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A comment on Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop. Parent comment

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by jacobsenscott on Thursday January 28, 2021 @12:19PM (#25945130)
Only a small fraction of RH's customers bought into the fantasy they are fighting some kind of revolution against hedge funds (or that 'the smoking man' paid them a visit in the night...). The vast majority don't care about any of these stocks. Also, by making trading so easy RH has a responsibility to protect amateur investors from making terrible financial decisions. If you really want to buy game stop stock or whatever there are plenty of ways to do so. So they are by no means "screwing" their customers.
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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by colonwqbang on Thursday January 28, 2021 @12:36PM (#25945391)
> Also, by making trading so easy RH has a responsibility to protect amateur investors from making terrible financial decisions.

I strongly disagree with this. Nobody can know beforehand what is a good investment or not. The omnipresent disclaimer applies: "All investments involve risks, including the possible loss of capital."

The idea that the professionals know something that the rest of us don't, is quite controversial and there are many articles giving evidence to the contrary.

https://www.researchgate.net/publication/234025489_The_Activ...

This idea is also quite condescending (my own opinion, no references given).

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by imtringued on Thursday January 28, 2021 @01:36PM (#25946644)
>The vast majority don't care about any of these stocks.

Are you crazy? Robinhood just sent a message to retail investors (it's entire customerbase) that they are going to crush you at any given time. By using Robinhood your are exposing yourself to extreme risk of losing your investments no matter what stock you trade.

>Also, by making trading so easy RH has a responsibility to protect amateur investors from making terrible financial decisions.

WSB is about making terrible financial decisions as a sport. That's the entire point.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by always_left on Thursday January 28, 2021 @12:32PM (#25945325)
Protecting them is one thing, but ceasing all buys before the market opens and without warning is irresponsible.
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