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Hates Richie Kotzen
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Discussion Starter · #1 ·
https://www.robinhood.com/

I wanted to get back into trading, I like doing small caps sometimes (it's classy gambling, like horse races) but the per trade price of my regular broker makes them impractical for fun stuff like that.

Obviously there are drawbacks, and I wouldn't use it for serious investing, but I put $300 in this morning and am already having a blast.

I read some people's complaints with it, and how they keep trades free obviously is not executing them with the same precision as a more established brokerage.

Still, loads of fun.
 

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Is Actually Recording
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I'd be leery of using ANY platform to invest that's been named for a guy who took from the rich and gave to the poor. :lol:
 

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It's perfect for exactly what you're using it for. Throw a couple hundred bucks in and just play around :yesway:
 

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Discussion Starter · #5 ·
I'd be leery of using ANY platform to invest that's been named for a guy who took from the rich and gave to the poor. :lol:
So here's the review after using it for a bit.

First off, don't look at their social media, they are aimed at hipsters. It's the douchiest thing ever.

They are insured by the proper regulatory bodies, and although the features are stripped down, the stop loss orders work fine. Obviously mandatory on something like this. Interface blows, so actually track your stocks in a forex account with your regular broker or any of the awesome programs out there.

The main drawback is that you can't use funds from a trade immediately, there's a 3-4 day delay. You can upgrade to Robinhood "Instant", but you need to invite friends into joining, which is a little douchey if you ask me.

I've ended up with way more in it than I thought (with more on the way, I believe in the American dream :lol:) due to funds not being immediately solvent after trades, you have to keep liquid buying power.

I throw a couple hundred bucks at the upcoming possible breakouts every morning, because I will probably forget about them in a month and then log back into the app and be like, "Hey, that's a shitload of beer money that piled up while I wasn't looking."

Investment strategy is 30% looking up other people's analysis of technical charts and 70% picking the ones that sound metal. To be fair, Abraxas Petroleum and Viking Pharma are both up since I got them. So it's working so far. God damn SeaDrill better climb, since everyone thinks something epic is about to happen since their CEO and Chairmen both loaded up on millions of dollars of company stock in the past weeks.



To me it is worth it. Because my regular broker merged with Trade King a couple years back and the "Free Trades" I got when I signed up didn't get grandfathered in, so it would be stupid to throw around small change at speculative stuff on $5 a trade.
 

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I'd pass on SeaDrill - fracking has essentially made the offshore drilling industry irrelevant, per-barrel breakevens are too high. I'd be careful in the energy sector as a whole, too - I'm actually short oil at the moment, for the same reason. Recent supply control talks broke down, the Kuwait strikes propped the market for a few days but those have ended, and something like 2mm barrels/day of US oil can still be produced from fracking below $40/barrel, so that's a pretty realistic price cap at the moment, which suggests oil is about as rich as it's going to get. Meanwhile, Saudis are clearly defending market share, not price, and Iran has stated they plan to do the same, since they were able to stay afloat all the way down to $6/barrel during the Iran-Iraq war.

Only problem with synthetic short ETF funds is their overhead is awfully high since they're creating synthetic positions by rolling short-term derivative contracts, so I need a correction in a couple weeks for this to be a profitable trade. I believe it's coming, I just can't say how fast. :lol: For now, though, energy exploration/production small cap is a game of picking up nickels in front of a bulldozer, as the saying goes.
 

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Discussion Starter · #7 ·
For now, though, energy exploration/production small cap is a game of picking up nickels in front of a bulldozer, as the saying goes.
Well, I'm doing mostly small cap stuff in this portfolio. So oil/energy/biotech/software are the big players.

If you have recommendations though, I'm all ears. You do this for a living. I just Google stuff and watch NBC while I eat breakfast. :lol: Why don't you have a stock pick thread here anyways? Stocks are actually a safer investment than the guitar gear most of this forum spends money on.

Or bikes for that matter...
 

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You'd be surprised, MFB. :lol:

Eh, I work for a fixed income firm - we're high grade, so while credit research certainly matters, most of where we make our money is macro positioning since the pickup of an A+ rated muni getting upgraded to AA- is not THAT big. So, I actually spend way less time thinking about individual names than you might think.

That said, I'd take my chances in biotech over the oil industry these days. Maybe fracking firms with low marginal cost of production, or refining firms that stand to benefit from lower input costs, but actual E&P firms, it's a tough sector to stomache right now. I really can't see what would push oil over $50, save an outright domestic fracking ban.

I'd certainly take part in a "what are you holding" stock thread, but most of my portfolio is in broad-market ETFs, and only about 10% is in individual stocks, so again, I'd be surprisingly boring. :lol:
 

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Discussion Starter · #10 ·
I have a bunch of minimal biotech investments going on right now. I would love to throw more than $100-200 at each, because it's been good percentage wise so far, but I'm playing it relatively conservatively.
 

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Not sure if you or anyone else here is still axctively using Robin Hood, but they just got hit with a $65mm SEC settlement today for selling client orders to Wall Street high frequency trading firms, and making the bulk of their revenue for a number of years in thismanner.
 

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Not sure if you or anyone else here is still axctively using Robin Hood, but they just got hit with a $65mm SEC settlement today for selling client orders to Wall Street high frequency trading firms, and making the bulk of their revenue for a number of years in thismanner.
I used it for a couple of months. ended up profiting like $20 and stopped because it was preoccupying too much of my time.
 

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More Socialism for the Rich?
Eh, this is far more likely to protect their users than "the Rich."

Gamestop is NOT, based on any even remotely plausible fundamental analysis, a $200-a-share stock. It was trading at $10 a share around thanksgiving and $15 a share before the pandemic, and before the last week had never even at it's peak broken maybe $65 a share, generally trading well below that, maybe 15-30/share. Prior to this year, if you saw Gamestop in a meme, it was about how they ripped off their customers when buying used games.

Anyone buying Gamestop today, when Robinhood blocked new purchases, was buying because they expected to be able to sell to a bigger fool, as the saying goes, at some point down the road, and unless they did find someone willing to buy for more than they paid, who would then lose money, anyone buying today was going to lose their shirt when this pump-and-dump blows over and GME drops back down to a $10 a share stock.

The one thing r/wsb is missing here is while they may think they're gunning for Wall Street, what they're doing requires people to KEEP buying as the share price rises, and eventually those people are going to lose their shirts. Considering the whole institutional world thinks this is madness and is staying the fuck out, that mean it's going to be retail day traders who get burned. God forbid any of them were buying on margin, the other change they implemented today.

My only problem with this is, like clockwork, the brokerage platforms trying to restrict new purchases are going to be the ones blamed by r/wsb when people lose money now, and that we're giving those guys a scapegoat so they don't have to take blame for their own speculative price bubble.

But, anyone who has a problem with someone blocking new purchases here, do you REALLY think GME is worth more than, um, at present, $231.23?
 

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A buddy got me into Robinhood a few months ago. I put about $300 into various stocks of companies that I support and others I thought had long-term potential. I had a few bucks left over and decided to put it into AMC. At the time, it was trading at under $2/share and I figure that when theaters open up again in six months to a year, it would probably rise.

Well, then this shit happens. I checked my stocks the other day and see that AMC was up to nearly $20/share. It may have peaked higher, but I only noticed when I checked it. I practically do a spit take in surprise, as theaters are still closed, so wtf? I'm at work, talking to a coworker (dude in his early 20's, much more versed in internet culture than I) and mention it, he's like "oh yeah bro, you didn't hear about that shit the reddit community was doing?" I look into it and realize what happened.

So, if AMC tanks again, I won't be out too much. But this whole scenario is entertaining, to say the least.

:pacino:
 

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Hates Richie Kotzen
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Discussion Starter · #19 ·
The one thing r/wsb is missing here is while they may think they're gunning for Wall Street, what they're doing requires people to KEEP buying as the share price rises, and eventually those people are going to lose their shirts. Considering the whole institutional world thinks this is madness and is staying the fuck out, that mean it's going to be retail day traders who get burned. God forbid any of them were buying on margin, the other change they implemented today.
Eh, might as well get used to it. Look at Elon Musks twitter, internet trolls can definitely cause explosive growth in futures over an incredibly short time. Potentially looking at this kind of thing happening more and more, in shorter and shorter times.

In some ways the coverage of this is hypocritical, because the implication that the internet trolls are doing slimy underhanded shit that is too much for the honorable proper stock market crew is ridiculous. Slimy underhanded shit is the name of the game.

It's just been democratized by things like Elon Musks twitter and Reddit. So now a larger audience than ever can do it. Which is dangerous. The implication that this kind of scheme didn't exist before in "proper" stock circles and is an "internet meme lord trolling" thing some outlets are hinting at is a bit disingenuous.

The actual scheme they are pulling is old as fuck, and definitely isn't the sort of thing "proper" stock brokers would look at and say, "that's just not fair old chap, that's not how it's done, pip pip, god save the queen".

The difference with this is the incredibly wide demographic pulling the scheme is something no one would have predicted twenty years ago.

The "bring down wallstreet" shit is ridiculous, but I'm not really going to feel too bad about proper traders getting burned. They knew the risks going in to a career buying stocks. They would also fuck another demographic over in a split second if there was financial gain for them. They aren't exactly African war orphans.

The Che Guevera vibe is chuckle worthy, but if you make a living doing cutthroat shit, you don't really deserve much sympathy when it's your throat that ends up cut. Live by the sword, die by the sword and all that.
 

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Discussion Starter · #20 ·
A lot of the "proper" people getting burned on this are also the kind of people who put the "douche" in "fiduciary responsibility". It's not like it's only the internet meme crowd that tries crazy shit that fucks a bunch of people over to get rich. To the best of my knowledge, Bernie Madoff wasn't a 4chan poster. The white collar ivy league crowd has also tried some pretty dumb things in the name of making a buck.
 
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