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Yes, they are forced to sell and other robinhood users could not buy. It means they allowed selling and restricted buying that will eventually make stock goes d

Yes, they are forced to sell and other robinhood users could not buy. It means they allowed selling and restricted buying that will eventually make stock goes down because no other person even if they want to can't buy.

egwor 6y ago
So the market price which is made from all transactions from all brokers will drop because robinhood users could not buy. That makes no sense to me. If they really wanted to buy they could use another broker? If the market really is dropping then tough luck. You can lose all your money investing in the stock market. If you're leveraged you can lose even more (which might explain why some accounts were closed).
- sdan 6y ago
  As I said, stocks are inherently risky and should not open positions thinking you’ll strike it rich overnight; what I am saying is that robinhood swiftly stopped retail price action ( because most retail volume is from RH) which caused the price to plummet. Volume for amc and gme also got split for the day yesterday compared to Tuesday (which can be blamed because other brokers also eventually stopped trading these stocks later in the day).
- KptMarchewa 6y ago
  >That makes no sense to me. If they really wanted to buy they could use another broker? That's assuming you have multiple accounts in brokerages, and multiple other ones also have blocked buys (for example Interactive Brokers). Market will be dropping if significant number of people who want to buy are unable due to third party actions, that's exactly what's market manipulation.
- smileybarry 6y ago
  Robinhood, apart from holding a big chunk of the market, were not the only brokers freezing buys on GME, AMC and others -- Trading 212, eToro, CashApp, and more I forgot by now froze it as well. Your only options were "non-app" brokers, like a bank stock portfolio, which no one could really open on the same day.
- T0Bi 6y ago
  It takes days to get approved with another broker and transfer money there. As we saw, the damage was already done. Most retail investors only use Robinhood, why have 2 different brokers?
  - MrMan 6y ago
    why have 2 different brokers? Days like this are exactly why you should always have more than one bank and more than one broker !
- codesternews 6y ago
  I think you are naive and don’t know what’s happening. GME is emotional and hype play. They got so much coverage and all the retail people were driving prices up have robinhood platform. You cannot open the account within same day even if people wantto buy. Robinhood played with people physchology. After seeing the price drop everyone wanted take profits out because even if people want to buy they couldnot. It was logical short squeeze which could drive price of GME significantly up but due robinhood manipulation it stopped.
  - PartiallyTyped 6y ago
    Except people didn't take profits, WSB saw right through it, they/we urged everyone to hold, remove stop losses, and buy with cash/not margin. The people held and the volume was low.
  - egwor 6y ago
    > Robinhood played with people phschology I disagree. They've offer a way to trade like other platforms. Other platforms did the same thing and blocked trading. The question you need to be asking is why did they ALL block trading? They're competitors to each other, so why did they make the same decision? Remember that these firms make money on every trade done. They want to take your trades. BUT they have to manage risk. They lose money if the client can't pay. They're there to facilitate but they are taking risk themselves if they provide leverage. They, like banks providing mortgages have to have limits set. If would be unprofessional and irrational to do otherwise. These firms are there to make money in a highly competitive environment. They are professionally run to ensure that they stay in business. The comments here are of the theme 'RH has screwed us to make money'. No, what they've most likely done is made a decision to take no more risk to ensure that they remain in business. EVERYONE is speculating though. If that's the case these arguments that the clients are somehow being screwed over is really unfair and shows a lack of understanding. Clients need to understand the risks of what they're doing, and need to understand the risks associated with executing via one broker. It's a professional environment and drive by retail unfortunately are mostly unaware of the true risks. Examples: 1. Traders have multiple brokers to trade via because there are technical issues 2. If something is too good to be true, it probably is. 3. If you're betting against some professionals, you need to ask what they know that you don't. Why are they comfortable taking on the risk. The professionals will try very hard not to be emotional and have more info that a retail customer will. 4. The retail investor need to understand the business model of the brokers. Why are they in business and what are their limits? I see the real problem here is that it is easy to put a trade on. It is difficult to know how to risk manage it and understand the risks. This squeeze has identified a limit in the market that wasn't considered.

egwor 6y ago

So the market price which is made from all transactions from all brokers will drop because robinhood users could not buy. That makes no sense to me. If they really wanted to buy they could use another broker? If the market really is dropping then tough luck. You can lose all your money investing in the stock market. If you're leveraged you can lose even more (which might explain why some accounts were closed).

sdan 6y ago
As I said, stocks are inherently risky and should not open positions thinking you’ll strike it rich overnight; what I am saying is that robinhood swiftly stopped retail price action ( because most retail volume is from RH) which caused the price to plummet. Volume for amc and gme also got split for the day yesterday compared to Tuesday (which can be blamed because other brokers also eventually stopped trading these stocks later in the day).
KptMarchewa 6y ago
>That makes no sense to me. If they really wanted to buy they could use another broker? That's assuming you have multiple accounts in brokerages, and multiple other ones also have blocked buys (for example Interactive Brokers). Market will be dropping if significant number of people who want to buy are unable due to third party actions, that's exactly what's market manipulation.
smileybarry 6y ago
Robinhood, apart from holding a big chunk of the market, were not the only brokers freezing buys on GME, AMC and others -- Trading 212, eToro, CashApp, and more I forgot by now froze it as well. Your only options were "non-app" brokers, like a bank stock portfolio, which no one could really open on the same day.
T0Bi 6y ago
It takes days to get approved with another broker and transfer money there. As we saw, the damage was already done. Most retail investors only use Robinhood, why have 2 different brokers?
- MrMan 6y ago
  why have 2 different brokers? Days like this are exactly why you should always have more than one bank and more than one broker !
codesternews 6y ago
I think you are naive and don’t know what’s happening. GME is emotional and hype play. They got so much coverage and all the retail people were driving prices up have robinhood platform. You cannot open the account within same day even if people wantto buy. Robinhood played with people physchology. After seeing the price drop everyone wanted take profits out because even if people want to buy they couldnot. It was logical short squeeze which could drive price of GME significantly up but due robinhood manipulation it stopped.
- PartiallyTyped 6y ago
  Except people didn't take profits, WSB saw right through it, they/we urged everyone to hold, remove stop losses, and buy with cash/not margin. The people held and the volume was low.
- egwor 6y ago
  > Robinhood played with people phschology I disagree. They've offer a way to trade like other platforms. Other platforms did the same thing and blocked trading. The question you need to be asking is why did they ALL block trading? They're competitors to each other, so why did they make the same decision? Remember that these firms make money on every trade done. They want to take your trades. BUT they have to manage risk. They lose money if the client can't pay. They're there to facilitate but they are taking risk themselves if they provide leverage. They, like banks providing mortgages have to have limits set. If would be unprofessional and irrational to do otherwise. These firms are there to make money in a highly competitive environment. They are professionally run to ensure that they stay in business. The comments here are of the theme 'RH has screwed us to make money'. No, what they've most likely done is made a decision to take no more risk to ensure that they remain in business. EVERYONE is speculating though. If that's the case these arguments that the clients are somehow being screwed over is really unfair and shows a lack of understanding. Clients need to understand the risks of what they're doing, and need to understand the risks associated with executing via one broker. It's a professional environment and drive by retail unfortunately are mostly unaware of the true risks. Examples: 1. Traders have multiple brokers to trade via because there are technical issues 2. If something is too good to be true, it probably is. 3. If you're betting against some professionals, you need to ask what they know that you don't. Why are they comfortable taking on the risk. The professionals will try very hard not to be emotional and have more info that a retail customer will. 4. The retail investor need to understand the business model of the brokers. Why are they in business and what are their limits? I see the real problem here is that it is easy to put a trade on. It is difficult to know how to risk manage it and understand the risks. This squeeze has identified a limit in the market that wasn't considered.