I find it very hard to believe hundreds of thousands of new accounts were created since Thursday. Everyone I know trading on RH is now actively in the process of transferring out, once they close up their short term trades like GME.
I'm curious if this is to address the current potential of a large shift of users moving to different brokerages and to keep Robinhood afloat until IPO in which it will have to fend for itself. I've seen a large sentiment online, and in public spaces expressing how angry the consumer is about RH restricting trading.
This is a fascinating game to watch. I watched The Big Short yesterday for the first time, as it's trending on Netflix and was suggested, and this moment feels similar to exposing a weakness in the system that needs to be addressed - and hopefully not to strengthen the wrong position; I didn't realize the incredible actors cast for it, obviously they took on the roles as it's an incredibly important story for the general public to be educated about, to understand.
Feels like a good day to watch The Wolf of Wall Sreet.
Imagine you found a number one trading platform and end up having to dilute your stake by a factor of 2 (or more likely) within a week because of a meme stock. I actually feel bad for the founding members at RH.
This is temporary relief for people who have totally uninsured crypto on RH. If RH fails, all the crypto disappears. You can't move crypto off of RH to a personal wallet and if you sell to get it off, you take a ~30% tax hit.
We are starting to see the limits these apps have, they are just not cut out to be considered a professional broker.
It's funny they worry so much about (short-term) liquidity, while their long-term brand & trust & customer base erodes irrecoverably by the minute.
of course
they showed the world, that sheeps are willing to keep using their services
keep buying $GME, you are helping them ;)
Non-Paywall archive version: http://archive.is/DFY5q
50% of options trading is luck. So to reduce risk they created Robinho od to steal money from poor people. Basically every major corporation is in on it. They control what articles we get based on who lives in a poor area vs a rich area.
Lol wish I could short Robinhood. It will be bankrupt within 4 years.
https://www.sec.gov/comments/s7-08-09/s70809-407a.pdf Related: The Counterfeiting of Shares of Fannie Mae and Freddie Mac A. Counterfeiting Stocks Through Electronic Delivery Naked short selling is cute terminology developed by Wall Street to confuse the fact that this is simply a method of counterfeiting shares of U.S. publicly traded companies. At a speech at the Mayflower Hotel in Washington D.C. on November 16, 2007, former SEC Chairman Harvey Pitt stated, ―Phantom shares created by naked shorting are analogous to counterfeit money.
A well known fact for SEC from decades.
Not sure how others feel but given their recent actions I'd love to see a petition for a name change.
It puzzles me how people still think Robinhood can remain competitive knowing they sell user's order flow to hedge funds and restricted free market movement of capital in the markets. Still restricting purchases of GME and looks like this was just to keep the lights on.
There isn't going to be an IPO after this GME fiasco. The founders played themselves and possibly will never be trusted again.
Also the people who invested in RH and its unscrupulous practices, Andreesen, Sequoia etc., are myopic if they don't think people will forget.
"The fish rots from the head." - old Russian proverb.
The stocks(GME) are still limited/restricted btw