internet makes risky behavior more accessible by very nature of connectivity. You can talk to someone on the other side of the world with much less friction. Similarly, a fintech company like Robinhood decided to make stock trading more modern and reduce the barrier to entry. Granted, this wasn't really a big change in accessibility if you wanted to trade stocks. One could simply goto Fidelity ore other brokers a…

> That doesn't mean Robinhood is encouraging it intentionally This is news to me. As far as I can tell, everything about their app is designed for you to treat the stock market like a game. From the notification defaults down to the content layout. They also sign users up for a daily stock market newsletter that encourages "trading the news" and their unofficial user forum is essentially Wall Street Bets, which they…

The stock market is, was and always will be a game.

Re: Robinhood’s big gamble

#43

Post by 99_00 »

Everyone is encouraging risk taking. If you don't follow suit you will won't make money. It's basic strategy.

Eventually the risk taking will result in you no longer making money when things go bad.

But at that point when your fund, brokerage, whatever, goes bust you will have a very nice personal bank account.

The person who didn't encourage risk will also go out of business (because everything will be dragged down) but they won't have a nice personal bank account.

Why would you choose to be the poor person?

Re: Robinhood’s big gamble

#44

Post by quickthrowman »

diabeticApe wrote: post #29

Well seeing as stock trading is inherently risky, democratizing trading makes this risky activity more accessible to more people. Now instead of just the elite manipulating the market to benefit themselves at the expense of the public, the public gets a chance to turn the tables. Some of the newbies will make mistakes or do stupid things along the way. To consider them mutually exclusive seems a bit disingenuous. Als…

> Also I dont recall this much media turmoil over the credit default swap mortgage crisis fiasco of 2008.

Were you a small child in 2008 or something? The GFC and its causes (CDS and CDO blowups, among other things) were widely talked about when it was happening, you couldnt go a day without hearing about exotic derivatives and their effects on the economy/markets in the news.

Re: Robinhood’s big gamble

#45

Post by arcticfox »

joncp wrote: post #36

Definitely. Here's a couple of things that hit me in the face when I use RH: 1) You open the app and the first view is the one-day graph with the bottom lopped off of the y-axis. This encourages day trading and reacting to tiny fluctuations in the market. If they want to encourage investing over gambling, they'd show you the long-term graph of your portfolio. Or maybe skip the graph and take me to the fundamentals. 2…

> Crypto has never and can never be an investment

Whether you like or dislike crypto, this seems false according to both the dictionary and common use definition

Re: Robinhood’s big gamble

#46

Post by cowmoo728 »

themanmaran wrote: post #14
cowmoo728 wrote: post #12

Earlier quoted context omitted.

Isn't pushing Robinhood gold (leverage) onto users with repeated in app messaging about how great it is, Robinhood pushing users to do irresponsible things? Or the fact that if you end the day down, your whole app is red, unless you deposit enough additional cash to cover your losses and then it switches back to green? (edit note: not sure if this is still the case but it was true in the early days of the android app…

If you deposit more cash than you lost in a day, does it flip back to green? As far as I remember, it's just based on the gains / losses you had during the day. So depositing cash at the end of the day shouldn't affect your gain/loss.

I deleted Robinhood about a year ago but I remember early in Robinhood days that I deposited cash and it flipped back to green. Hopefully they changed that behavior by now.

Re: Robinhood’s big gamble

#47

Post by ProAm »

Someone1234 wrote: post #21

I have a Schwab brokerage account, until recently I could trade OTCs and can still trade warrants and futures. These are riskier securities than common stock. None of which is possible on RH as far as I know. When I created my Schwab account I received and was offered no specific training, and largely learned how to trade on YT, Investopedia, and articles. My point is this: RH has become the media's favorite whipping…

> RH has become the media's favorite whipping boy because retail trading has seen a spike in popularity

Because they cant operate as a real brokerage as we saw with GameStop and manipulated the market as a result. I think that is the largest reason they are (rightfully) the whipping boy. They should not be allowed to be a trading platform because of that alone.

Re: Robinhood’s big gamble

#48

Post by haskellandchill »

99_00 wrote: post #43

Everyone is encouraging risk taking. If you don't follow suit you will won't make money. It's basic strategy. Eventually the risk taking will result in you no longer making money when things go bad. But at that point when your fund, brokerage, whatever, goes bust you will have a very nice personal bank account. The person who didn't encourage risk will also go out of business (because everything will be dragged down)…

Because you actually believe in things and don't just follow trends. Fundamentals work, they really do.

Re: Robinhood’s big gamble

#49

Post by jeffbee »

SmellTheGlove wrote: post #41
Someone1234 wrote: post #21

I have a Schwab brokerage account, until recently I could trade OTCs and can still trade warrants and futures. These are riskier securities than common stock. None of which is possible on RH as far as I know. When I created my Schwab account I received and was offered no specific training, and largely learned how to trade on YT, Investopedia, and articles. My point is this: RH has become the media's favorite whipping…

Schwab doesn't have outages during sell-offs of very visible investments, though. Hasn't Robinhood hit the rocks pretty hard during GME and DOGE sell-offs recently? The reason I won't use them is because I don't think I'm their customer - whoever is paying for the order flow is, and I don't trust their platform to be available in the middle of turbulence. EDIT: I get it - Schwab also had visible outages. Sorry for th…

Eh, Schwab regularly has outages. Schwab went down five days in a row during the height of the GameStop stupidity, for example.

Re: Robinhood’s big gamble

#50

Post by eckmLJE »

callamdelaney wrote: post #39
Someone1234 wrote: post #21

I have a Schwab brokerage account, until recently I could trade OTCs and can still trade warrants and futures. These are riskier securities than common stock. None of which is possible on RH as far as I know. When I created my Schwab account I received and was offered no specific training, and largely learned how to trade on YT, Investopedia, and articles. My point is this: RH has become the media's favorite whipping…

Yes, but Robinhood have taken actions which purposefully harmed its users in order to benefit their corporate customers(Citadel). https://www.independent.co.uk/news/business/robinhood-gamest...

It will be interesting to see if this can be proven. Until then it seems more accurate to simply say that Robinhood took actions that harmed its users and benefited its corporate customers.
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