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Robinhood, in Need of Cash, Raises $1B from Its Investors

nytimes.com

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Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#201

Post by sdan »

egwor wrote: post #192
codesternews wrote: post #103

Earlier quoted context omitted.

Yes, they are forced to sell and other robinhood users could not buy. It means they allowed selling and restricted buying that will eventually make stock goes down because no other person even if they want to can't buy.

So the market price which is made from all transactions from all brokers will drop because robinhood users could not buy. That makes no sense to me. If they really wanted to buy they could use another broker? If the market really is dropping then tough luck. You can lose all your money investing in the stock market. If you're leveraged you can lose even more (which might explain why some accounts were closed).

As I said, stocks are inherently risky and should not open positions thinking you’ll strike it rich overnight; what I am saying is that robinhood swiftly stopped retail price action ( because most retail volume is from RH) which caused the price to plummet. Volume for amc and gme also got split for the day yesterday compared to Tuesday (which can be blamed because other brokers also eventually stopped trading these stocks later in the day).

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#202

Post by KptMarchewa »

egwor wrote: post #192
codesternews wrote: post #103

Earlier quoted context omitted.

Yes, they are forced to sell and other robinhood users could not buy. It means they allowed selling and restricted buying that will eventually make stock goes down because no other person even if they want to can't buy.

So the market price which is made from all transactions from all brokers will drop because robinhood users could not buy. That makes no sense to me. If they really wanted to buy they could use another broker? If the market really is dropping then tough luck. You can lose all your money investing in the stock market. If you're leveraged you can lose even more (which might explain why some accounts were closed).

>That makes no sense to me. If they really wanted to buy they could use another broker?

That's assuming you have multiple accounts in brokerages, and multiple other ones also have blocked buys (for example Interactive Brokers).

Market will be dropping if significant number of people who want to buy are unable due to third party actions, that's exactly what's market manipulation.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#203

Post by KptMarchewa »

Clewza313 wrote: post #67
bredren wrote: post #36

Earlier quoted context omitted.

I had a neutral to negative view toward this product before today. In part due to the product’s UX having to change after a customer killed themselves and cited the app in their suicide note. [1] I noticed that before but bad stuff happens, I had not heard of further issues and it was likely a series of contributing factors. That said, this bind broke the entire concept of the branding of the product. I’d never insta…

They've lost the trust of people YOLOing on meme stonks. I'm sure it's a noisy part of their userbase, but still only a part. It would be interesting to see stats on how many people use RH for long-term investments (buy and hold, DCA, etc), and how many use it as a form of gambling (day trading, leveraged options etc).

Most Robinhood users were holding GME in the past few days.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#204

Post by nly »

kmlx wrote: post #199
onion2k wrote: post #96

Earlier quoted context omitted.

I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…

i've used: 1. revolut - these guys are complete jokers. closed after being asked to provide the proof of funding 3 times in 3 months. 2. hsbc/first direct - somewhat decent. but i only use it to top up my other accounts. i try to avoid them, as they're just too big. 3. starling - simple, no-nonsense banking from a startup. 4. revolut business - had my account closed down by the "bank" because they didn't want my busi…

If you need a EUR account with a good app, TransferWise, who power Revoluts multicurrency action on the backend, are pretty decent. Horrid luminous green card though.

I'm an investor in Revolut due to their aggressive growth strategy, but I wouldn't use them personally.

As for Monzo, I like their app but missing features like being able to view your full CVV number in app, or link the app to all your other bank accounts on the free tier, basically prevent me from using them as my primary bank

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#205

Post by smileybarry »

egwor wrote: post #192
codesternews wrote: post #103

Earlier quoted context omitted.

Yes, they are forced to sell and other robinhood users could not buy. It means they allowed selling and restricted buying that will eventually make stock goes down because no other person even if they want to can't buy.

So the market price which is made from all transactions from all brokers will drop because robinhood users could not buy. That makes no sense to me. If they really wanted to buy they could use another broker? If the market really is dropping then tough luck. You can lose all your money investing in the stock market. If you're leveraged you can lose even more (which might explain why some accounts were closed).

Robinhood, apart from holding a big chunk of the market, were not the only brokers freezing buys on GME, AMC and others -- Trading 212, eToro, CashApp, and more I forgot by now froze it as well. Your only options were "non-app" brokers, like a bank stock portfolio, which no one could really open on the same day.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#206

Post by nly »

nly wrote: post #204
kmlx wrote: post #199

Earlier quoted context omitted.

i've used: 1. revolut - these guys are complete jokers. closed after being asked to provide the proof of funding 3 times in 3 months. 2. hsbc/first direct - somewhat decent. but i only use it to top up my other accounts. i try to avoid them, as they're just too big. 3. starling - simple, no-nonsense banking from a startup. 4. revolut business - had my account closed down by the "bank" because they didn't want my busi…

If you need a EUR account with a good app, TransferWise, who power Revoluts multicurrency action on the backend, are pretty decent. Horrid luminous green card though. I'm an investor in Revolut due to their aggressive growth strategy, but I wouldn't use them personally. As for Monzo, I like their app but missing features like being able to view your full CVV number in app, or link the app to all your other bank accou…

To expand on my last paragraph: Revolut actually do spending analytics across all your linked accounts. on the free tier.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#207

Post by bitlevel »

onion2k wrote: post #96
peytn wrote: post #37

Earlier quoted context omitted.

I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.

I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…

Try Starling - I am an HSBC customer currently, but am migrating.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#208

Post by jeremycarter »

pishpash wrote: post #183
Xxplosive wrote: post #118

I wonder if Robinhood is preparing for the possibility that its margin book gets blown up when GME inevitably crashes. Crashing price creates cascading margin calls and they can't liquidate their customers' positions fast enough and end up having to cover their losses, rendering them insolvent. Sequoia, thinking that the fundamentals of the company are still solid long term and that they can wash their hands of this…

Did their customers all buy on margin?

I believe you can also increase your leverage.

https://learn.robinhood.com/articles/4UWpxUy5G0KNDSbcMRs6WE/...

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#209

Post by kklisura »

29athrowaway wrote: post #167

To understand why this is happening, you need to understand the person that started it all: u/deepfuckingvalue https://www.reddit.com/user/deepfuckingvalue He posted updates regularly of his positions. Scroll all the way down and see how much money he made over time. As he started becoming more successful, more and more people wanted to replicate his success, eventually creating the movement that you hear about today…

I read somewhere that u/deepfuckingvalue is this guy[0], but can't confirm it.

[0] https://www.youtube.com/watch?v=GZTr1-Gp74U&ab_channel=Roari...

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#210

Post by nly »

pishpash wrote: post #169
neximo64 wrote: post #124

Earlier quoted context omitted.

Your bank actually has to lie to you to remain solvent. All banks do. The Central Bank also encourage it. Last year you saw both that banks were 'forced' to withhold dividends and they were perfectly capitalised. Both cant be true of course. If they hide it from you your money and everyones money is safe. If they tell the truth everyone loses, so it is actually the best outcome for you and everyone else. The fraction…

That's why there should be no banks, only money market funds. Every deposit is an investment decision. You may as well reap the rewards if you take all the risks of lending and cut out the middleman. I've been using a brokerage account for banking for years.

Taking those risks has trade offs most people aren't prepared to make.

The online P2P lending boom here in the UK from financial crisis onward gave people this opportunity.

The end result, 10+ years in, has been subdued returns (relative to e.g. stocks) and crippling illiquidity, as you are exposed to all those late payments, defaults, and have no access to a functional secondary market.

Honestly you're lucky if you can get most people to even use a separate savings account. I know many people who keep 100% of their savings in their current (checking) account.

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