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by jkqwzsoo 2743 days ago
The people in r/wallstreetbets usually understand that they're making stupid bets. OTOH, r/Robinhood is full of completely irresponsible traders -- trading in illiquid securities, dumping tons of money in penny stocks, triggering PDT restrictions and getting stuck with unwanted positions, not understanding bid/ask/mark (usually blaming RH or the "market maker" boogeyman for changing the price on them), buying OTM weekly options (known informally on wallstreetbets as "FD"s...), complaining about tons of "glitches" that are actually just them losing money through ignorance, and (one that has always confused me) blaming all losses on some mysterious "market maker" boogeyman who kills all of their trades.

If it was 1996, these people would be speculating on Beanie Baby portfolios hedged with Charizard cards.
2 comments
rootusrootus 2743 days ago
To be fair, RH does sometimes have problems. They blew up the other morning and screwed over a number of people by closing their accounts for the day while they tried to figure out how their system credited them with options sales at 10-100x actual value. RH has definitely got bugs, and if I were serious about playing the market I'd go with IB or TW, or just about anyone else.
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theartfuldodger 2741 days ago
That number of people is quite large. Between FB groups, reddit and Twitter comments it definitely exceeds the hundreds.

I was locked out for 29 hours with expiring strangles that would have had significant upside if closed at the right time, lost everything put into them by the time I could get back in.

Never received communication about the lock out or being allowed back in.

They have no phone support and during that whole period not a single email was responded to.

To imagine this company as a bank is one of the most ridiculous concepts ive heard of.

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Apocryphon 2743 days ago
Given the millennial user base, they probably were.
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Derek_MK 2743 days ago
Eh, they're actually going for both millenials and younger. A lot of their advertising is in YouTube ads and YouTube podcasts, which is definitely aimed at a younger audience than millenials.
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