An Update on Market Volatility • Hacker News Board

Re: An Update on Market Volatility

#121

Post by lamontcg » Thu, Jan 28, 2021, 11:13 PM UTC

ABeeSea wrote: post #116

nightski wrote: post #24

Earlier quoted context omitted.

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.

It’s not meant for day trading; it’s meant for investing.

There's no need for a Capital-I Investment App to be on mobile. You should be doing research on a bigger screen, and when its time to execute trades you shouldn't be doing them on the shitter and shouldn't care if its executed at 9am or 4pm or the next day.

The Robinhood app is totally designed to suck Millennials into daytrading on their mobiles.

Re: An Update on Market Volatility

#122

Post by Miner49er » Thu, Jan 28, 2021, 11:23 PM UTC

Cd00d wrote: post #112

Miner49er wrote: post #101

Earlier quoted context omitted.

It's a short squeeze, not just a bubble? I bought a single share near $400 for the memes, so I wouldn't say "nobody". Some retail investors will likely lose, sure, but the biggest losers will be the shorts, and retail/longs will win as a whole. That's why people are mad, with Robinhood's manipulation they are setting it up so only the shorts win and almost no remaining retail.

I'm sorry I still don't understand and I hope you will clarify. You bought at $400 and expect that to be a good investment? How will the longs that bought above arbitrary number $20 benefit in the long term?

No, at this point it's not about a good investment. It's a "fuck you" to Wall Street. They exploit the working class, get rich, fuck up our economy, and then steal even more from us to save their own asses.

People are tired of it. Gamestop is a form of protest. Robinhood did the worst thing they could by messing with it. They sided with Wall Street against the little guy. It shows how rigged the system is. Apparently the little guy can't exploit a bad trade by the rich, it can only go the other way around. So now Robinhood is on the other side of this, and I hope they go under from it.

Re: An Update on Market Volatility

#123

Post by cactus2093 » Thu, Jan 28, 2021, 11:24 PM UTC

gmaster1440 wrote: post #84

cactus2093 wrote: post #65

Earlier quoted context omitted.

> 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 alco…

> Why can't you trust your dad about his stock purchases? It's not the stock purchases in themselves. It's the degree to which certain stocks are hyped, largely by misinformation and traditional bubble mechanics, that's particularly insidious here. There's a reason why pump-and-dump schemes are traditionally regulated by securities laws.

From what I understand, pump-and-dumps are illegal if you make untrue promises about future behavior or otherwise are shown to deceive or lie about it. Or if you are coordinating to have a certain group all sell at an exact same time to leave others holding the bag.

I suppose it's a fine line, but to me this seems much more loosely coordinated. I don't think there's been any particular time to sell that has been agreed on, and all the communication is out in a public forum. And the demand for the stock is all based around public knowledge that it was shorted 140% of its market cap. It seems like the difference between insider trading vs if information leaks to the public about a company's plans in which case it's completely legal to trade based on.

Re: An Update on Market Volatility

#124

Post by zwieback » Thu, Jan 28, 2021, 11:40 PM UTC

Miner49er wrote: post #122

Cd00d wrote: post #112

Earlier quoted context omitted.

I'm sorry I still don't understand and I hope you will clarify. You bought at $400 and expect that to be a good investment? How will the longs that bought above arbitrary number $20 benefit in the long term?

No, at this point it's not about a good investment. It's a "fuck you" to Wall Street. They exploit the working class, get rich, fuck up our economy, and then steal even more from us to save their own asses. People are tired of it. Gamestop is a form of protest. Robinhood did the worst thing they could by messing with it. They sided with Wall Street against the little guy. It shows how rigged the system is. Apparently…

I have sympathy for the anger against Wall Street but correct me if I'm wrong: the short seller hedge funds are already out and now it's a bunch of little guys left holding the shares until the bubble bursts?

Re: An Update on Market Volatility

#125

Post by Miner49er » Thu, Jan 28, 2021, 11:41 PM UTC

zwieback wrote: post #124

Miner49er wrote: post #122

Earlier quoted context omitted.

No, at this point it's not about a good investment. It's a "fuck you" to Wall Street. They exploit the working class, get rich, fuck up our economy, and then steal even more from us to save their own asses. People are tired of it. Gamestop is a form of protest. Robinhood did the worst thing they could by messing with it. They sided with Wall Street against the little guy. It shows how rigged the system is. Apparently…

I have sympathy for the anger against Wall Street but correct me if I'm wrong: the short seller hedge funds are already out and now it's a bunch of little guys left holding the shares until the bubble bursts?

Nah, there's still ~250% of the float shorted, apparently. The shorts have doubled down.

The (maybe a bit of a conspiracy) theory is they shorted more knowing that Robinhood and other brokers would limit buying today.

Re: An Update on Market Volatility

#126

Post by mrgreenfur » Thu, Jan 28, 2021, 11:42 PM UTC

legitster wrote: post #69

symlinkk wrote: post #48

Earlier quoted context omitted.

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.

I dunno man, the big boy brokerage of IB did the same thing

Re: An Update on Market Volatility

#127

Post by mrgreenfur » Thu, Jan 28, 2021, 11:44 PM UTC

firebaze wrote: post #28

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.

Avoid IB, a serious broker that did exactly the same thing as RH today

Re: An Update on Market Volatility

#128

Post by mrgreenfur » Thu, Jan 28, 2021, 11:52 PM UTC

reducesuffering wrote: post #119

cactus2093 wrote: post #92

Earlier quoted context omitted.

> there are not many guarantees in trading, but that is a guarantee to lose money. What? This is not at all a guarantee. Even if there were a guarantee that it will come back down eventually (which seems highly likely but that's still not a guarantee), that doesn't mean it will go down today or tomorrow or next week. For all we know there is still lots of time for new investors to get in, make money, and then get out…

> For all we know there is still lots of time for new investors to get in, make money, and then get out before the price crashes. Yes, that means an equivalent amount of people will be holding the huge loss, because they bought in when the previous person got out...

The short squeeze is to force the hedge funds to buy at a high price when they have to cover their short. This is the whole plan.

Re: An Update on Market Volatility

#129

Post by ac29 » Thu, Jan 28, 2021, 11:56 PM UTC

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.

If you read the various user agreements, you can see they have nowhere promised to execute 100% of possible trades 100% of the time, and explicitly give themselves the option to make the sort of changes they've made.

Re: An Update on Market Volatility

#130

Post by Cd00d » Fri, Jan 29, 2021, 12:00 AM UTC

Miner49er wrote: post #122

Cd00d wrote: post #112

Earlier quoted context omitted.

I'm sorry I still don't understand and I hope you will clarify. You bought at $400 and expect that to be a good investment? How will the longs that bought above arbitrary number $20 benefit in the long term?

No, at this point it's not about a good investment. It's a "fuck you" to Wall Street. They exploit the working class, get rich, fuck up our economy, and then steal even more from us to save their own asses. People are tired of it. Gamestop is a form of protest. Robinhood did the worst thing they could by messing with it. They sided with Wall Street against the little guy. It shows how rigged the system is. Apparently…

I see. Thank you for the follow-up. Honestly I think your money would go further contributing to a politician that would try to advance reform, but I acknowledge that's not a universal strategy.