Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by psychlops on Thursday January 28, 2021 @09:35AM (#25942293)

No, I don't like seeing winners and losers in the market. I like to see winners, it's not a zero sum game.

There are no divisions on this board, everyone is against the Power that is being exhibited right now. TD, Interactive Brokers and Robinhood have bent the knee to enrich the rich at the expense of many.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by unityByFreedom on Thursday January 28, 2021 @09:44AM (#25942432)

People do like other people's drama. It reminds them they're not the only ones with troubles. As for zero sum, of course it's not, the market grows over time, but there def are winners and losers when you look at events up close.

Bending the knee is not right, there must be some sanity in the market. They're trying to protect mom and dad from losing their shirts.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by psychlops on Thursday January 28, 2021 @10:22AM (#25943142)

Sanity is a relative term depending on which side of the trade one is on. Moms and Dads (if any were in GME) will lose money and make money, they are directing who will be losing.

I'm happy to change my phrase, what would you call it when brokerages unilaterally help their market makers by changing trading terms to ones that favor one side. Halting trading is usually done by an exchange.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by unityByFreedom on Thursday January 28, 2021 @09:05PM (#25952703)

Here [1], see also [2]

> Market makers have no interest in owning the stock. They have no interest in being long or short. They're like a furniture or electronics store. They match buyers and sellers, and for this, they make a slim profit margin. This profit margin is known as the spread. The reason they make a profit is because risk is involved. If they sell stock to you, but the price is so volatile that it moves up and up before they can find a buyer and equal out their book, they can lose a lot of money, and they can lose it fast.

> This is why discount brokers (Robinhood, Cashapp, Webull, etc...) have stopped allowing people to buy GME, and AMC, among others. They can't find a market maker to take your order. It sucks because retail made a lot of dumb moves, and bought a lot of shares they shouldn't have bought, and they're going to lose a ton of money, but it's not a conspiracy. [1]

[1] https://www.reddit.com/r/neoliberal/comments/l6qhhg/discussi...

[2] https://www.reddit.com/r/neoliberal/comments/l7bo3r/the_game...

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by MrMan on Thursday January 28, 2021 @11:14AM (#25944148)

Day trading will likely lose a lot of people a lot of money. It's absolutely a zero sum game and for the vast majority, a negative-sum game.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by scruple on Thursday January 28, 2021 @09:42AM (#25942406)

And all of it under the guise of "protecting the little guy."

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by unityByFreedom on Thursday January 28, 2021 @09:45AM (#25942447)

Why do you think it's a guise to stop buys on a ridiculous valuation? You can still sell.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by wizzwizz4 on Thursday January 28, 2021 @10:06AM (#25942847)

By that logic, nobody should be allowed to buy and sell Bitcoin, because there's no way a currency with such a low GDP can be worth that much.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by scruple on Thursday January 28, 2021 @01:02PM (#25945930)

I can walk into any gas station in the country and blow as much money as I care to on lottery tickets. I can drive to Las Vegas and walk into a casino and do practically anything I want with my money. This is America and retail investors are (hopefully) all legal age and are participating of their own free will.

Hedge funds have treated the stock market like their own personal casino for decades. When the house starts to lose at their own game, due to their own greed, it's suddenly a problem?

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by unityByFreedom on Thursday January 28, 2021 @05:05PM (#25950066)

Casino is right but you can't easily get to one. They're highly regulated and not everywhere for a reason, which is they make masses poor and are generally bad for the economy. Great you get tax money but you've destroyed people's lives to do it and people are a country's most valuable asset.

Don't know what you're on about the house losing here. Brokers make a killing on any trade action. Heavy retail day trading inevitably falters and ends up creating tons of poor while money flows into the pockets of a few. See: the year 2000.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by cbozeman on Thursday January 28, 2021 @11:41AM (#25944547)

I can't remember the movie. Can't even remember the actor, but...

"What. the fuck. are you talking about?!"

Tesla's price-to-earnings ratio is 1660.

Why didn't TSLA buying get shut down? OH yeah, because a shitload of institutional investors have shares.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by unityByFreedom on Thursday January 28, 2021 @05:08PM (#25950105)

B/c TSLA shenanigans all occurred under a completely corrupted admin whose agencies will need time to rebuild. Can't believe I need to write that. It's no secret a con man was at the helm.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by goatinaboat on Thursday January 28, 2021 @09:52AM (#25942578)

I like to see winners, it's not a zero sum game

Short selling absolutely is a zero sum game.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by unityByFreedom on Thursday January 28, 2021 @09:55AM (#25942633)

Eh, there's an argument to be made that maintaining a healthy market with longs and shorts produces more value in the long term. Generally I disagree with gp tho b/c people love drama even if it isn't 100 to zero.

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