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by kjksf 2157 days ago
That doesn't negate his point (that RobinHood can fill your order just as well, or better, than eTrade or Fidelity).

If you're trying to out-hedge hedge funds then the only way to win is to not play.

You can (and should) use stop limit prices to guarantee a desirable price in which case there's nothing a hedge fund can do to bump you.

And if you're sensitive to 0.1% differential in price then you're trading, not investing.

2 comments

> use stop limit prices to guarantee a desirable price in which case there's nothing a hedge fund can do to bump you

This is VERY misleading - not sure if you just worded it poorly or if you believe this - but a stop limit is NOT a guarantee that your stock will be sold.

Someone has to take the other side of that trade for it to fill. If there's no one there to take the trade - which is common when the price moves quickly - it will not execute.

> That doesn't negate his point (that RobinHood can fill your order just as well, or better, than eTrade or Fidelity)

That may be right, but "better" order filling or any other bells and whistles will not help to beat the market or gain substantial benefits from it in the long run. I've seen traders sending orders in slow command line and making substantial returns, so the tool perhaps is not the instrument for success on the market in the long run. It's like saying that green car will drive you faster/safer/etc compared to black or white cars, while the most important contribution to speed and safety lies between steering wheel and driver's seat.

> You can (and should) use stop limit prices to guarantee a desirable price in which case there's nothing a hedge fund can do to bump you

Needless to say orders may not (and most certainly will not) be filled when market (or HF) make sharp moves.