4 ms·
Slap on the wrist. Robinhood will be identified as a way to milk common folks money by the big players. So the big players will invest anyway, then it'll have e
by mola 5y ago
Slap on the wrist.
Robinhood will be identified as a way to milk common folks money by the big players.
So the big players will invest anyway, then it'll have enough influence in FINRA to avoid any consequential punishment when they'll fuck up the public finances.
- freshhawk 5y agoYeah, those are very big fines but there has been so much attention on this that we all know that 70 million is a small dent in the profits from the play that caused all this.
- matwood 5y agoRH is looking at a 40B+ valuation when they go public. 70M is a laughable fine.
- vkou 5y ago'Common folk' engaging in day trading are signing themselves up to be milked, regardless of which exchange they use. If you're one of those common folk, my best advice for you is to stop. If you want to invest, buy an index fund. If you want to gamble, go to a casino. If you want to gamble, while fooling yourself that you're investing, day-trade options, preferably in a meme stock.
- ClumsyPilot 5y ago" If you want to gamble, go to a casino." Yeah, I wouldnt go that far, daytrading reputable shares is still better than casino
- toomanybeersies 5y agoI put day trading in the same category as betting on horse races. There's punters who make good money on the horses, just like there's investors who make good money day trading, but most casual punts are little better than random guesswork.
- pessimizer 5y agoJust to expand on why horse racing is a little different: https://en.wikipedia.org/wiki/Parimutuel_betting https://en.wikipedia.org/wiki/Parimutuel_betting
- f2ostie 5y agoIt really isn't.
- fighterpilot 5y agoA single gamble in a liquid stock has an expected cost of 0.2%-1.0% of the notional value, due to crossing the bid-ask spread twice, which is smaller than casino margins. So it is better in terms of expected costs if we're comparing 1 daytrade gamble with 1 casino gamble.
- deleted 5y ago[deleted]
- FabHK 5y agoThe casino has negative expected returns (the house always wins). The market has positive expected returns, by and large. Better gamble there.
- pessimizer 5y agoOn the index, yes, but active picking should expect to lose to the market.
- rrdharan 5y agoYou can lose relative to the market but still come out positive, maybe even beating inflation. There’s still a lot more room there than the net negative expectation of a casino wager.
- bumblelad 5y agoI see posts like yours so often. They're ubiquitous. It's like saying 'you don't need anything more than Windows Home. Just leave everything on default, let Microsoft work for you! Everything else is worthless overcomplicated crap.' Meanwhile, the reality is that finance (much like any other industry) is filled to the brim with mediocrity, and even spending a cursory amount of time doing research would net a significant positive income flow. But people don't do it. They get discouraged when they find out the markets aren't 'fair', everyone has an 'edge', and they resign themselves into thinking that the best way to make money is to just give it away to one of the big players that made it all so unfair in the first place. They milk your money for all its worth and give you a pittance, but you remain content with yourself because this month you made 6% return on your 'investments'. The S&P went up, after all, and you, the intelligent market participant, were there to reap the benefits :^) Meanwhile, the 'intelligent' money that outwits you throws it all in Chinese Starbucks competitors that cook the books[1], speculative electric car companies that roll parts kits downhill[2], or leverages billion dollar funds 5:1 resulting in a magnificent $10bn implosion. [1]https://en.wikipedia.org/wiki/Luckin_Coffee https://en.wikipedia.org/wiki/Luckin_Coffee [2]https://arstechnica.com/cars/2020/09/nikola-admits-prototype-was-rolling-downhill-in-promotional-video/ https://arstechnica.com/cars/2020/09/nikola-admits-prototype... [3]https://www.cnbc.com/2021/04/27/ubs-nomura-push-global-banks-archegos-losses-over-10-billion.html https://www.cnbc.com/2021/04/27/ubs-nomura-push-global-banks...
- quickthrowman 5y ago> or leverages billion dollar funds 5:1 resulting in a magnificent $10bn implosion. You left out the best part: The $50B was used to bet on 90 Day Fiancé and Star Trek. Bill Hwang is a true degenerate gambler.
- jsemrau 5y agoMostly retail investors don't have the time to spend on following the markets. But I think they are missing out and only missing the right tools. FOMO is a problem for a lot of retail investors.
- chiph 5y agoThe big players won't invest in or buy Robinhood as the name is now tainted. They'll set up their own app-based retail broker [0] and market it to the same customer base. [0] Which ought to be super easy - pay some devs to write a new app front-end to their existing trading systems, but without a lot of complexity to it so it's easy to use by novices.
- JumpCrisscross 5y ago> the name is now tainted Robinhood’s user growth is surging. To the target market, brokerage customers who respond to good UI more than trading needs, it’s apparently not a problem. That target market is demonstrably unusually profitable.
- matwood 5y agoIt's not even a slap on the wrist, and sends the message that what RH did here was fine.