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Yes, but... they're both wrong. The trades that Robinhood blocked were objectively bad trades, and the people they stopped from buying would almost certainly h
by newacct583 6y ago
Yes, but... they're both wrong. The trades that Robinhood blocked were objectively bad trades, and the people they stopped from buying would almost certainly have lost all that money.
Now, I agree that there's a good first principles argument (and also a bad populist one) that people should be allowed to trade their own money into scams if they want. But the idea of proving damages here based on the idea that GME was going to CONTINUE TO GO UP after a 500% increase triggered by a short squeeze is just insane, sorry.
- brentm 6y ago"The trades that Robinhood blocked were objectively bad trades" Seriously? Do you want brokers making this call? That is not their job. Let people learn the hard way, that is what the markets are for. Now, don't let them do it on margin but if you're going to plow your savings into GME at $450 a share then I am sorry but it's your own fault for not doing any homework at all.
- ne0flex 6y agoI agree that this is how it should be, but then we'll inevitably end up with a bunch morons who lost their money and then demand the government to right them. It's a lose-lose situation.
- s_dev 6y ago"This is Wall-street Dr. Burry, if you offer us free money, we're going to take it" The notion that an exchange would protect a trader from trades is laughably absurd.
- adoxyz 6y agoThis is a bad take. There's millions of bad trades you can make. Should Robinhood block all of those as well?
- N1H1L 6y agoAlso how do you quantify a bad trade? How much lost money? I trade on Robinhood too (not GME though), and just two weeks back I lost money on Nio stock. Is that a bad trade? Should Robinhood have stopped me from buying that stock?
- snarf21 6y agoWhat about the people that already bought through Robinhood and were trying to double down to maintain their position? Those people are being made to lose money too.
- nemothekid 6y agoThis case is not about lost damages and I doubt that is the motivation for someone like AOC getting involved. The narrative surrounding this whole thing has become the little guys have pulled one over the hedge funds and now the wall street is changing the rules. The bad trade that was done here was when GME was shorted to 140%, and now that retail has made a win, everything is being done to save the shorts. All this is highlighting for many more people in how the "game is rigged".
- divs1210 6y agoGlad to know bad trades are illegal now. /s