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Investment Thread - For all your money needs

Liquid Karma said:
GME was still shorted at almost 140% after Melvin *allegedly* got out. The squeeze tomorrow was going to be biblical unless the brokerages put their thumb on the scale, which they did.

If you genuinely believe Robinhood did this out of some altruistic nature to protect retail investors from themselves, then you are a fucking moron. Robinhood literally makes money by selling real time trading data to institutional investors, and they saw that revenue spigot about to be upended and saved their own asses.

Why don't you calculate the delta on how long it takes you to go fuck yourself the rest of today?
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Who the fuck said RH did this for altruistic reasons. They did if for legal reasons. The same people pissed at RH for stopping Uncle Joe from using leverage to pile into a stock that was trading at 130x trailing 12 mos net income (net income that declined over 50% YoY) as of this morning, would normally be the same ones saying RH took advantage of Uncle Joe by letting him act like a dumb ass. GME, btw, has dropped from $483 to $132 in trading TODAY.

I mean are you shocked other people stepped in to short the stock after it traded to those insane multiples?
 
DeacMan said:
Bottom line -

Good for the folks who caught Melvin over-extended on a trade and punished them. They did nothing illegal.

Bad for the folks who are going to churn in that wake and get left holding the bag. Bad in the sense they are piling into a battle that is already over. Someone (s) is going to be run over here.

Longer term I do think this may really aid retail investors - hopefully changing some of the rules about where they have access to invest.
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Agree with this. And would add that those that think they are "sticking it to the man" by buying a shitty stock at a ridiculous price deserve to lose all of their money.
 
deacon14 said:
Why do you keep bringing up leverage? Robinhood has literally gone so far as to stop you from buying the stock at all. That's what the discussion is about, not about leverage
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Fine, remove the "leverage". Doesn't change the point. RH is doing this to protect their own ass legally. And, as said above, how much that hurts their business remains to be seen.

If you want to trade in a true permissionless manner, go swap crypto on a decentralized platform or use DeFi that way.
 
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DeacMan said:
Fine, remove the "leverage". Doesn't change the point. RH is doing this to protect their own ass legally. And, as said above, how much that hurts their business remains to be seen.

If you want to trade in a true permissionless manner, go swap crypto on a decentralized platform or use DeFi that way.
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I mean legal worries from people trading on leverage on this madness makes perfect sense to me, that's fine. I don't understand what legal concerns could arise from allowing someone to simply buy an overvalued stock. What do you sue Robinhood for? They didn't offer anything to you to allow you to buy that other than the platform.

It just seems like you are ignoring how RH's decision so obviously helps the people that still have short positions, which is none of the retail investors that are their consumers.
 
Is deacman as good at interpreting financial market movements as he is polling data?
 
deacon14 said:
I mean legal worries from people trading on leverage on this madness makes perfect sense to me, that's fine. I don't understand what legal concerns could arise from allowing someone to simply buy an overvalued stock. What do you sue Robinhood for? They didn't offer anything to you to allow you to buy that other than the platform.

It just seems like you are ignoring how RH's decision so obviously helps the people that still have short positions, which is none of the retail investors that are their consumers.
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If someone sinks all their savings into GME leverage is irrelevant. So yes, that's a real potential issue. Personally, I think you let the chips fall where they may and let people do dumb things. But leverage or no leverage people can get crushed and RH can face claims if that happens.

Can you short stock on RH normally? I don't know.

I'm focused on the choices RH is left to make as a legal entity. And, if your point is RH is sort of damned by closing down trading bc they are creating a scenario without a potential escape valve for anyone who has bought the top, yep, that too. They're left with nothing but Argo type choices from a risk perspective.
 
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One thing I love about all of this is that it falls under unintended consequences of just giving everyone stimulus checks that a lot of people view as free money.

The government sucks in so many ways.
 
DeacMan said:
I've already said I believe we need to open up access for the average Joe to invest more broadly.
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that was Robinhood's argument until suddenly it wasn't. kind of seems like the average Joe is outmatched here, why open up access?
 
whoops you edited that sentence out of your last post lol.
 
And GME is rallying again and I don't understand.

I can't get any work done... Just enjoying all of this too much.
 
 
so i have a stupid question: how exactly does the exchange restrict buying stock but allows selling it? who exactly is the buyer in the sale?
 
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