Robinhood Backs Up Buddies With GameStop and AMC Halts
Time to get rid of Robinhood for good.
Ironically, the app that was designed to democratize investing with a "free trading for all" approach has failed its users. This is a rigged game and the big fish will always have control, no matter how many rocket ships you post. I think it's important to recognize the fact that this is just a game and we're PRIVILEGED to be able to play. Please don't gamble away your winnings, be smart. This game is about lasting in the market.
So what's happening?
Citadel is an investor in Melvin Capital, which got crushed by WallStreetBets. Citadel is also Robinhood's biggest customer, receiving 40% of revenue from them through payments from execution services for directing equity order flow. It's no surprise that they are shoving their foot down people's throats here, and this is this is supposed to be a free market. As if.
Robinhood keeps restricting meme stocks and heavily shorted stocks like American Airlines, GameStop, AMC and now Sundial. Brokerages are preventing retail from buying in order to allow their hedge fund buddies to recover their losses. It's market manipulation and completely absurd that this is happening. These hedge fund managers will openly go on channels like CNBC and purposely attack a stock, hoping it will trigger people to sell while they profit on their short position.
When Reddit users do it, it's a crime!
If we really want things to change, we need to challenge congressional leaders into looking at clearing firms. Clearing brokers' handle buy and sell orders but also maintain custody of account owners' securities and other assets. Aside from clearing brokers, other types of broker-dealers do not have the authority to clear transactions.
We need to flip the script and the rules. Otherwise, get used to this.
One more thing: PROTECT YOUR CAPITAL AND ACCOUNT. Volatility like this can make or break your account. If you wanna gamble, either reduce your size or head to the blackjack table.
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