35 Burst results for "robinhood"
"robinhood" Discussed on How I Built This
"Observation that as you made which convinced us to get into business together was that a lotta. These firms are building their software on microsoft windows and you know pricing signal would go through ten or twenty machines by the time it actually resulted in an order and all of this took tens of milliseconds and so we kind of chatted about it and we were like imagine instead of a windows machine. You just built on. Lennox wrote in and see which was a low level language rather than java had everything on one box rather than ten boxes and ping pong order information between them before getting sent out to the exchange of everything was on one box. You could maybe shave that latency down from ten milliseconds down to one millisecond or so and you could have a competitive system to so beige was basically saying to you. Hey this thing is happening right now. There's this thing happening except it's not actually that efficient and i actually think there's an opportunity to make something more efficient to make like like what like software that you could sell to to financial firms essentially. Yes in the first idea. Was you know we could potentially use it ourselves to do our own trading but we ended up pretty quickly realizing that we just didn't have the resources to both build the software and build trading algorithms on top in the cash to do it. Yeah exactly and money was reasonably tight back then rate so there weren't a ton of options so at this point i guess you decide to pull out of of the phd program and you beige. You leave california and good new york. Yeah because i mean obviously new york is senator of the financial world in you. I guess you went there. I just be clear you went there to try and build a like a trading software that you could sell to financial firms. That's right yeah got it and what what did you like. Did you guys go share like an apartment did you. Did you get an apartment together. We did a couple of friends and contacts. Let us squad at their houses for a bit. We ended up eventually settling down in in the east village. Great and was it. I mean just to. Just this is not a i mean. It's sort of a business idea. But you're not like going out and raising money idea was the two of you would basically build this piece of software using your own knowledge. I mean both of you had knowledge on had that's after coded and and created. Yeah well actually. Essentially what we did was we looked at the. Api's that were published online. For how the exchanges distribute market data which are stock price. Its stock price information. And there's sample data that they offer online they'll have like one day's worth of data from two thousand and nine or something. This is one day's worth of trading data. Yeah and you can use that just to validate that. The system works properly and processes the messages. So we we use that. That's all freely available curious. I mean there's a whole book by michael lewis called flash boys kind of about this period that you you both moved to new york and start working on the because it really. His book is about this phenomenon. These these high frequency traders many of them many them coming at a phd programs yup and working to create ways to you. Know to speed up trades by milliseconds like ten milliseconds. The famous during a book about somebody paid hundred million dollars for fiber optic cable from chicago to to to to new jersey. Now that was a very famous thing at the time we were in new york so before that there was a variety line which you know about twelve or thirteen milliseconds to get information from chicago to new york and then i think it was jim. Barksdale of netscape who created spread networks and the was to dig a straight ditch between chicago and new york is straight as possible. Put a cable down there and compete with the verizon line and people who knew about that line were able to get on that line. They had latency advantage a speed advantage over people that were not milliseconds by by several milliseconds which is huge rent. Did it feel like there was a kind of a almost a gold rush of people like you in beijing like smart graduate school dropouts or other physics. Maths graduates prejudice. Who are coming to new york. Who who sort of intuitively understood. The opportunity was it was like a a mad dash to new york. Yeah i think. I think there was definitely some form of gold rush. There weren't a lot of people. Like i think we were. We were probably among the youngest but you had people leaving the big trading houses starting their own smaller trading firms. And you had some people that typically you know you'd have the phd graduates would partner with someone from the trading side so yeah there was There was definitely a community around algorithms trading in new york city. At the time. I mean it sounds like beige you understood and then explain to you and you began to understand that. There was a lot of money to be made because of your knowledge and your background. The two of you could actually really do well. Yeah i think that to some degree. It was still a little bit hazy in terms of the aftermath of the financial crisis. But i think he was prescient in the sense of trading. The old way was completely gone right. The that were on the floor of the new york stock exchange trading on. Pda's were going to disappear eventually. And all of the action is going to move to data centers. And i think two thousand eight had really been the turning point where you're just not competitive as a trading desk driven by by actual humans and everything was gonna turn completely automated algorithm iq. So if i met you because you're a young guy you're like what twenty twenty three twenty four. Maybe i would have been. Yeah twenty twenty. Two twenty three if i met you in new york in in two thousand and ten and a k a guy and you have so what do you do. Tell me what you're doing. What are you. And i knew nothing about the financial what would you. How would you describe what you were doing. I probably would have said you know. We're we're making trading technology extremely fast low latency trading technology for algorithm trading and how we can execute a trade for ten microseconds or under ten microseconds take to trade. That's kind of the industry term tick to trade and if you knew anything about the industry that would kind of blow your mind now. I'm not saying i would have said this. But maybe when i was twenty two or twenty three and i met you and you told me that i would said man that that's horrible. Here's making the sharks and vampire whatever bats or whatever they're called Richer would've matt matt taibbi. Call them the giant sucking vampire octopus. I can't remember years squid grids. Yeah you're you're just making these guys richer. what are you doing. This is horrible. This is horrible. you should be like. She'd be like biting the power. Did anybody ever say that to you. Yeah we heard that a little bit for sure and you were just like. Oh that's just..
Stock trading app company Robinhood files plan to go public
"Trading at Robin Hood is planning to go public later this year. The company's at the center of a fight between online activist investors and institutional investors over companies such as Gamestop and AMC Entertainment. Robin Hood is under congressional investigation after restricting trading of those companies earlier in the year. The APP allows users to by fractions of a share in a
Robinhood files confidential paperwork to go public
"Accompany popular with entry level. Investors has filed the confidential paperwork with regulators to eventually sell its own stock to the public. No word yet on one robin hood. Ipo would happen. When individual investors guided by threads on the online message board read. It started a frenzied buying game. Stop shares this year. Many bought their game. Stop using the robin hood app for free. But if it's free robinhood make it's money and what a risk for those who might consider buying eventual robinhood stocks
Robinhood chooses the Nasdaq for its IPO, sources say
"Stock trading up robin hood plans to file for confidential. Ipo as early as this month bloomberg previously reported the company may offer some shares to its users at its ipo price. Although no timing on an ipo has been finalized
Robinhood Reportedly Plans for IPO
"Bloomberg sources say the stock trading up robinhood plans to file for a confidential. Ipo as early as this month bloomberg previously reported the company may offer some shares to its users at its ipo price. Although timing unin ipo has been finalized
Elizabeth Holmes denies destroying evidence in Theranos case
"There is a new development in the theranos elizabeth holmes case it came late last night and attorneys for homes accused the government of losing a database that contained three years worth of accuracy and failure rates. If there are knows tests prosecutors alleged that theranos executives destroyed that database because it proved that the blood testing private product was inaccurate. This argument over testing evidence will be argued out before a judge next month and that will set the stage for homes as much awaited trial which is set to begin in july. This is really kinda complicated but the government the prosecutors say that they asked for this information they were given a backup drive that their executives gave them the drive. They forgot the password that they had sat on it They say that they are knows. People forgot the password that was set on it. They asked for this back in two thousand and eighteen. And i think three months later the main the main computer system the the database was destroyed after that they say it was done intentionally the prosecutors say that they have email evidence that shows that this was done intentionally but this is going to be just another step and incredibly compelling argument that we've watched back and forth.
Robinhood and Reddit in the spotlight during GameStop congressional hearing
"The CEOs of Robin Hood's Citadel and read it are going to be on Capitol Hill today. To answer the for the massive swings and MIM stocks before the House Financial Services Committee. New York Democrat Gregory Meeks sits on the panel. He tells Bloomberg. He wants to know if retail investors were taken advantage of Basically that you know, the name of the subcommittee that's in charge is invested protection. Make sure that the average everyday investor is protect that hearing gets under way at noon. Wall Street Time stay with Bloomberg Radio for
Robinhood-GameStop hearing will scrutinize how brokerages get paid for trades
"Game stop hearing on capitol hill stock market versus casino and news from down under leading. Today's news grab the popcorn. Robin hoods vlad. Tentative melvin capitals. Gay plotkin rutted steve. Huffman and citadels kenneth griffin and keith. Gill are also to testify. Before the house financial services committee at twelve pm eastern lawmakers will get their chance to grill the executives and hearing focused on short selling online trading platforms gamification and their systemic impact and our capital markets and retail investors. Also making an appearance is read it trading star known as warring kitty who is credited with helping start the game stop mania though his actions are being pro by massachusetts regulators since he was a registered securities broker an army of day traders following wall street bets the red at forum dedicated to quote making money and being amused while doing it up ended some market dynamics last month by taking aim at some heavily shorted stocks they ran them up as a group triggering short-squeezes and causing some hedge funds like melvin capital to record billions of dollars in losses. The party came to an end after brokerages restricted trading on stocks like game. Stop an amc entertainment. Though robin hood took the most flak due to its communication about the events and delay and taking curbs off of a meme trading
Stimulus prospects could boost the stock market and interest rates in the week ahead
"A four-day trading week we'll see investors tackle the question of how inflation and rising interest rates could come into play this year. Stimulus legislation nears in dc citadel founder ken griffin robinhood ceo and executives from melvin capital are scheduled to testify in a house hearing on the wild market swings in shares of game stop and other heavily shorted stocks
OA463: Why Cases Against Robinhood Will Fail
"From a podcast. Callow unwelcomed opening arguments. This is episode. Four hundred and sixty three. I'm thomas that's andrew. How you doing sir. I am doing fantastic thomas. how're you. I am just overwhelmed by how much we have to talk about today at all in reasonable fashion. Let's find out. There's so many bullet points. We got morgan coming onto explain game. Stop. we've been waiting for this for what two weeks can't wait. Yeah and then. A possible wildcard segment. That was able to get to. So i think we'd better just get right to it. What do you think absolutely down to bring him down. Law down down right
Gamestop and the future of the stock market
"Game stop became this populist uprising that went across the political spectrum what i learned from the game. Stop mania was that. There's a lot of anger and resentment in america towards the wall street elites and people thought it was just awesome that these really rich fat cats were whining that they were losing billions to ordinary investors. And that's cool but the thing about investing is that there's been a separation in people's minds between the real value of accompany the value of its stock. You know the thing that got set off on it and when my fifteen year old son every day gives me a report on what's going on on the red at boards and what they're saying about this company or that when what they're saying about silver whatever it is and it's this Investing by kind of an ad hoc committee the problem. I have for you and your wallet is if you're just playing with some money that's fine but if you're putting money that you actually are going to need to live on or for your long term financial security know that what's involved in what's being posted on. Reddit are not real investing strategies. I mean you are investing but you're really more engaging in speculation or gambling and it's cool when it works but what happens when a company ends up way beyond its actual real value is there are people who on the roller coaster ride up if they buy it the right exact second sell at the right exact second. They're doing awesome but the people who bought from them when the roller coaster takes scary ride back down. They're the ones who get their wallets cleaned out. And i think that this reminds me a lot of something that happened to generation ago before many people that are investing robinhood. Were even alive. Or we're just young babes and diapers. Hopefully their parents buying generic diapers instead of brand name but whatever that we went through something called the dot com crash where values ninety eight and ninety nine went through the roof for companies that had never made a penny and the more money. They lost the higher their stocks went up and they were all what are known as story stocks and the way those stories ended. They weren't like bedtime stories with happy endings. They were really ugly with companies lost huge amounts of investors money in the billions and what was similar to. What's been going on lately with trades in stocks of unloved companies. Suddenly go way up and then take their right back down. What was consistent. Then that is again happening now. Is that overwhelmingly. The people that were doing this were investors that were smaller. Investors and in cases were borrowing money that they couldn't afford to lose one of the things that's been going on this time also happened in ninety eight ninety nine and that is that people were borrowing on what's knows margin in order to place bigger positions and then when a stock starts its fall. You get hit with a margin call which is where you have to pay off your loan. Basically in a nanosecond. If you don't have the money your whole position is sold out and wiped out so this is something that is not for the faint of heart because as we saw back when the ninety eight ninety nine mania ended in two thousand. We had a massive decline in the stock market. That took many many many years to recover from there are conditions today that somewhat mirror that and so think about investing is something you're doing for a long time or a lifetime not for today's hot stock hot precious metal. Whatever it is if you have money that's your play money. You want to play these games. Go for it on the other hand. If it's money you really really gotta have. This is too hot to handle and you'll get burned bad in the kitchen and krista. You're with me in way back in nineteen ninety nine. I was a song also right And was more salvatori than what what happened with with the stock market it was. It was really something that that people that were financial analysts. Just were shaking their heads. They couldn't understand how these stocks back. Then we're going up and up and up and up which they did until they didn't and when the airline out of the balloon it was fast you know we. We talked about our fifteen year. Old sons When you talked about this on another episode. But i'll have to give you an update. That mind. got his dad to buy him. He gave his dad some cash. And got him to buy a stock. That was another speculative one from read it that he had seen and he is now lost like seventy percent of the money. He gave us that. So i think it was a really good lesson for him. Only a good lesson if people don't just go away and say investing is not for them. Yeah no he's still thinks he's pretty smart. You do have a very smart son. The thing is i. Don't want people if they get burned through this wave of red and aspire mania To not turn away from investing. Say that it's just not worth it. It's too risky. Whatever that's why you have to think widely diversified and term not a single stock. That you're gonna own hours or days. And i know the i've said it again and again i am the dullest human being alive and see. You're nodding your head is incorrect. It is true. Oh no. I'm extremely dull and my philosophies about investing or extremely dull and so i want you to have financial security and you know what if people are having fun getting animated and talking to each other about this trading symbol or that one or whatever. And what's going to happen with this one or that one. No that i would be the person that would put you to sleep talking about how you build. A portfolio with index funds or in a retirement account with the target retirement fund. Because what i'm about you ending up with a real financial wealth real financial security over time. Not the quick
Hedge Fund Makes Millions on GameStop
"Turning to washington and the latest on the game stop frenzy treasury secretary. Janet yellen is said to meet with top regulators. Today to discuss the many issues that have emerged. This initial meeting will include officials from the sec and the fed according to former officials and analysts. The discussion is unlikely to reach any conclusions on whether the activity points to risks to financial stability or the need for regulatory changes. It wasn't just individual investors making a lot of money on game stops rally in a wall street journal exclusive world reporting one hedge fund in particular made a profit of nearly seven hundred million dollars joining me now with more on how this came to be as markets reporter caitlin ostrov. She is in london. Good morning caitlin. Wanting mark caitlyn so much of the movement upward has been propelled by day traders but some hedge fund managers actually bet on the stock rising. Yeah so you've had this narrative of on forms like it's wall street bets that come about of you know all of the little guys of the day traders kind of taking on these hedge funds better holistically betting that stocks like games talk will wind up falling but not everything has always as clear. Cut in black and white in some hedge. Funds also took this contrarian view that may be the market was being a little too beating up on games talk and so you actually had one hedge fund some best which actually started at on of games top. You know at the end of last year. September october and turned into profit of nearly seven hundred million for them because they start buying wind chairs were close to ten dollars and they sold when they were close to four hundred and caitlyn. We've seen a lot of volatility with game stock and others. What has been like this week. Yes performance for a lot of the so-called robinhood stocks the stocks that are very heavily favored by day traders We've been less strong moves this week than we did last week. you know. We had shares of games. Top shooting up over one hundred percent in a single day and now trading is a little bit more rangebound between you know maybe five and twenty percent that is obviously still vividly high volatility. But it does show that maybe some of this valley is losing a little bit of steam or a little bit of momentum ceylan ostrov thanks for joining us. Thanks for having me
Robinhood to allow buying fractional shares of GameStop, AMC
"But we start off with game stopped or game on check. Today's price action on wall. Street's hottest stock maybe one out of stock game. Stop gaining more than two percent while other heavily shorter names like costs. Amc and blackberry also posted gains robinhood easing trading restrictions today allowing users to buy fractional shares in game stop and amc but these socks are still down big for the week. So what is the current state of this read rebellion that has captured wall street's attention let's bring him back bassani so we got a couple of big questions for you number one here. Can we actually say that. The rebellion is over based on what we've seen over the past couple of days when we know that restrictions have still been in place on trading the stock. I found a the main is over. But it's found a level and. I think it's subsided. I mean just look at the the volatility today remarkably low and i know you mentioned restrictions but what restrictions there's someone robin hood but trade. It almost fifty million shares. I mean heck of a lot of people are trading robin woodstock. It's not a bunch of russian sitting out there so there's very few restrictions out there and i don't think that's a big inhibition for the stock right now has short interest. Come down enough to the point where we say that short-squeezes over we know that it's dropped significantly over the past week or so down by more than fifty percent or something like that but it's still pretty high. It's it's a moving target. I see different numbers every day. And it's actually fairly difficult to get a real accurate number. Clearly we can say it's way down. Now here's my bet. Bet see new shorts on this story coming in. I wouldn't be surprised if we gotta level at fifty percent and it stayed there for a long time because a lot of people still feel even ninety dollars this thing. This is ridiculously over-priced. There are plenty of people who had ten dollar bloat numbers on this just a few months ago. So it's a moving target. But i wouldn't be surprised if there were new shorts coming in in the weeks ahead last question we have for you tonight. Regulation where would it come from. Who would be the target. Yellen really being smart here. She's being a leader. She's going to channel all this energy and she just knows what she's doing. I'll tell you what the concern the street has is. This could morphine. Do some kind of broader investigation. So finra has always been there the regulators of the brokers finres already said. We're looking at game of vacation of trading that's a hornets nest because immediately you can start saying it's the site you have suitable for your investors. Do you have a balloons going off. Or when people make a trade you have hot trades of the day at the top with this induce people. Who would not normally make these trays to do that. And engage in behavior. That is not suitable for their type of investing. That's a real hornets nest. Melissa i know the sec is looking at mark manipulation. That's a different story. I think that's going to be a very tough case to prove. I'm not sure that what happened here with red confines with the normal indications of some kind of pump and dump operation. I think they're gonna have a hard time proving that particular one. Yeah thank you.
Reddit: Wall Streets Achilles Heel? - burst 2
"If you think about the story of robinhood what he do. He stole from the rich and gave to the poor. In the sense of robinhood. The app did basically robinhood wasting stolen from a rich given to the poor then told the sheriff of nottingham that the poor stole from the rich in that exact is unacceptable literally robinhood. The is disgusting. Literally i'm pretty sure. I mean i don't know the legal implications of this ramification. Excuse me but this is. It's disgusting like i think it's illegal to. I'm not sure if you're allowed to block someone from investing in a specific share of stock or company but
Robinhood eases trading limits on restricted stocks
"Want to let you know we've been talking a lot about the retail trading frenzy here in the states focused on those heavily shorted stocks. It seemed to come a bit undone during the last session, but a short while ago on the Bloomberg terminal, We got a couple of bullet points for the trading platform Robin Hood markets. The firm still has limits for AMC entertainment and Game stop. However, Robin Hood has removed limits for shares of Express and Naked brand, along with Nokia. So in some cases Restrictions that had been in place have been lifted.
Congress gets involved with GameStop and Robinhood
"Story has been crazy but is it all legal whether it's the flurry of retail traders drug stock prices or the hedge funds and partner companies trying to maintain their dominance wall street is entering some new territory and the rules. Aren't really clear here to explain. Why congress is actually starting to involve is recruits. Ronnie mola sherani. Hey daddy so catch me up on game stop so we talked here on the show about retail traders mobilizing on read. It obviously A key part of the internet to buy hundred game. Stop stock right. And then there's this. Hedge fund called melvin capital but hedge for the general were shorting the stock and they lost all this money. What happened since we last talked about game. Stop so basically robin hood. This commission free app that everyone's been using to buy all these memes stocks like games up. Amc announced that it was actually going to restrict trading on certain stocks including game. Stop rate as all. These people were making a lot of money in the stock price was super high. And as a result everyone got really upset especially these retail investors. A lot of people joined this class action lawsuit saying that robinhood manipulated the market by restricting trades and caused them to lose a lot of money. Sort of this. This platform has become Now being dogged by allegations as it's an tank for one side or another. So why would robin and do this. Why would they yup. They're supposed to just facilitate trades and not care whether game stock goes up or down. Don't they make money on volume so they want more activity. But why would robinhood care if some hedge funds were taking a hit. So i don't think robin hood did care that hedge funds retaining hit. There's a lot of confusion about this but basically it comes down to this plumbing about how the market works and how trades are actually executed that you would never really need to know but essentially because all of these people were investing in these really volatile stocks stocks whose prices go up and down. Robinhood has to keep a certain amount of money. These deposits with clearing houses that are based on how volatile a stock is toronto. Keep some money. Just in case stuff goes race yes essentially and because so. Many people were trading in these really volatile stocks. They had to keep a lot more money. Something like tenfold. What they're used to. And they just didn't have the money for so they actually had to get an infusion of cash rely on a few of their investors to give them a billion plus dollars in order that they could keep letting people trade came out said that we didn't want to stop anyone from trading. Anything this has nothing to do with pets funds or anything. This was just a. We didn't have enough money to clear. These deposits okay so for all the conspiracy theories that have been going on about robin hood somehow being on the take or something like that. You're saying the explanation is actually more boring. It's just has to do with the way that complex financial from his actions like this happened right. And i mean it doesn't help that the way that robin hood makes money is it actually has this other company called citadel securities actually executed trades. And they pay robin hood and they make money because they sell the stocks for a little bit more than they buy them for. They make a few pennies on each trade. And then the guy who owns citadel it all securities also owns a hedge fund called citadel which helps bail out melvin capital which was short and game. Stop okay so there's some associations between between Robin hood and the people who were shorting stock. Yes but they're saying this had nothing to do with the decision they made. That was simply because the deposit requirements for too big sure. Sure okay so now what happens now. I mean so. We're starting to see some action in washington about this. Obviously this politically appealing to a lot of people because you can run against wall street running in silicon valley run against the rich people like. Tell me what we can expect. Obviously there's a lot going on dc but the seems like something that could have some. Bipartisan outrage to it yeah you saw lawmakers on both sides of the tweeting and calling for hearings. There's definitely going to be multiple hearings in congress about what happened. Precisely lawmakers are pretty happy to find any reason to call into question. What's going on wall street. And why a lot of this seems very unfair conservative. Republicans like ted cruz want some answers. Progressive democrats warn zero cossio. Cortez are making a big deal about this. Warren obviously has a background in financial regulation. Tell me tell me what she's thinking. About what congress should do about this just so we get a flavor of the types of things being talked about washington. Yeah she's saying there needs to be an sec investigation. The sec needs to do their job. Make sure there's more transparency in financial markets. Make sure it's not rigged. Make sure there's no manipulation so she's sort of just calling for them to figure out what's going on. Are they doing anything about this yet. So the sec side. It's monitoring the situation. It's also going to look into whether any investors were disadvantaged because they weren't allowed to buy these certain securities It's also important to know the sec's in transition right now. They have an acting chair but they're waiting for their nominee Gary gansler to actually be confirmed. But in the meantime yeah. You're you're just gonna see the sec monitoring the situation. They makes me wonder. How does robin feel about sort of these allegations or conspiracy. Theories robert is now being a little bit more open about what happened and they were in the initial kind of crisis mode. Yeah i mean. They've lifted some of the limits that they had on securities. You could now by game stop again if you buy a shares of amc. They're also going on the sort of like pr offensive. Where they're saying exactly what happened. The they wanna tell you all about clearing houses they want to tell you about the deposits the volatility. You know how how they had to spend so much money this time. So like even the vlad ten of went on clubhouse yesterday with your skin kind of tried to explain exactly what happened. you know. And they're just trying to say this wasn't some sort of giant wall street cabal. This was a really boring thing that had to do with deposit requirements.
Reddit-Fueled Stock Rallies Boost Some Bond Prices
"I'm reading about a lot of these companies now. A like an amc or american airlines that have been selling stock now and raising cash and now they can pay back their bondholders. So some of the creditors in these companies. That might have taken a big haircut in bankruptcy. Now they're getting made hall. Thanks to the red riders. Coming to the rescue now. Maybe these guys didn't realize that in trying to stick to the hedge funds. They were rewarding some other big players that they didn't intend to reward but there are going to be a lot of winners in this short squeeze but the big losers are going to be the shorts that were forced to cover but those are the big hedge funds. And those guys you know. I don't feel sorry for them. I mean that's par for the course. I mean there's nothing is risk-free right. You get short. A short squeeze is always a risk. You know maybe this one came out of left field you know. It wasn't exactly what they expected. But then again you know you gotta expect the unexpected. I mean that's that's life right. Some things happen. Murphy's law right anything they can go. Wrong will go wrong. This went wrong. So they're gonna lose some money to people who unfortunately are gonna end up losing a lot of money. The most money are these small investors who are buying into these stocks that these inflated prices. Because it's not just a short covering that's driving the market up. It's a lot of these small guys in these chatrooms wall street beth's who are buying this stock and they are enabling everybody else to sell including probably some of the other sophisticated people that got in on organizing to pump that were probably disguising themselves as little investors looking to get revenge on the big hedge funds they were probably sowing the seeds of this rally and they news a pump and dump and they were dumping after. The pump approved to be successful. Now we'll see if robin hood. The company ends up being a casualty here or ends up. Somehow being a beneficiary mean a lot of people obviously are quite upset at robinhood for shutting down trading in stocks. Now actually you know a lot of people may have been done a favor by robin hood. I maybe that wasn't the motivation. But to the extent that people were prevented from overpaying for stocks that probably saved them from a lot of losses so it probably was a blessing in disguise. But again what people have to remember about robin hood is that the customer is not the retail guy with an account. Because those guys you're trading for free so you have to realize when when you're getting something for nothing there's a catch. There's no free lunch. Robin hood is a business. It's not a charity. They have to make money. And if they're letting you trade for free will then how are they keeping the light side. How are they paying the bills. What's in it for them. Well what's in it for them. Is they take those orders. to hedge funds that derive value from them. What's the value. Well they get to take the other side of the trade. They get to sell what you're buying and make a profit. Plus they also get the information they probably like to know what's being bought what the retailers are buying so they can figure out how to sell it to meditate inflated price and how to make a profit so they're the real customers real customers are these hedge funds that may have put pressure on robin hood to not put through these orders or an a minimum. They just refuse to buy them anymore. Hey we don't want those orders we're not gonna buy your orders to buy game stop. Well then how are they gonna make money. They just can't keep trading for free and then having to pay and lose money on every trade and i have a feeling that they lost a lot of money during this this whole situation so did to basically stop the bleeding. They had imposed these trading limits but to the extent that all this information comes out Then that may really damage their reputation and their brand you know they're raising more and more money they were hoping for an eventual ipo. I would imagine that this would at minimum put that on hold for quite some time but of course what it is doing is in building these regulators to think how we need more regulation. We need to get involved. We need more government. When as i explained in my last couple of podcasts that is the last thing we need is because of all the government that so many small investors have no professional help and are therefore more vulnerable to be taken in by this and the solution is not even more government dissolution is to recognize the damage that government has already done and start rolling back all those rules and regulations that make it so expensive for legitimate investment professionals to work with small investors. Take away all those rules and regulations and allow these guys to get some help so that they can bill the much better portfolio and will not be so vulnerable to these type of internet schemes. But of course the government will never recognize themselves as the problem when they only see themselves as the solution and the more they try to solve the problems the more they compound them and make them
Robinhood raises another $2.4B from investors amid surge in trading
"Popular online brokerage Robin Hood said it raised another $2.4 billion from investors as the manic retail trade enforced its clearinghouse to increase deposit requirements by tenfold last
Robinhood Reduces the Number of Stocks With Restricted Trading
"Over the weekend. Robinhood announce it reduced the number of companies with trading restrictions from fifty two eight opening new positions on game stop. Amc entertainment blackberry express. Genius brands costs naked. Brand group and nokia shares is still limited. Robin hood said it. Put the limits in place. Efforts clearinghouse deposit requirements for equities increased last
"robinhood" Discussed on The Fundamentalists
"So i put a billion dollar a million dollars into you. Put a billion. If i've been but i short a million attiyah company and of course i've got the part and maybe sand statements to the media and we think this business is going to fall apart. We them that's the twist ending is at all of this is nothing at all just vapor. It's all pretend and so. I hope everybody has fun with it and never invest more than they can afford to lose because this is all dumb and this emma tells us only what it is to be human. Because it's not about it's not about what you believe. It's what you believe the other person beliefs which is you know. We don't we don't desire things. We desire their desire. So when the second. I i i like money. He was pray because other people like money are what others desire. If you're ryan a pilot people who lived very simply you might start not like money but you know it's like the weird thing where it's not about how good the company is. Hi good eating. You think the company is an nf. I think i'm always betting. That's what i did criticize. It's not not betting on crypto. Being good. I don't think it is. But i'm betting on other people's thinking as good listen dots why investment. It's not because. I think cryptos good credit critical but trickle of the but yeah but i believe other people aren't so it's a weird kind of game. Yeah it was very fun folks. Thank you for listening to this episode of the fundamentalist. If you would like to subscribe to us on itunes. We greatly appreciate. It would also greatly appreciate any kind of reviews. you could leave us on itunes. This episode was a little different. We didn't get into anything involving you know. I don't know what when well we got into the real the real talking about self concept you. yeah Absolutely plug plug. I forgot i'm star. I'm doing my token bringing together opposites that you think don't fit together. I do a course every year call. Espn for land. Which shoes atheism. Theism people think that they're separate that their enemies when actually they're they're in a very passionate love affair with each other they enrich each other and they interweave with each other so he at the isn't for is a forty day course where you have forty reflections and i give a live salmon once a week and that starts in the seventeenth of february. If you're interested. Go to my website. And i also might do an online version of my wit festival in so that might be unsealed next week if we i'm not sure it was a great idea. Yeah i'm thinking out. Go to belfast in an irish pub. And we're going to have musicians comedians. Magicians and then they'll be. I'll be talking. We'll have some kind of interesting philosophical ideas. We're kind of comedians. Well whether you wanna come to belfast. That depends on how many people sign up. Yeah thank you everybody. Good bye bye bye..
"robinhood" Discussed on The Fundamentalists
"De. There's a there's a current within you that that is speaks to your truest most authentic powerful self and that's what the dame on his people can also be evil and be gripped in their day on at the same time. So you get people like hitler. Freud was said to be in the group of his day on long darwin. Very good they go through these phases of your creative person. You know it feels like when you're overtaken by the creative impulse to create things and it feels it's actually not you and so you could say that about tammy faye bakker that. Yeah so dots. I am excited by like this. Finding news those events within a society that that brings together the people that you just can't economize like maybe we needed. Maybe what we needed was A break from the noise that was happening and now it does seem like we had this inauguration. We had this capital scare. We have this election quagmire that we all got into pandemic so-called election so called. We're gonna give it that name but now it's like i just love that. This is just people doing this. It's not a campaign to elect a candidate. It's not like we're better than the other people. Just people go and these guys are saying this company stock right now and really screw them over and people are like marquette right to it and it works and then everyone is just like freaking out and is suing. The amc who was the second hilarious like worst stock. You could ever by. Amc you'd imagine you'd wall to short stop mailing. If if if they start reopening which they're talking about doing in the next coming months people will want to go to the movies again so it's not the worst investment. Yeah but i would never think to. You'd never thinks that s. Yeah you could think but you're taking a big risk if you invested. Mc daphne you'd wanna sure it up and then all these people are just by shares and amc and that just so funny man the power of the internet. So i'm just waiting to see and it'll already by the time this comes out. We'll have happened. Probably high these. They're going to divide us highway. They're going to make this seem like one group against another high. They're gonna try to break the unification dine almost. Yeah interested to see. I entrust the people who are at the forefront of this movement. I trust their address them to not fall for that i think but maybe maybe they will. Maybe they won't full for it but if they turn everybody else against them i mean what are you thinking. Are you thinking. That's what's going to happen like you're gonna see my guess is they'll try and p. anthem someplace their prime pm extreme group like like either on arcus guys like they're all these are just a bunch of lazy people going after trying to attack wealthy people. Yeah yeah that's it so it'll either be their own. People are honored guests or these right wing extremists. So it'll probably be both. They'll pull the whatever sticks. Whatever gets whatever bricks this up but then it'll be something else but it was exciting to me that i saw two things that are like that gave me a little bit of a little. Bit of hope. i think they're very small things but they're like significant. I mean this is a revolution company. I think it was an injection of two point. Seven five billion dollars has the game stop credible amount of money money two days of the military like my goodness. Actually i think it's like one and a half days of military spending day. Yeah military's five. I see the inauguration. More trips abroad syria on the day of Anyway you use. You need to get off the news. Sometimes you know too much time for me to go back into my whole well. This is a shorter podcast. Which you know what it's a story that's still developing so since it's still developing no let's go ahead and check my stock. I myself have invested in as i said legend pharmaceutical. They did this with game. Stop after hours. It drops right so by the way. Why are they have. They got where people shorting them or are. They like a really bad pharmacy. People were like no they're not and they've had prophets for like the past the however many quarters and owners tried to or whoever shorting they found the guy who tried shorting it and it was a guy who tried to do this years ago and got shut down doing it. So he's he essentially trying to screw this one guy who has attempted to do this before who is a a very rich person and the company is very good. Yeah it's still sinking. Yeah they're so okay so Yeah it's plummeting because it's after hours so we'll keep you updated as this story develops but this is gonna keep going up as my my guest because i'm an idiot but yeah and if i found this and people are like rallying around it we'll see what happens but i'm still a big profit i've ever made on the stock market today in my whole life and which tells you how much the normal americans have invested in the stock market. This could all go to nothing and it wouldn't affect me but people really invest in this stuff. Yeah that's crazy. Yeah i mean it would be crazy. To just invest a bunch of money and this is the other pro gained pharmaceuticals l. Ged and the reason. I one of the reasons why people don't like this strategy of shorting. Because you know you could try to short a business and then you can. If you're a powerful enough organization you can be saying well. We think this business is going to feel on. The business only starts to feel because you say it's going to feel like you're your big institution. Ups's as a self fulfilling prophecy not that the businesses are good or bob. Its that perception and you can you can sink an entire business just three perception..
"robinhood" Discussed on The Fundamentalists
"Don't get their share they're gonna wanna play the game because they know that they're an active player if they're unified with everyone else. Yeah i'm wild which is unified as well as like. It's not even you. I want to get a share. But it's also knew i won't. I won't despite community to get show. I want to the people who are not able to pay their rent. He aren't able to have a job at the moment. You know it's like there's something really I mean it's it's it's there's pure and impure enough but as l- some level. It seemed like a lot of these people. Were just going right. We want this we want to we want to do. What robinhood booty. We want to redistribute this wealth and like overnight they bs took billions of some hedge funds like billions item at to an redistributed. These people who who who know that they are ultimately protected from every force of financial nature. And yeah and get put a chink in their armor is pretty cool. Pretty cool the fact that you know. Say like suit temple on the right. He's he's got a different view to me a bite but he's he he says and it's interesting to me. He says he wants to see the value. Created by regular people dodd value to be used on of benefit to regular people. So it's interesting that without making a left right. Socialist coppola's distinction. Actually i think there's people in your honor guests but also here are socialist and also are libertarians who it all concerned a bite. At an increasingly divided society where tiny percentage of people how phenomenal wealth. Why the the mosses. Don't even own dune anything. Eat yeah there are also seems to be just a. There's a poetic thing to all this. I mean it is. There's a level of beauty and elegance to this this story and it's so damn goofy like it's about game. Stop like we peep we. The people used game stop to take out. Billions of dollars from wall. Street is the most internet a whole way. I could imagine this going down. It's so exciting and it also is like we tried. I think as more leftist people to get a more leftist candidate elected and what we got elected every say we are not including me known as i don't like we don't want who got elected. No that's what i'm saying. We tried to get a time before dollars. Okay okay alcoa. The general there were primary and we try. Try real hard to get someone who go after the rich in the mega wealthy didn't work which is fine. Sure but now it's like there is a little It's like yeah. We stormed folks stormed the capital. They were very angry about things and now other people are very angry about other things and they're storming wall street with their their cellphones. It's pretty cool. Yes i was sad to see some of the people who are in the comp that i think we are and i am being very not listening to the various eruptions of anger so almost like some eruptions of anger. We listen to some. We can't but i'm like what's interesting about the to events. I talked to buy one. Was on that michigan yeah. I'm curious about that. I don't know anything about that fascinating this guy. I washed interview essay on jimmy door. Show and jimmy dewar said i'm going to get in lieu to trouble for interviewing this guy. It was incredible. He's kind of an honor guy but it was this incredible unified thing and he said. Oh yeah i was. There is a blm organized beside me on we were there doing security for blm events. Don't security i think for and you're gonna dot com happen dot com because if you go into wikipedia and you read about googly. They're like a rightwing militia group white supremacy. Although i'm not a fan yes you know. I'm absolutely of course to say. I'm a little worried about him. Yes absolutely within. You should watch this because it was like one of those moments on the funny thing is this happens is called reformation. At various times in history to grips that you literally think canopy unify unified and create a third and the the very obvious example is gm chantale with the apostle paul. Right gm gentile were seen as completely opposed grips like literally. It's hard for us to imagine but that would have been promising in the catholic from me in northern ireland. it was julian. gentile couldn't be unified and then pull comes along and hits on something that allies for and gentile to be unified christianity. But this happens. At various times in history were opposed grips. That you literally think will never be could never be unified when you hit on the real on tiga zoom. That's going on in the society. Those scripts unify because they are the calcified. Symptom of violence in a struggle has not has not been hit upon. And i just think that this is kinda because for me is the moment that there are small number of people who have got more mass more and more volley and there's more and more people don't even own. It's not only that they do their workplace. They don't have any they don't own what they want. Only rent their tv stations to their rent. Their movies they rent they rent this. They don't own anything. There's new invest no generational wealth. That's been handed down. There's no land that they owned. Yeah they they are paycheck to paycheck and surviving. Not and they're living there literally surviving. Yeah yes that's it laczi. Two weeks ago. I wouldn't have said this publicly. Because i would have been dangerous to say the fundamentalists barely bertie public for years. Now i can go. Here's two examples because literally the proper leftists are like jimmy door. This guy from the black panthers sitting was literally. Santa's bite this guy. I agree with everything he said he said and he says his things. There's people who are in these various movements who are bad and there's people in these various movements who are just really reacting against on a toronto corporatist system with a type of ideological structure which is basically the media and entertainment industry. That's holding assault on I mean not me. I'm very lucky. You know yeah me too Obviously naming another group the funny little quip there will. Yeah because you you're very Good i think at at uniting. I see it in my head. The graph that i want to describe your very good at If if politics was a circle you do have an ability to sort of triangulate. Both the left and the right with your your ideas on things because you truly are. I think are not against any particular ideology but you do. I think you do have kind of your eye on the prize so to speak about what would be the real problem. And so yeah. I mean this i imagined for you is like such a proof of concept. Yeah this is yeah. I mean we've talked about it a little bit but you going more of a political direction. I think is a very good thing. Especially when the it's around things that can actually as lame as this is to say you actually have an ability to unite people from opposing standpoints. And i think that might be crazy kind of needed right now. Oh yeah well pleased. I give this talk a couple of weeks ago. I said because nearly example. I could use tommy. Fabien occur at the time. Because i was like tammy faye bakker was a character. He united fundamentalist christians and the gay community and people who are trans rights activists. Marilyn manson has his picture marla massey and mart like she brought she unified people. He literally thought couldn't be unified and it wasn't because of like something she did. It was who she was she. Her she touched on something that that unified across the american divisions using the grip of a dam on. She was what she was in the grip of her. Damn was i just two tongues a better grip on the the the idea that you didn't become overtaken by like yes..
"robinhood" Discussed on The Fundamentalists
"So if you short a stock at ten bucks you buy these shares ten dollars and you get the straight in my head right. You're getting there. Yeah i borrow as a as a an individual. I borrow the shares of someone else and i say i'm going to give you these shares back. I tick shares. I sell them to somebody else. Because i think obviously they're going to go down in value so i sell them to you for ten dollars and then i think in a year's time when i have to give them back to the person that i borrowed them from i think they're gonna be worth three dollars so i buy them you for three dollars. I mean at seven dollars. And i give them back so that already. Kind of lost me. A little bit of a mixture. I'm borrowing shares of this per person a on them. I have to give them back. And say years time. Then i sell them to person be and i sell into person for ten dollars a share and that because i believe that the shares are going to be worth three dollars in a year's time so i'll be able to buy them back for three dollars so i've sold them to you for tan and then i buy them back for three so i been at seven dollars per share when i give them back to this person who paid a little bit of money for them to lend me the share to dummy accents. Yeah i mean. I got enough of it in my head held it and took the the difficulty thing is if i buy the share share for ten dollars the maximum. I can be 'cause like nine dollars of gu's right down one dollar then. I can make nine dollars because if they go. There's new limits higher. They can go. Yeah so if they go to twenty dollars thirty dollars forty dollars. I have to buy them back to give to that person so i have to buy them bucket thirty dollars because i have to give them. Box lost twenty. So that's the whole blue line memo or whatever the phrase that's going around on on everything where they're like whole blind like do not sell. Yeah they're trying to lure the price so as at least and in so. I'm seeing that and it's like people seem to by enlarge maybe not by and large Significant enough portion of them are not selling as the price skyrockets which seems to be truly like just when i was coming over and again. This is the thursday so it was gonna happen tomorrow because my apparently stock has started the tank. But that's another thing. They were saying that after hours. These these hedge funds and stuff can make deals. They can do things that you can't do as a normal person. Yeah the trading hours and that alone is sort of like not fair right like you should be able to buy stock. The same way anybody else can buy stock. I don't really understand how they can do. That will ten guests in newcomb. But you'd have to knock three robinhood. Like robin hood has made easy for people to buy small amounts of share so technically. I guess you calm. But it's really. It's like buying crypto coin. It's really complicated. When i decided to buy a little bit of crypto just because i was nervous about kind of the economy it was a real house. Name one reason. It took a lot of other by get because there was a particular trip to coin that i wanted to gap required. Getting to y- ops and by getting my bank connected and the bank didn't want to be connected was a real hassle to you. Don't want to be involved with this. Yeah it's It's wild man. It's beautiful i mean it is. It is in fact that the freaking app is named robinhood. Funny it's so funny and they're just getting raked over the coals. I'm like how do you think this is going to go. Like like your whole market your whole ideas to pitch to the every man who can then do day trading get involved. Have a little bit of a piece of something see what happens play with it. It's fun it's very user friendly. it's beautiful like interface on that That app and then they just piss off their entire user group and then how are they going to survive this. I don't care the users or the robin. Yeah i mean. I wonder why they like. I guess they did. I guess they're conscious reason for. It is to protect their customers. Who might get kind of caught up in a gold rush. I guess that's there. But i don't think that's what's really going on. I'm guessing that's what their official line is is that there's a gold rush on. Some people are going to cause. Some people are going to lose a lot of money on this. The stock is probably going to go way up and it's going to plummet and has everybody's sales but there's a of people are jennifer ideological reasons. That's what i love like. A lot of the people are not doing its molly. They're literally doing it to redistribute wealth to kinda to dommage wall street. I mean that's and that's how do you get. How how does that. it almost like. We'll now we know we can do it. Yeah so it's like what stops people from doing this again. And again and again to fighting people i honestly see there will be politicians and there will be the media. The that's why. I don't listen to the media and legacy media loves to divide divide and conquer say because when people are unified when unity happens. You can do this kind of ship. So i'm going to divide us. And so i just like northern ireland. Divide the protestants from the complex divide. Remind them that they're different and they have. They have their own disagreements. Leave us alone. Yeah yes don't hit on the don't head on the fact that really what's that guy. Believe that thing and that guy believes that thing so you guys should work that out and then you can come to us with all of our billions of dollars. That's it escape gooding. Skip a psycho. The new there the problem you know what's immigrants or the problem more or the this communities the problems get get people to fight internally because when they unify and when they unify anger we the people we the people sacrifice and create the wealthy and so the wealth that we create should benefit the communities that we're from retro. Yeah yeah what if the people that are bad or not bad. But what if what is bad. Is the billionaire. Wall street hedge fund people. What if that's the case. What if we found the real problem. What if we hit on the real. Yeah yeah it's funny. I mean it's not the individuals but it's the system. It's not the individual. Because i knew people were so i knew people who are here in that world stuff. He actually believe in the redistribution of wealth. They're not they're coming from a different perspective than me and how that looks but they are incredibly concerned. Bite high to stop wealth from galvanizing collage leading an antibody tiny. So yeah yeah. I think if you're an individual billionaire and you do you you come more of a billionaire because you're successfully able to play a game. I don't view that as being immoral. Like problem i think yeah i do think though the team you play the game and i think it's a it is a little bit of a game and it is complex at times and it is risky. But it's like the fact that like the it does also feel like this is a development. That couldn't have happened. Twenty years ago before the internet's like this is stock. Market's been around for a while. And and now there is a there really does seem to be a coalition of people that they're not gonna they're going to want to get their share even if they don't get their share they're gonna wanna play the game because they know that they're an active player if they're unified with everyone else. Yeah i'm wild which is unified as well as like. It's not even you. I want to get a share..
"robinhood" Discussed on The Fundamentalists
"This share thing you've seen people on the right on people on the left all unifying orion this bean a good thing so you have people like you got tim pool. He's more on the right. You've got on the left. I haven't seen what they're gonna say. I knew on the left. You'll have jimmy door will support your have richard wolfe. You'll have out of reach. you'll have all of. They'll they'll support up even have some kind of identity -tarian politicians supporting so basically when you hit on the real. On tigers the society you unify seemingly opposed grips and. That's what's really frightening to those. Npr like dasa moves frightening thing so already the the radha thing. They're trying to shut that dine robinhood shined on already. I think things being said that this is these are trump supporters or something to be seen that they're trying to say that it's a it's a hit speech on it and this kind of thing so they're gonna try and divide us again anyway. So that's my initial thought. Wow that's great yeah. I love that. I was reminded of. Afc who tweeted something about certain this whole situation and how insane it is and how like. You can't do this like this is people are allowed to trade. And they're allowed to. You can't shut it down and you can't. It's not. It's their own fault. Essentially isolate even was supported. I was like that's pretty impressive. So it is used for ted cruz. Quote tweeted it. Instead totally agree and i was like. Oh we've gone down so many rabbit holes in this past couple years past year mostly as seeing ted cruz agree and give a stamp of approval to aoc. I despise ted cruz. But i was still like this. Is the thing. This is the thing and of course. Aoc responds and she's like yeah. Yeah tried to have killed a couple of weeks ago so you can sit this one out or something. I don't get me started. But we have differing opinions on it. But i agree. I know what you're saying. And you'll make a very solid point. And i think that it is a very good point about that. I wouldn't have been my reaction to that because it just wouldn't have been but she's going to do her. And that's fine. But it was still cool to see a polar opposites who feud online all the time under one banner. Go nope. but that's when you hit on the real and put in politics at the real versus symbolic and the imaginary yes symbolic the imaginary. And then the real and the real is where the action is. When you hit on the real it transforms a symbolic environment. It forms the imaginary so suddenly you like you know. You've hit on the real. When oppositions high ever immediately some people will start to try to separate again and nasty injure so in northern ireland. Identity was used to divide us. Protestants against catholics. Thought was a divide. It's kinda funny probably for americans to hear that that was like was. You know protestant and catholic. You were at war with each other. I mean it does sound silly on. It was only until basically. We realized that we had more in common with each other and killing atheists yes we unified so it was that bringing together. And that's what i've seen twice in the. I've been waiting for it to happen on these things will be. They won't work actually and they'll be shocked on but the but they'll come back and they'll arise in different places and yet when i saw i saw some people on the left and on the right green and saying congratulations to each other literally like i didn't see literally go on a man. I agree this person on people who and mature and big fight and sam. I have slagged this person off. I've never liked what they've said. But i fully support them in this and i thank them for for for for speaking to fight this. Yeah it's wild man. I've never i. I wish i could just you know. Download enough information into my brain to be able to fully appreciate the. I don't mean this in a way that it's that in terms of the real but in a symbolic way the what's happening is so cool. And i can appreciate it from like. I'm like in the bleachers. Just be like wow. Yeah i'll get on my robin hood. Which which one. Which one is the one that has some billionaire. That's like shorting this company for apparently no reason and they're like do this one okay. Great and then the like does not affect how does not change the whole system moving forward like how does this not either. How how do they stop this from happening again now. Will i mean they're going. Stop at like a bit but the funny thing is this is why it's like. This is a way of redistributing wealth. I mean that's why. I think it's hitting the real because literally this is. This was more effective than occupy. Like what's happened in a few days did more than the who'll online. Yeah and also a lot of them are just made a little bit of money as well. I'm sure some of millionare's but a lot of just regular people have just made a new camera but there's from the hands of billionaires it's so clever because shorting i knew someone a very close friend. Actually he's a he's a hedge fund person and shorting was a way in which you could make a lot of money but the dined side of shortening is. There's kind of no limit to what you can lose. And that's what's so clever was is shorting is probably is an easier way to make money but if you short a stock on it rises in value by hundreds of dollars like so if you short a stock at ten bucks you buy these shares ten dollars and.
"robinhood" Discussed on The Fundamentalists
"We are filming this currently on recording this on thursday january twenty me sever seventh. Why doesn't down and so i. I woke up this morning. I've been seeing things. On the internet about the kerfuffle going on over wall street as a result of a bunch of hooligans on the internet who decided to i i understand very little about this but i do think i can say a summary. That sounds is broad strokes as possible. people bought a lot of stock particularly gained game. Stop because it was being shorted by people on wall street who believed that the company was going to fail and so they shorted it for a lot. These people got together bought all stock and then therefore the people who shorted it now. Oh a lot of money because of the amount that the stock price has increased by true. Yep that's pretty much it assume. As a result a lot of people normal people have made a fair amount of money. The app robinhood which was once a sponsor of one of a another podcast. I'm on called the valley karan. I don't think we'll be. I was going to tweet something from the valley folk account and we will no longer be having robinhood as a sponsor but they fired. They fired as a year ago. But still we're not doing well. Sounds like robin hood is not working for the sheriff. I've heard this year from nine am. Yeah it it is such a funny because they stopped. Yeah because i yeah. I tried buying mc stock. I tried you know. I'm not buying these people wall street. Bets will throw in tens of thousands of dollars. It's maybe a little addicted to it but also they're they're pretty good at it. I guess sometimes but I i'll do a little bit here. And there and i tried doing an amc stock as well because that was next on the docket and they cancelled it because one stock it was like eight dollars. An hour wind share one sherry. Excuse me yeah one. Yeah i did one entire snow you ups. He bought the entire to whatever. I'm not nice thorough. amc see. I bought the stock. So but i did. I have today started dabbling in i went to i. You know i have a robinhood app. And i have like a few told me about it by the way you to do. This thing called robin hood. I went on up just a couple of things on of it was kind of cool and you can forget about it. I forgot about it. And i only like five hundred bucks that was in there for year and a half or something and just shoe off. I know not sort of a loss. But i was like. I'm a transfer all my stocks to this other stock called legend pharmaceutical. Because someone on reddit was like do this one now like this one is still available on robin because they shut down like you were saying game stop. Amc which is weird right. That's weird talking about without the app. You can't do that right. you can't do that. Yeah i mean it's very. It's a very highly regulated industry. But i don't think you can do i. Yeah yeah it's it's area but it's not cool. It's not it's nothing untoward about public. I mean you have a ration in the background or behind closed. Doors people publicly say. Let's buy shares in this company and we're going to stop them. I don't think you can stop them from doing that. Yeah it's it's a bit dodgy. I mean i think this is when you mentioned because this was your idea for a topic and i was like like i said. I think this is a politically important event. I'm going to try and shut down there. You're going to try to shut it down. Absolutely they are the reactionaries. It is wild. Did you see the clip of the the ceo on cnn cnbc. Who is just going is like a billionaire. Old white guy and he comes off. Let's just say unlikable any he basically was like what they're what people are doing is they're sitting at home collecting their checks from the government and doing anything in all. This is an attack on the wealthy and everyone was like that is what it is. Yeah so what do you think about it. You have also have views on capitalism. That are i would say very in depth You love the bitcoin. You're familiar with all these things. What's your take on it. Yeah okay this is. This is his interest. Okay so i- funnily enough. I did a talk only about two weeks ago and it was on social antagonism politics on youtube. You can find if you forget what it's called but it in that talk. The funny thing is at the end of the talk. You can find it if you want. I don't know what it was. Find it if you want. I don't know the title. It's somewhere but at the end. Talk i was i was talking about high social antagonism works and the idea that that within a society there is like all of these On tigon assumes that are going on these symptoms but then there's an unspoken central antagonist called the real on when you hit on that It unifies for people who you would never have imagined could be unified right so i was so somebody asked me. What does this look like saying. Well you'll knew it when it happens. When it happens you will see grips that you literally thought could never occupied the same location with either relation unifying and i said in the talk to express that but i don't see anything of that happening in america at the moment and then two things happened like a week later so i wanted to mention the the first one which we talked about and then the first one was fascinating because it was a speech given on the steps of st it court heison michigan by one of the bugaku voice. Right the burglary seen as a rightwing militia group all of that and he was flanked with a blm organizer on their pro boys all together and he he had a pride flag and he's bisexual himself and he gave this incredible speech that he says they're more. There's more that unifies us than divides us americans and he say yeah yeah. He said that he said he said the boys antifa. Blm burglary says. These are not the problem there. The antibodies meeting. There's a virus in the system and the anti bodies arise he says basically these are the symptoms the calcified symptoms of a problem in our society and he said in the problem is basically a corrupts corporate governments both sides corporate interests money going from the manny to the few and said like if this continues and we are unified. We this has to stop. We plead with you to make the stop and he critiqued the military industrial complex. All of that so the interesting like this as then. He was interviewed jimmy door. Jimmy doors a leftist. Mary good leftist. I think there was also the next week. A guy called fred hampton. who's a blank black panther. He was black panther talking about this guy. Cool as suddenly. You're seeing like literally a week ago. If you'd said that the people on the left on people on the right on and on biella and bugaku would be kind of unifying a rind. This talk you would have said it was marvelous. A man's madness so that event really interested me is like because it hits on the real. What's the real. The real issue. Is the wealth of the the value created by the manny is going to the few right. The sacrifice of millions is going into a smaller and smaller set of hans like the companies that have benefited couve etc. And then the second thing was game..
"robinhood" Discussed on Equity
"Hey everybody alex equity team we're going to skip are normal ad because there's so much going on this week but if you need to access extra crunch use the code equity all right. Let's go hello and welcome back to equity wrenches. Venture capital focus pockets where we unpacked the numbers behind the headlines. This is an equity shot. We've decided to do is take all of the game. Stop robin hood. Stock market brouhaha s. But in one bucket for you and then we're going to regular show later but in case you just wanted to hear about the stock market. I have danny crichton with me. Danny i take it. You're in a great mood. I am in a very caustic mood right now because of the stock market also. Because you're awake can met you. We also had natasha mosque. Arenas how are you doing. I'm feeling a lot of fields yesterday. The story wasn't a completely different place in this morning. So i feel like we're all going to be catching up. Live which will be fun. I think yeah so if you're a little bit behind the stock market has been a little crazy lately and we had begun to ask trading apps what they were going to do about it and then this morning starting to do something about it so guys. Where should we start. How back should we go to get. People caught up on the saga. That is the last few days. I think we can start a decade ago. So i think i mean let me do. A quick historical rap break even occupy wall street. You ever want people to to speak. Who are angry about the global financial system angry about hedge funds who are sucking out. All the money out of the economy didn't go anywhere but a lot of those people actually migrated online into communities on red at like wall street bets and others and tried to beat the system for what it is basically the most cynical view of the way the stock market works today. And say how can we use it cynicism to actually make money so you saw that with wall street pets. You saw. That was zero. Hedge is a bunch of other accounts and groups and brands etc market. In the last week they nailed one company. Stop and i think that's the story..
"robinhood" Discussed on TIME's Top Stories
"Ira with an emergency fund and no consumer debt and you have some extra in savings with which to play or gamble with then okay robin hood for its zero commissions and fees and no account. Minimums is a quick and easy way to trade in this fashion. Just consider it a pricey pastime. That won't necessarily pay off. That's what i did fully accepting that my party city stock pick could fall on. Its face in the end. It gave me something silly to brag and laugh about with friends. Not a blueprint for making money to it. Shouldn't be this thrilling. The user experience on robinhood can be fun until it's not when i opened the app. The first thing i'd notice was the total value of my portfolio which adjusted every few seconds with digits rolling up or down buttons colored bright neon green or red depending on if my portfolio was up or down would tell me to deposit funds or invite friends. Another button. Wanted me to click to learn how to earn free. Stock critics of the app have cautioned against this playful and friction less nature of robinhood which they fear can trigger users into making too many trades and losing money. Robin hood is the gamification of investing. The whole point of it is to keep hitting the buttons pulling the levers and turning the knobs as much as you can says morgan hassle author of the bestselling book the psychology of money sure enough robinhood users have been found trade nine times as many shares per dollar in their account compared with investors at e. trade and forty times more shares than investors. At charles schwab. Some regulators are none too pleased with robin hood late. Last year massachusetts securities regulators issued a complaint accusing the platform of aggressively marketing to novice investors. And doing little to stop them. Making reckless choices. Robinhood disagrees with the allegations around the same time. Robinhood paid sixty five million dollars to settle charges with the sec that it failed to properly disclosed users. How it was making money off. Their trades and that the company failed to satisfy its duty to seek the best reasonably available terms to execute customer. Orders while robin hood is touted. Its commission free trades to users..
"robinhood" Discussed on Software Engineering Daily
"So we needed to create a way to make own boarding into what it takes to build a robust discredit application to kind of raise the table stake of information about the two lanes because actually building a distributor application, you have the kind of account for a lot of different things. Right. You need to be able to build resilient applications and producers and consumers because there's a lot of challenges that come with that. Right what happens if the cluster is available? What happens if networking problems right? What happens when service churn right? How do you come to ensure the consistency of the data right? I, like to. Say Kafka does a great job of providing delivery guarantees. They're not for free. You have to kind of know what knobs turn and it's the double edged sword of Kafka Platform. There's a lot of now to turn and they can be Kinda nine to live in one of the big things we have to deal with not only teach people build the right abstractions, but also onboard peeled the understanding how to build a security applications but also kind of let them know that you can't just point and producing consuming, get all the guarantees. All were right. There's some kind of making it notch needed turn to be able to do that. So I think in generally doing a better job of. Increasing, the abstraction and understanding of the platform needs to be used and also given less knobs to turn was a particularly challenging in and that we learned the next, we're thinking a lot about how we might use Kafka proxies to kind of bill the right abstractions out so that these teams have the billy tonight think about some of those nuanced details or distributed processing advocation and I end on this note, the beauty thing here is that going from a company that was heavily leveraged on ACP Badge and then go to screaming it Kinda built the foundation I. Do some pretty magical things. Two of them being robinhood clearing, which we did a blog posts on, which was a pretty big honestly technology perspective a lot of broken diller's take years and years to kind of develop the and we built that out in half the time the last team that did it which I think was Van Gore did we did it in half the time but that is Kinda able to be able to be delivered because of the expertise that we built up on screen processing and then very similar same can be said and I think there's A similar engineer impose related to the David. Late thanks to the kind of expertise that we had there. It really allow for the data team to build a robust data like allowed them to kind of execute an answer the questions about the data I like to tell people were a data driven product driven engineering organization. So the ability I remember my previous job G. E.. So before I was a Robin Hood I was g they were dreams of talking about building a daily and it never happened into to come to robinhood bit of expertise screaming and to. Have, the data team comet take those Lego blocks and built out of data? Lake is pretty magical and exciting. So that was a mouthful jeff hopefully, that was at the right level in detail there and I'm happy to go anywhere there I'm quite sure the listeners are going to enjoy all of that and I think we should do a follow up show in the future because there's so many things I wanted to ask about that. We didn't get to. I'm just going to close off with a simple question, which is what has been the hardest thing to build. Oh. So I think from two verticals I came to Robin Hood in got the unique opportunity to solve two big problems that was take the company from batch to Sh- gaming into redesign, the services service station layer, and honestly I didn't have a ton of expansion distributed systems I. Remember the very first time I got exposed to distribute systems was a CD IT Koro S. And this had to be twenty fourteen at Strange Lupin in Saint Louis the team was there and I got exposed to that and I was like, wow, just kinda knew that this would be the future naively and somewhat optimistically in reading about a distributed systems in the edge education, you would always see on twitter blogs of Discrimi- systems fell in these almost magical ways that thought. And Yeah they do. Were you use it these kinds of fire cases and I've developed this middle model where I'm always asking how can these systems fell and how to build resilience applications to ideally resilient to them recover without operation over here but ideally do that. But in the minimal beaver alert when those edge cases occurs so that we can alert and kind of get people involving the right visibility. So the hardest thing was just really going from zero one. And understanding, distributed systems and what it took to kind of manage them not only in an academic sense but actually in a production since that would allow us to actually deliver this product to our customers and then secondly effectively doing exact same thing. I was always kind of sheepish. I had mostly engineers on the team was kind of expert networking and always sheepishly now, really understanding how DNS works to be worth and going from kind of. A million miles one, hundred, thousand feet, high level understanding of how network happens to be like, oh, no I need to understand all the nuances of how Dina's work and they don't understand how this works inside of Robinhood, and then be able to design a system that would allow for the company the scale all while kind of dealing with imposter syndrome of not knowing either these technologies and I think the hardest thing for me was Skilling as engineer going from zero to one, and then quickly taking these things I read and concepts I learn, and then production is them in the way that really fit our robinhood infrastructure in a way. They could the delightful experience for our internal application owners and then ultimately our customers. So those two things.
"robinhood" Discussed on Software Engineering Daily
"So we needed to create a way to make own boarding into what it takes to build a robust discredit application to kind of raise the table stake of information about the two lanes because actually building a distributor application, you have the kind of account for a lot of different things. Right. You need to be able to build resilient applications and producers and consumers because there's a lot of challenges that come with that. Right what happens if the cluster is available? What happens if networking problems? Right? What happens when service churn right? How do you come to ensure the consistency of the data right I like to? Say Kafka does a great job of providing delivery guarantees. They're not for free. You have to kind of know what knobs turn and it's the double edged sword of Kafka Platform there's a lot of now to turn and they can be Kinda nine to live in one of the big things we have to deal with not only teach people build the right abstractions, but also onboard peeled the understanding how to build a security applications but also kind of let them know that you can't just point and producing consuming, get all the guarantees. All were right. There's some kind of making it notch needed turn to be able to do that. So I think in generally doing a better job of. Increasing the abstraction and understanding of the platform needs to be used and also given less knobs to turn was a particular challenge in and that we learned the next, we're thinking a lot about how we might use Kafka proxies to kind of bill the right abstractions out so that these teams have the billy tonight think about some of those nuanced details or distributed processing advocation and I end on this note, the beauty thing here is that going from a company that was heavily leveraged on ACP badge and then go to screaming it Kinda built the foundation I. Do some pretty magical things. Two of them being robinhood clearing, which we did a blog posts on, which was a pretty big feet honestly, technology perspective a lot of broken dealers take years and years to kind of develop the and we built that out in half the time the last team that did it, which I. Think was Van Gore did we did it in half the time but that is Kinda able to be able to be delivered because of the expertise that we built up on screen processing and then very similar same can be said and I think. There's a similar engineer impose related to the David late. Thanks to the kind of expertise that we had there. It really allow for the data team to build a robust data like allowed them to kind of execute an answer. The questions about the data I like to tell people were a data driven product driven engineering organization. So the ability I remember my previous job G. E.. So before I was a Robin Hood I was g they were dreams of talking about building a daily and it never happened into to come to robinhood bit of expertise screaming and to. have. The data team comet take those Lego blocks and built out of data. Lake is pretty magical and exciting. So that was a mouthful jeff hopefully, that was at the right level in detail there and I'm happy to go anywhere there. I'm quite sure the listeners are going to enjoy all of that and I think we should do a follow up show in the future because there's so many things I wanted to ask about that. We didn't get to I'm just going to close off with a simple question, which is what has been the hardest thing to build. Oh. So I think from two verticals I came to Robin. Hood in got the unique opportunity to solve two big problems that was take the company from batch to Sh- gaming into redesign the services service. Layer and honestly I didn't have a ton of expansion distributed systems. I remember the very first time I got exposed to distribute systems was a CD IT Koro S and this had to be twenty fourteen at strange Lupin in Saint Louis. The team was there and I got exposed to that and I was like, wow, just kinda knew that this would be the future naively and somewhat optimistically in reading about a distributed systems in the edge education, you would always see on twitter blogs of Discrimi- systems fell in these almost magical ways that thought And Yeah they do. Were you use it these kinds of fire cases and I've developed this middle model where I'm always asking how can these systems fell and how to build resilience applications to ideally resilient to them recover without operation over here but ideally do that. But in the minimal beaver alert when those edge cases occurs so that we can alert and kind of get people involving the right visibility. So the hardest thing was just really going from zero one. And, understanding distributed systems and what it took to kind of manage them not only in an academic sense but actually in a production since that would allow us to actually deliver this product to our customers and then secondly effectively doing exact same thing I was always kind of sheepish I had mostly engineers on the team was kind of expert networking and always sheepishly now, really understanding how DNS works to be worth and going from kind of. A million miles one, hundred, thousand feet, high level understanding of how network happens to be like, Oh, no, I need to understand all the nuances of how Dina's were and they don't understand how this works inside of Robinhood and then be able to design a system that would allow for the company the scale all while kind of dealing with imposter syndrome of not knowing either these technologies and I. Think the hardest thing for me was Skilling as engineer going from zero to one, and then quickly taking these things I read and concepts I learn, and then production is them in the way that really fit our robinhood infrastructure in a way. They could the delightful experience for our internal application owners and then ultimately our customers. So those two things with.
"robinhood" Discussed on Software Engineering Daily
"Why is the notion of time? So important for a trading company? No that's a really great question. I think is pretty important from a customer perspective from a relatively perspective our job is to. Ensure that we execute process orders in the order that they gave us in time is really helpful and allow us to do that, and usually in this context when I'm talking about time and talking about NTP. So what is NTP yeah in Teepee is the network time protocol that was developed over the last twenty years, and you kind of think of this network protocol is. For clocks? To happen in computer systems to mitigate the effect of network latency between that. So you can imagine a high level you have computers, computers be, and you might have atomic clock how to. Allows you to ensure that peters a which might be in Seattle and computers be which might be in Louisiana are all sinking or trending towards sinking to the atomic clock in Utah and wells have you had to learn about time standards and maintain equivalent time? Yeah. So I think a really great example here is bow six months. After join Robinhood, we got this regulatory notice call clock synchronisation. And as I said earlier, we have these as a broker dealer. We have government buys they ensure that we enforce this specific regulations on the firms, and this specific requests here was to ensure that our trading computers were seeking towards will recall nist atomic clocks and the nist. It's just I think National Institute, of standards, timing, which is a non regulating government body. That kind of insures that those atomic clocks as they say, great time. So for context talked about it, earlier time is super important for two reasons we WANNA make sure that we're complying with regulatory bodies but to we want to ensure that we process the trays and orders in order that we got that in. Our way that we can achieve that and the. Protocol in from a UNIX perspective into PD is the suffer Damian that runs on your UNIX based systems to ensure an implement that protocol, which is basically implementation if I, remember correctly of the. Five, nine, zero five. And this seems pretty straight for and I. Think the initial request is something that was pretty easy to do but I think this actually becomes pretty difficult in our environment because as you know Jeff Robin Hood is building of Aws, which is a cloud provider and actually keeping time and maintaining time in a dynamic con environment is slightly more complicated in physical hardware because of the just the dynamic nature of the infrastructure. To implement that particular constraint, we have to build a understanding of time inside the company because frankly at the time, no one really have a ton of core tease around in time and how it may or may not exist inside of a cloud provider. So actually one of the things I did was reached out to the Intifada Org people. Of blaming email them like hey. You have atomic clocks that masks the new standards we need to sink towards those and they were extremely helpful in answering, allow the nuance questions that had around NTP but more importantly, they willing dance those questionable, really direct and kind of telling us that, hey, if you sing all your computers to atomic clocks or we're going to cut you off and being your APP. So that was really interesting that I had to kind of I understand what was high in T- existence out of AWS was the software to implement it. So going from NTP, the Anti PD, and then how those things implemented inside of aws, and then I had to kind of work together to ensure that not only did we comply to regulation? We also were being good stewards and. Good partners to into pita or which is a pretty exciting opportunity, and then the unique things here is that also opportunity to if you can't imagine as infrastructure junior, my job is to building implement these technologies in constraints they meet deregulation, but also I got opportunity work with our general counsel right to make sure that we were translating understanding. The asked that was being asked a Robin Hood. And I was kinda deliver on offer and infrastructure. They kinda ensure that we met that requests. So different couple balls in the air that we have the juggle there but I was a pretty unique opportunity to take.
"robinhood" Discussed on Your Story or Your Life
"Young people. But with the game if occasion and the. The Bells and whistles going off in the balloons and the emojis and all the shit that goes into making it seem like fun with something. That's very serious. How is that not? A crime in itself because of fishing so many people. From the younger generation like millennials and Jesse's I don't know how old Jesse's are. Now Right now maybe twenty years old I don't know but they're bringing them in to the system and they're hoodwinking them thinking that investing is a game and it's making it really fun for them to get thumbs up emojis and balloons going off so on and so forth. That one young man. was. Really affected by it and took his own life because of option trading within the APP and what's option training option trading. In a nutshell, it's going money. It's like leveraging money that you don't have and getting. Getting that From a source like a casino spotty new hundred grand go play poker. Here's a hundred grand go play poker something like that. You're getting money for nothing and then you're trading end. You're seeing ups and downs and you would never have that money in the first place. No one would ever lynch you such a large amount of money to just start. Using the APP because. They are lending it to because the house always wins. Sure. Go ahead and borrow this by chance to sit chances are that you're going to be owing us and we are going to have you in debt prison. Now, in that option deal for the young man, he was like at a negative seven hundred and fifty thousand dollars and I. Believe it was over the weekend or before trading had started and he saw that he was in such a negative negative position and that just crushed his mind and his soul that's just how I see it. I can imagine that any young person who went through millennial training of You know how important they are and how special they are in. You know they they come in last place in the race they still get a trophy that. When the when the shit hits the fan and you see such a negative ounce, you take it personally that you did something wrong that you are stupid. And so this young man within a short period of. Time just valued that number in his in his life, his own life and he took his life. It's a very sad story. But WHO's at fault for that? And that's why bring it up. Because on one hand I say bitcon because you have a teenager who is could use his technology for starting his own business for doing digital marketing something to to benefit the world rather than steal from it in a possibly guiltless or shameless way. You have that and then on the other side of robinhood which is spearfishing. A lot of ways. Young people to get started in in investing as simple as. Downloading a game or playing Some sort of game that they're interested in like fortnight. The whole platform gamified I know that they are changing it or maybe they have changed it a little bit but how many people have been hurt by their process? I don't know who started robinhood haven't really thought about that but my guess is that. They're older than the people that most people that are using them. So I think they're being like Hoodwink, they're bean Gema. And thinking that it's fun when investing is very serious. And there's a reason why you have Wall Street guys in suits and old men with no smiles on their faces and. Millions of dollars in lose something they jump off out of building which has happened many many times. There's a reason for that stuff and when you're doing it in an APP. House at any different. You look at your position and. In this case, the young man's position was like a negative seven fifty and it just hadn't taken its course to update where the position might have been lost. That was a less significant but I don't believe that there servers had updated that information and I think he was looking at it on the weekend possibly. So if he had waited maybe forty eight hours may he would have been in a positive position maybe it would have been less of a negative position where he could have. Done something about it. I don't know but he saw that big number he attached that value to his life and He took it. He didn't. He didn't find that. He was worth anything and how how's that going to be for the future of impressionable young people who are raised on technology. So You got both sides of it. You got both sides of the Bitcoin or the coin, and I'm not sure if you can trade bitcoin on Robinhood, maybe you can but something to think about. Something to think about. So that's my connection. There is the. Act of spearfishing on big con and then Robinhood spearfishing convincing. Young impressionable people to use their APP. When they know that they don't have the experience and they can gamified. They can make it look look a whole lot of fun and that you're making a lot of money and I I'm assuming that's what people want to do at a young age because they see their icons like Mark Zuckerberg. For one of somebody WHO's made billions now when I was. That age like in the mid nineties and in college and stuff we didn't have anybody to look up to as far as being a billionaire because if they were they much older, there was no one of our generation that was just young and successful that that I can remember like that. So I. Think a lot of times they think that they should be like that. Then why don't they get there? They're just do why does it come very very quickly, which is why you would probably be trading options for money that you don't have on an APP that game of is it makes it look like a some sort of A. Video game like four, nine or something. What do you think? Do you think it's a crime for Robin Hood it's obviously a crime for the act the illicit act of spearfishing accounts. And gaining access to critical counts as in the twitter case, and then sending out false tweets. From. People on twitter and doesn't matter if they're famous or not you can't do that. So. Think about that. That's I think I think there's a some things to be learned there and I'm assuming that Robin Hood will change their methods I've read some about that. Again, I don't use the APP. But I just think that you can invest in. Much, better places a beef in in your own business, and if you have a business right now you're doing a product or service I'm happy to promote that for you. Check out my co Fi page comeback for more. And I think you for listening to your story or your life because it is this chip only sign off. Talk to you next time. Bye..
"robinhood" Discussed on Your Story or Your Life
"So you can be more of an insider into the shows and I can do promotions and mentions for the Biz. So think about it. Thanks for being here and You know let's get into the show because. I've got some topics here that I've been thinking about for a while been doing a lot of true crime on on both my podcast, but this subject or subjects has been. With me for a while just been thinking more about it how I wanted to present it to you and maybe get your take on it. So when you are part of my show, you can always. Do a comment or message. Maybe Tell me something I don't know because I. Don't know everything. You know I'm an author obviously a podcast hosted and I've got some ideas about stuff I'm more into stories and connections and with the top some coverage today Bitcon, and Robin Hood. I think there's something to be learned from it now if you haven't heard about, bitcon. It was something that happened recently and just preface this episode I am talking about teenagers. So I don't mention any names like you read stuff in the news and it's a teenager. It's pretty rare for them to mention their name if they're under eighteen years old sometimes, I'd do it if they are if it's like a federal case but. For me I try not to do that. So I'm talking about the subjects and forward thinking about what the future could be. But here we are with something called. Bitcon it went down recently where. A teenager you know. They all grew up on technology, and if you're like Gen xer older like myself I'm like I grew up in the genetics Erica yet cable TV and MTV knows about it but if you grew up. Previous to that or in more recent times like the millennial John's e obviously raised on technology. They know that stuff from back in to do something where you can have twitter accounts and you can spearfish into key employees at twitter to get access to the account dashboard, and then sent out tweets from some of the biggest names on twitter. That's impressive. At first of all, it's just incredible hacking but how do you do that? Well you know the kid that did it was seventeen years old. He recently got busted at went down in Florida. So he is subject to all the state regulations are in Florida and got some federal stuff on a two because of all the the fraud and. The stuff that involves. But how he went about it as through a method called spearfishing and you're familiar with fishing in email. So if you've got an email address. got a yahoo you're used to getting some. Messages where. They come from someone that you haven't. Known and and it's just there's a story. So who's ever got a story selling something and if you click on that link, it's going to do something to you via dot link like install PA malware back on your computer and allow us to do what they they do. So that's kind of a general of the overall idea about fishing but spearfishing is where you're making it personal and in this case of the twitter bitcon because the whole intention was to get bitcoin transactions. The young man did a spear phishing attack on twitter which was too key employee's I would say like maybe C. level executives. where? If you're making it personal in that communication, which would be like an email and that's coming from. Like a source like upper level management at it looks legit. There's logic to it and there's they know that they're not gonNA question it because it has to happen Arabs of superiority. Why would you question your upper level management about something? So they clicked on those links and that enabled the hacking to begin to get to the account dashboard and when those tweets were sent out, it was blue July fifteenth on a bunch of different accounts from. Think like Barack Obama and Jeff bezos Why would they ever send out tweets like this where? You could Exchange thousand dollars for two thousand dollars and. Why Why would you think that Jeff? Bezos the richest man the world would care about two and a tweet like that. But people click on that stuff they it's obviously a trusted source. There's no questioning that it's coming from twitter as a tweet and that it's a legitimate account that they follow from some of the biggest names in the world. But those tweets went and it was for. Like an offer of exchanging one thousand dollars for two thousand dollars Bitcoin. And the money went into another bitcoin address managed by the hacker over one hundred, thousand dollars in Bitcoin was. was made and it was quickly shut down so. In those types of situations the people who manage those accounts the big names that I mentioned they're probably gonNA notice those tweets within fifteen to twenty minutes. So you've got a limited amount of time to pull off the scheme. So on one hand we've got Bitcoin we've got a teenager who has the skills the ability to do something great with technology but. Turns it around and being a thief. And I don't know if there's any guilt or shame about somebody who is. A hacker that somebody who's doing things digitally and thinking that there's no one getting hurt in the process more stealing from such wealthy individuals or. Not Stealing from them directly but. You know what the platform is and that trust there. So I don't think on the the hacker side especially with a teenager who has got like a ideal about most seniors have an idea of more mortality that's very little. They don't understand mortality until they're older. So they do riskier things, but it's a crime nonetheless and it's a big crime. So. People are affected, people get hurt and I just wonder if the. The teenager or the people that do this. Really have any empathy or think that they're hurting anyone and it seems like they don't. So, we got the big CON. And then we've got the Robin. Hood. So this is the flip side of the technology in bringing up. Get bit calm I'm thinking about how the thief is going about the technology to to use a platform to manipulated to spearfish too well and. Get what they're after, which is which is. Now on the flip side of it, I think about the APP Robin Hood And you might have heard recently within the last three months four months I. think it was right around the start of whole coronavirus deal but. A teenager was using the Robin Hood up like most of them are he I will say that I don't know the age of the young man he might have been under twenty years old he might have been older but I know that he was like in the millennial range. So for robinhood APP that is their target, they have millions of users a good deal of a percentage of their users are of a younger age and what they do is they game by their APP I W- also prefaced by saying I've never used throughout by looked at screen shots I've read a lot about it but the whole process of investing. Getting, starting with investing is as simple as signing up for like an Uber Ride, they know that they're taking advantage of that Use of their interface that people are used to especially.
"robinhood" Discussed on Motley Fool Answers
"Some of these cheap stocks if you look at some of the the names on the top list of robinhood stocks like Gopro. Is a major robinhood. Stock Carnival. Cruise Lines I could. I would absolutely buy robinhood traders have had a big and moving those stocks, but as far as the entire stock market goes no I. Don't think Robin Hood. Traders had anything to do with the the sharp rise we saw. More, the market realized that we're avoiding a worst case scenario during the pandemic. Can you explain the hurt story to me because that's kind of a fascinating story, too? Speaking of robinhood investors coming together to do something reports of the hurt. Story I can't explain to myself. But. Having said that. If. You're really hurts. The car company are a car. Rental Company went declared bankruptcy. They hit a after. They declared bankruptcy. They hit a low of about forty cents a share on May. Twenty six at because of the Robin Hood community primarily. The shares soared by over a thousand percent at one point and hit a high of over five fifty on June ninth. This the bankrupt company the company specifically hurts itself, warned investors. If you buy shares, you will likely lose your money over one hundred seventy thousand. Robin Hood Investors. Now have hurts shares in their portfolio which have since dropped to about one forty five. So it, it's a bankrupt company that has no intrinsic value at this point whatsoever other than the small prayer. They might get some money out of bankruptcy proceedings It's just kind of goes to show you this. The herd mentality of robinhood investors that would put that much into essentially worthless security. Just because it's essentially the greater fool theory that that someone you know few days from now is going GonNa. Pay More than I did for this There's really no other reason those shares. Ja and do they does. Is that a trend? Do they like to buy beaten down? Stocks like carnival like buying a cruise line is a gutsy move right now right? Well, I mean when I look at the top ten robin hoods very transparent about the stocks investors own. That's one thing. I can't say about them. Compared to other brokerages. If you see other names that are really the, it's the low share price stocks that they're. Investors tend to focus on a Ford and GE or the number, one and two on on out of there's American Airlines as number three beatdown airline stocks. To hear some of the stocks that are widely owned by Robin, hood investors are good. long-term investment said Disney is number four apples among the top ten list. Microsoft is on the list. But the majority are these speculative names that. Trade trade in high volumes are very volatile lately, and for the most part very low share prices, so it's. It's easier for.
"robinhood" Discussed on Motley Fool Answers
"A stock on one certain day usually four times during the year, but if you're day trading in and out, you're not going to get those dividends. Those are actually the their great great explanations of why day trading is bad There's there's specific reasons why platforms like Robin Hood kind of encourage. You know uneducated traders to really make bad moves like that, but those are the. That's a great overview of why they drinks, not your favor. Yeah, and like just add like I don't WanNa make it sound like we're attacking Robin. Hood like Robin Hood is a tool and I. Don't know enough about it to say that they're a horrible tool, but they seem like you know a tool that you can use to invest, or it's a tool you can use today. Trade which we would argue is not the smartest move I guess. Should we should we be mashing? Robin Hood I. Don't know, should we? Just looking at the trading volume on most discount brokerage since they've eliminated commissions, all of them have gone up, so it isn't just people on Robin, hood, who have increased their trading? And are basically doing more trading rather than just buying stock and holding onto it for three five ten years. Rate with when I published an article about the mark. Cuban, comments about how this is like the dot com bubble I got a lot of pushback on how always bashing robinhood investors, and there's a big distinction here because we're not dash robinhood investors, it's traders that were we have an issue with if if someone wants to go on Robin Hood and buy a share of apple in hold it for the next fifty years. There's nothing wrong with that. That's a great vehicle to do that if you want to buy. Robin Hood less fractional shared, so if you wanted to say help, invest one hundred dollars in Amazon dot com, which wouldn't be practical with any other with most other brokers That's a that's a great use of robinhood the problem is. There's a lot of features of robinhood that kind of encourage short-term trading. give just a couple of examples real quick one. It's Robin Hoods Platform is very very lacking in educational resources when compared to say a TD Ameritrade and E. Trade or Schwab they're designed is a no frills trading platform, whereas if you log onto, say td Ameritrade..
"robinhood" Discussed on Stansberry Investor Hour
"Buying one dollar stocks, you could buy Jose Right. You buy one whole share on Robin Hood. So. That sort of inspired me to look around and I'd seen all the news. Stories already collected a few of them, and of course some of them do refer directly robinhood. There's a CNBC story, says robinhood traders cash in on the market comeback that billionaire investors missed. Now. That's that's clearly a provocative headline. I think I. Think this was probably placed. By the folks of Robinhood, they probably know somebody. It's the NBC and had this. Had this article placed as a as a promotional gimmick or something? It says. Millennial favored stock trading at Robin Hood so new investors piling into stay at home stocks in those beaten most beaten down by the economic shutdown like airlines, casinos and hotels, what twenty six year old Robin who trade fifteen hundred dollars less than twenty four hours a beaten down airline stock while while many so-called experts on Wall Street warned about. An overvalued stock market BLOB NOV KNOB NOV Nah. And, the guy's name was Godbolt Lequan Godbolt. Any bought a call option for American Airlines made him two hundred dollars on. The also on the hood. There's more of these and said that this Guy Godbolt. He says I started taking it seriously about two months ago. I've been watching Al American Airlines since the beginning of that time. I felt eventually once Kovin relaxed. The markets would move up. Okay, you know decent bed good for you. Maybe you are a bright young guy who doesn't have any money, and you're going to get going to become the next one off. It's starting out with the Robin, hood APP but. Look. Let me tell you I'll move on their. It gets worse, but I'M GONNA. There's there there's a worthwhile conclusion to draw from this. So the the next story is from the wall. Street Journal and it's got a clever headline. It says day traders by until it hurts spelled like the car rental company Hertz H Rtz. An and the sub headline says analyst politely reminded those bike shares of bankrupt rental car company hurts that it is worthless yes. Yes, folks when a company goes bankrupt. Ninety nine point nine nine percent of the cases. The equity loses one hundred percent of its value. It goes to zero and it is worthless. And stocks like Chesapeake. They've been talking about bankruptcy. I think they're going to do it and a bunch of other things that are absolute zeroes because they're bankrupt, including hurts Dave sword hundreds of percent in the past week or two here. And I don't know I mean maybe somebody's. Maybe there's a genius somewhere pushing this stuff up, but I think it's a bunch of people who have no clue what they are doing buying bankrupt stocks on Robin Hood and other places. It's an insane moment. It's it's it's akin to you. Know the it's actually worse than the DOT coms in nineteen ninety nine, because look if you bought one hundred of them. Some of them are now up. You know ten thousand fold or something right if you bought one hundred on one Amazon, that would probably amortize all the other losses and make you a ton of money. So that was a a reasonable speculation. I know people who do that exact same thing. Mining stocks, and they are Super Duper duper rich after a few decades in the market, so that at least made some amount.