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Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

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Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#61

Post by the_drunkard »

ceilingcorner wrote: post #46
speeder wrote: post #9

This sort of stuff will put people more and more on edge, there is the deplatforming going on, people asserted their power financially, and now getting that removed too, the powers that rule USA don't realize that soon the only tool left to common people is violence? Even more with some irresponsible newspapers blaming the whole thing on GamerGate and Alt-Right, effectively pushing away people that previously could b…

It’s a pretty classic tactic in the history of conflict. By pushing your opponent into a tight position, you force him to strike first, thus giving you complete justification in your disproportionate response.

That tactic worked out well during the French Revolution...

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#62

Post by ericmay »

metalliqaz wrote: post #40
speeder wrote: post #9

This sort of stuff will put people more and more on edge, there is the deplatforming going on, people asserted their power financially, and now getting that removed too, the powers that rule USA don't realize that soon the only tool left to common people is violence? Even more with some irresponsible newspapers blaming the whole thing on GamerGate and Alt-Right, effectively pushing away people that previously could b…

Oh please. Robinhood's business model is not designed for this kind of thing. They are not required to tank their own business to allow malcontents to feel better about themselves.

I always thought the app was good - but my view of the role of the broker is to place my trades. If the SEC wants to shut down trading of a security they should do so.

This will be very disruptive to Robinhood. I think today they made a poor business decision that will affect their valuation and potentially the company itself.

I don't do much trading on Robinhood, mostly for learning or experimenting with small amounts of money but this move has left a sour taste. I'll be closing my account, while recognizing that other brokerages are doing the same (though not all).

edit

Retail investors are locked out, $GME is still going up. What's the fucking excuse now?

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#63

Post by dd36 »

bondarchuk wrote: post #47
wyldfire wrote: post #26

Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…

As far as I understand it robinhood makes (most of their?) money from selling their order flow to hedge funds.

Yes. Hedge funds profit from every trade on RH.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#64

Post by bradleyjg »

sokoloff wrote: post #13
bradleyjg wrote: post #3

If they were just blocking margin trading or trades with unlimited risk that would be one thing. But this smacks of either paternalism or trying to manipulate the market. I hope they lose a lot of customers (or product depending on your POV).

It's absolutely paternalism, IMO. I'm less sure whether I think it's a good thing or not (because I think people buying new positions in GME at this point are unlikely to end up happy about that in mid-Feb.) I'm all for "let 'em play" in general but this is not going to end well for a lot of folks...

It’s pretty hypocritical for a casino to say that you are welcome to keep playing our table games and lose your money to us slowly but you aren’t allowed to sit down at that table full of poker sharks because we are worried you’ll lose your shirt.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#65

Post by kortilla »

bondarchuk wrote: post #47
wyldfire wrote: post #26

Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…

As far as I understand it robinhood makes (most of their?) money from selling their order flow to hedge funds.

Nah, it’s likely net interest that is the largest portion.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#66

Post by JohnJamesRambo »

Dem_Boys wrote: post #38

This whole Game Stop situation has made the power of the rich so obvious and disgusting. They temporarily shut down the market, banned the discord server, and are now preventing people from buying stocks on the most popular app used by small time investors. All of these moves hurt the small time investor trying to cash in on the next bitcoin-like bubble. This just creates more division, more disgust, and more of a cl…

Just invest in Bitcoin now, it is going to do the same thing in a few months. And it can’t be censored like this. I admire the gme crowd’s efforts but they are so misguided. Investing in zombie companies we actually hate is pointless. Yes you might bankrupt a hedge fund or two but the system will continue. Bitcoin was created for the disruption to the corrupt financial system that they are seeking.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#67

Post by sct202 »

moocowtruck wrote: post #34

why would people use this site? it seems very unreliable, i tried with many attempts last night to signup and all I get are strange errors..why would i want to conduct serious business through them if they can't simply handle signups

Robinhood frequently goes down several times a year whenever there's a big event like this that attracts a lot of attention.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#68

Post by malwarebytess »

the_drunkard wrote: post #61
ceilingcorner wrote: post #46

Earlier quoted context omitted.

It’s a pretty classic tactic in the history of conflict. By pushing your opponent into a tight position, you force him to strike first, thus giving you complete justification in your disproportionate response.

That tactic worked out well during the French Revolution...

Obligatory we are at higher inequality than immediately before the French Revolution. Wonder what that means?

Some interesting reading:

Professor Walter Scheidel examines the history of peace and economic inequality over the past 10,000 years - https://news.stanford.edu/2017/01/24/stanford-historian-unco...

Revolution and the Rebirth of Inequality - https://www.jstor.org/stable/2777764?seq=1

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#70

Post by frongpik »

logicchains wrote: post #31
frongpik wrote: post #12

Earlier quoted context omitted.

Don't the ToS include a waiver of taking any legal action against RH, class action suits in particular, and a binding arbitration clause in case you really want to make some noise?

Just because something's in a TOS doesn't make it legally enforceable, especially if you've got enough money collectively for expensive lawyers.

Well, in this case the ToS will be a contract one needs to "digitally sign" in order to open an RH account. RH would simply claim that its customers didn't have to accept the terms, regardless of how bs those were. I'm not a lawyer, though.
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