nrmitchi

60 ms·

601.
by nrmitchi 6y ago
You're right, I misread. My apologies.
602.
by nrmitchi 6y ago
Even if that is the case (which I don't disagree with you on) Robinhood has done, and continues to do, such a shitty job education it's users on what they're actually buying that they don't know this. So is this action R
603.
by nrmitchi 6y ago
IIRC this is a new thing in order to limit exposure to the positions above.
604.
by nrmitchi 6y ago
Being prevented from being able to buy a stock if the brokerage can not afford to legally sell it to you is the expected outcome. If you want to argue that Robinhood should have been bigger, and thus had more flexibility and been able to
605.
by nrmitchi 6y ago
They're also a joke because they are, as far as I'm concerned, not a "brokerage". They are an app designed to convince people that they understand how to trade stocks, in order to sell them stocks. A real brokerage shoul
606.
by nrmitchi 6y ago
Why do you think "hedge funds" are not? The small ones that were caught in a bad position at the beginning? Sure, they probably didn't. But most other funds, or trading desks, or market makers, or brokerages (etc) are most li
607.
by nrmitchi 6y ago
I don't think it's fair here to assume that by "retail investors" the SEC means all retail investors. Retail is not one giant group. It is possible for one group of retail (lets say the original WSBs crowd) to take ill
608.
by nrmitchi 6y ago
I believe this is actually an easy way that a true short squeeze can actually happen. A bunch of shares are shorted, and the company announces a vote on something , which causes people to recall shares that they've loaned out (because
609.
by nrmitchi 6y ago
Would you have preferred that if they were unable to take new buy orders, that they also prevented people who already owned from having the ability to sell it? While everyone else "sold ahead of them" and the users lost money &quo
610.
by nrmitchi 6y ago
> they don't seem to have focused on the important parts of being a brokerage. That's because they don't. The entire application and order flow seem designed to limit the amount of information given to the actual user, in
611.
by nrmitchi 6y ago
> The price dropped because there was no buying pressure Robinhood is not the entire market. I don't know what the exact number is, but I doubt they're even a material number of the entire stock market . If Robinhood is the
612.
by nrmitchi 6y ago
By this logic though, if you're already in a short squeeze, then the retail buyers (the ones who are doing the squeeze) not buying any more should not cause the price to drop: the person getting squoze (did I use that word right?) will
613.
by nrmitchi 6y ago
tldr; even if Robinhood does it's own clearing (which I'm not suggesting they don't) it's reasonable to not risk their business to support the current market. Does "the market can remain irrational longer than Robin
614.
by nrmitchi 6y ago
Yes, I am 100% assuming that Robinhood is acting is "good faith" (the fact that I'm defending Robinhood feels gross to me). If Robinhood just wanted to make money, they would have let this continue. People like to complain
615.
by nrmitchi 6y ago
If you know the risk, and can afford the loss, you can use a different platform, no? This action is likely (at least partially) targeted to prevent new users who have never traded a stock from trying to hop on the train and follow a "H
616.
by nrmitchi 6y ago
If they halted selling you know as well as I do that there would have been an immediate "Robinhood is holding my money hostage! They didn't let me sell and the price dropped, so they are responsible for my losses" lawsuit.
617.
by nrmitchi 6y ago
I'm just guessing here, but another thought is that since Robinhood apparently want to IPO in the near-mid term future, they would rather take the “bad press” now, than take it in a month when it’s “Gambling allowed on Robinhood ruin
618.
by nrmitchi 6y ago
> Why are you so quick to assume that people don’t know what they are doing? Screenshot lists floating around the internet yesterday pointing out exactly what buttons in your app to hit in order to buy GME options is the first piece of e
619.
by nrmitchi 6y ago
> Since Melvin shorted the stock, there's potentially no limit to their losses, This is the narrative going around, but is there any evidence that they had a completely un-hedged position? That they had absolutely no cover at all?
620.
by nrmitchi 6y ago
As opposed to just going some SPAC route that isn't a meme stock that could very well lose 95% of it's value in the next week/month? The approach may have been suggested for Dell/VMWare, but at the moment GME is a totall
621.
by nrmitchi 6y ago
> it may make more economic sense for some of those losers to declare bankruptcy instead. This is a thing that goes against the narrative here, where the narrative is "Melvin has $13B, we can take it all!". Even if you assume t
622.
by nrmitchi 6y ago
> Gambling through leveraged stocks should to be taxed more heavily to offset its cost. Something like the rate on lottery tickets. I agree with your initial point, but I don't believe this would actually help. People who are gambli
623.
by nrmitchi 6y ago
The world is an extremely complex place, and valuing things is extremely hard. There are way to many factors that contribute. The "correct" value will vary based on both factors in the world, as well as individual-specific factors
624.
by nrmitchi 6y ago
Why would anyone accept Gamestop stock as compensation for anything right now? Especially when they almost-definitely wouldn't be able to turn around and sell it right away.
625.
by nrmitchi 6y ago
I know this has been discussed elsewhere, and it's kind of against the narrative, but my understanding is that typically if you're shorting like this, you would hedge your potential losses by buying calls. Ie, if you short at $2
626.
by nrmitchi 6y ago
There's been a lot more of this in the last 8 months when it's been pretty difficult to actually lose in the stock market.
627.
by nrmitchi 6y ago
tldr; When your stop-loss is hit, it executes at the best price available at the time, which (as far as I know) has no guarantees. I think a good example of this is the Ethereum flash-crash on Coinbase in.... 2017? Something happened (IIR
628.
by nrmitchi 6y ago
I suspect that RH drastically limiting the information available to their users is all designed to limit analysis and make people feel more confident that they fully understand everything they are doing. People trade more when they feel mor
629.
by nrmitchi 6y ago
I'm not sure if you're actually expecting an answer here or just raging, but one reason that Gamestop (and many other stocks) have a fundamental value is because they pay out a dividend to the holder. For example, if the dividend
630.
by nrmitchi 6y ago
I'm not saying that your example isn't valid, but it's kind of different than what you are responding to. Your short position may have been called, but (I am assuming) you didn't take out a short position with an explici

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