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Bah. I still suck.
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Their shares are absolutely not worth $200 but that's not really the point. Robinhood should not be preventing users from buying/selling anything. Their terms/conditions I'm sure have a clause that states something like "...trading stocks is serious business and you may end up losing money. We're not liable for your stupid mistakes..". This action by Robinhood just reeks of collusion to help other businesses in the stock trading world. Now Robinhood users are getting emails saying that Robinhood is automatically selling their Gamestop shares (without their prior consent, terms/conditions clause withstanding).

Drew's right that this is basically a shit sandwich all around with no (eventual) winners. This whole concept of shorting seems pretty sleezy but pretty on-brand for capitalism.
 

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Drew's right that this is basically a shit sandwich all around with no (eventual) winners. This whole concept of shorting seems pretty sleezy but pretty on-brand for capitalism.
Hedge funds and whatnot are more like gambling than capitalism. Except without the pretty waitress bringing you a drink every half hour.

I'm sure Robinhood doesn't want to have to engage in years of lawfare with well-heeled Wall Street types, even if they didn't do anything wrong. Easier just to cut this off (whether legitimately or not).
 

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Hates Richie Kotzen
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Discussion Starter · #23 ·
Their shares are absolutely not worth $200 but that's not really the point. Robinhood should not be preventing users from buying/selling anything. Their terms/conditions I'm sure have a clause that states something like "...trading stocks is serious business and you may end up losing money. We're not liable for your stupid mistakes..". This action by Robinhood just reeks of collusion to help other businesses in the stock trading world. Now Robinhood users are getting emails saying that Robinhood is automatically selling their Gamestop shares (without their prior consent, terms/conditions clause withstanding).

Drew's right that this is basically a shit sandwich all around with no (eventual) winners. This whole concept of shorting seems pretty sleezy but pretty on-brand for capitalism.
Said users should have read the fine print on Robin Hood's stuff. :lol: I mean, obviously they are shitty, you should have known that from the ridiculously "stealing from the rich to give to the poor, but who are we kidding, this is for cryptocurrency types who browse the dark web" over the top name.

Basically, if you trade with Robin Hood, especially short term, stop. There are only a couple ways for a company like that to offer free trades, they have to do cut rate shit somewhere. I quit after using it for like, a month or two and went back to using Trade King.

Robin Hood is a disaster for aspiring day traders. Read the fine print. They have a ridiculously large window after you make an order in which they place the trade. And "a ridiculously large window that could be hours later" isn't what you want to hear if you are getting into day trading.

TL;DR: Robin Hood is not a reputable company. Even by capitalism standards.
 

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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.
Someone on a tech podcast that's covering this said "it's like they (Wall Street) created the world's biggest casino, and are now surprised the gamblers are showing up". :lol: Appropriate, I think.
 

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Señor Member
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Funny Greg invoked Musk, since apparently he said he liked Cyberpunk which caused the parent company stock to surge despite the worst game launch in modern history.
 

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Is Actually Recording
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Their shares are absolutely not worth $200 but that's not really the point. Robinhood should not be preventing users from buying/selling anything. Their terms/conditions I'm sure have a clause that states something like "...trading stocks is serious business and you may end up losing money. We're not liable for your stupid mistakes..". This action by Robinhood just reeks of collusion to help other businesses in the stock trading world. Now Robinhood users are getting emails saying that Robinhood is automatically selling their Gamestop shares (without their prior consent, terms/conditions clause withstanding).

Drew's right that this is basically a shit sandwich all around with no (eventual) winners. This whole concept of shorting seems pretty sleezy but pretty on-brand for capitalism.
With two caveats, I agree, I think:
*Everyone was locked out during the circuit breaker limit-up/limit-down pauses, so Robinhood doesn't deserve blame for those, only for restricting new buys when the market itself was open.
*Robinhood has only been selling GME shares out of margin accounts, while GME's share price was tanking. This is a pretty standard part of margin agreements, that the broker retains the authorization to sell shares (with no further prior consent than the margin agreement itself) bought on margin to pay down margin, as if they don't and the account value goes negative and the trader can't add cash to bring it back to $0, the brokerage firm is on the hook for what's now a defaulted loan. Anyone who didn't know this didn't read the form they signed, and while I haven't seen theirs specifically, I know my own brokerage account's margin agreement requires me to agree to this.

They didn't handle this well, though, and when this bubble eventually blows up, things like this are going to make them an attractive scapegoat for people who don't want to take the blame for buying a stock they KNOW wasn't worth $400, for $400.

Hedge funds and whatnot are more like gambling than capitalism. Except without the pretty waitress bringing you a drink every half hour.

I'm sure Robinhood doesn't want to have to engage in years of lawfare with well-heeled Wall Street types, even if they didn't do anything wrong. Easier just to cut this off (whether legitimately or not).
I'd agree it's "gambling" in the way an extremely proficient poker player playing in a high stakes tournament is gambling - you may not know the outcomes, but you know the probabilities and can make risk-weighted assessments of various potential outcomes based on those probabilities. What's happening now is basically someone else on the table drawing pocket aces and two more coming up on the flop - a whole subreddit getting in on a trade is a low-probability outcome, and in general the proposition that Gamestock's stock was probably going to decline in value - during a pandemic, when their brand as toast anyway and the world was increasingly moving towards digital delivery - was not a unlikely one. If anything, the biggest fuck-up of these hedge funds was not paying enough attention to the risks posed by how crowded this trade was.

Which, ironically, is the same thing every retail trader buying GME now is doing. :lol:
 

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Is Actually Recording
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Also, iin case any of you are trading GME right now, counting on a continued short squeeze, this is definitely worth a look:

https://www.finra.org/filing-reporting/regulatory-filing-systems/short-interest

The reported short interest of GME is 120%, but that's as of January 15th, when GME was worth $35.50. Anyone short back then - including the two funds getting the most attention, who have already confirmed this - has almost certainly closed their short, and any funds who have put up new shorts when the price was in the $250-350 range (because you KNOW that's happening) are going to have very different pain points than someone who shorted it at $30/share. The most likely catalyst for further price increases, IMO, is retail buying, not short covering, and that means retail buyers are likely to lose their shirts.
 

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Discussion Starter · #29 ·
This is a pretty standard part of margin agreements
Drew, it's a phone app. It might have a PC client and login now, but when it started it was "oh look, it's like, the iphone of stock trading, you only have a couple buttons, we handle the rest, it's a new way to trade". None of their target audience read the fine print. :lol:

I used Robin Hood for like three months, and in the following years I have gotten a small forests worth of mail asking me to join class actions against them orchestrated by some disgruntled person who thought they would be the next Warren Buffet by tapping a couple buttons on their phone.

This is in addition to the small forest worth of mail asking you to join class actions if you buy small cap stocks through Robin Hood. Which I did for less than a year. :lol: So it's two small forests worth really. You get class action invitation mail if you buy small cap stocks through any other broker too, but if you trade with Robin Hood you should talk to your post office about getting a bigger mail box.
 

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Hates Richie Kotzen
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Discussion Starter · #30 ·
It's actually funny, Robin Hood is such a piece of shit that they routinely kept straight up ignoring orders I sent, so I left a few small holdings of penny stocks there because trading with them fucking sucked and half the time they would not even follow through on orders.

I logged in like, two years later, and one of them was close to a 10 bagger. I only caught it on the downturn, but I still got like a 400% return. So thanks Robin Hood. It was in the top 3 returns I have ever gotten gambling on the penny stock shit.

Not as good as if I had had the sense to buy Kodak stock before Trump inexplicably announced they would be making vaccines though. How could I not have seen that one coming?
 

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Is Actually Recording
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So would now be the time to start shorting GME?
I'd bet heavily that's a very popular trade by tactical funds right now. :lol:

Drew, it's a phone app. It might have a PC client and login now, but when it started it was "oh look, it's like, the iphone of stock trading, you only have a couple buttons, we handle the rest, it's a new way to trade". None of their target audience read the fine print. :lol:
I mean, that's a pretty compelling reason why no-fee trading apps are a bad idea, right? :lol:
 

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Discussion Starter · #33 ·
I mean, that's a pretty compelling reason why no-fee trading apps are a bad idea, right? :lol:
I actually originally liked the idea of a really stripped down bare bones brokerage. I had a bit of enthusiasm when the app was originally launched.

I bailed when they unveiled "Robin Hood Gold". This was like, at least four years ago mind you. You just signed your name for the "Gold Program" and they "gave" you $1500. Didn't read the "free $1500!" fine print, I'm sure it was really ridiculous. I'm sure a lot of the people that thought it was a good deal didn't read it either for that matter. :lol: At that point I was like, "there is no way this is a legit stripped down brokerage, they are just looking for suckers". At that point it was like, "there is no way I am trusting these guys with my money".

I'm actually really surprised they made it this long. I guess a lot of people don't know about the "smell test".

I believe the "free $1500 for aspiring Warren Buffets" was probably backed by Affirm though. The credit firm you see on every fly by night trendy gear brand site and reverb listing that informs you about buying a $300 pedal with four easy payments.

If I see Affirm on a site I usually lose any enthusiasm for buying anything from them. I want it even less in the context of " 'free' money to spend on stocks, no catch!". Affirm is just code for "we are here to part suckers from their money". I actually can't believe you can now finance used gear on Reverb through that firm. :lol: It's fucking hipster ebay. You don't even know if the item is going to show up for fucks sake. Just when you thought financing gear from places like Guitar Center was as stupid as it gets, they unveil financing options for used listings from private sellers.
 

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I got like $100 of AMC yesterday through CashApp just to watch it. But someone did make a good point of keeping it until the theaters reopen.
 

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Is Actually Recording
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I got like $100 of AMC yesterday through CashApp just to watch it. But someone did make a good point of keeping it until the theaters reopen.
AMC is currently trading around $15 a share, which is higher than it's been (before last week) any time before mid-2019, LONG before the pandemic. It was trading below $8 a share before the pandemic rattled the stock market. I would strongly recommend NOT holding until theaters reopen, and if you happen to catch a good bounce, selling it as soon as you can.

The stock price fell from maybe $35/share at the end of 2016, down to $8/share before the start of the pandemic, because there was some concern AMC as a company might not make it, even BEFORE the pandemic. If you want to buy shares to play a possible recovery, wait until this r/wsb thing is over and the share price is back in the $3-5 range again, and then buy.
 

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AMC is currently trading around $15 a share, which is higher than it's been (before last week) any time before mid-2019, LONG before the pandemic. It was trading below $8 a share before the pandemic rattled the stock market. I would strongly recommend NOT holding until theaters reopen, and if you happen to catch a good bounce, selling it as soon as you can.

The stock price fell from maybe $35/share at the end of 2016, down to $8/share before the start of the pandemic, because there was some concern AMC as a company might not make it, even BEFORE the pandemic. If you want to buy shares to play a possible recovery, wait until this r/wsb thing is over and the share price is back in the $3-5 range again, and then buy.
Ill probably end up selling sometime soon and then use my gains to buy more shares when everything cools down.
 
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