(01-29-2021, 10:03 PM)homebiscuit Wrote: A retired hedge fund manager on the radio today said RH is doing this to stay in compliance with Dodd Frank. By law they must be able to cover their capitol obligations. If they can’t then they must block trades until they can secure the capitalization. Since they’re a small brokerage, they’re jumping through hoops right now.

It’s more complicated than I’m able to translate, but that’s the gist of it.

That's pretty much the case.  Robinhood is basically "the little guy" when it comes to investing.  While the idea and intention of the "app" is noble, it wasn't thought through and backed well enough.  I suspect that they won't be going public anymore after this whole fiasco.

(01-29-2021, 10:11 PM)StroudCrowd1 Wrote: Blocking trades only on shorted stocks? Sounds like that guy on the radio is part of the Wall Street swamp. Not buying it.

At least try to make an attempt to get your facts straight.  Whether or not a stock was shorted isn't the reason trades were blocked/limited.  It all has to do with volatility and volume.

(01-31-2021, 03:11 PM)StroudCrowd1 Wrote:

(01-31-2021, 03:08 PM)The Real Marty Wrote: I am a capitalist.  I believe in capitalism.  And I know that when the "little guy" takes on "the big guy" as in the case of Gamestop, the little guy will be annihilated.  As he/she should.  The sooner the better, as a lesson to all the other little guys who think they can take on the big guys.

I don't think this will end the way you see it. The way hedge funds short stocks has changed forever. The battle is just beginning.

Not really.  If I wanted to bet I would guess that many hedge funds probably have short positions in Gamestop right now, and in they end they will win.  The company makes about as much as Carnival does right now.

I know that you won't take my advice but I'll give it anyway.  NEVER, EVER trade stocks on emotion or a "gut feeling".  When the bottom fell out there is a reason why I chose to purchase Boeing rather than Carnival.  There is also a reason why I tend to not buy individual stocks and look at industries instead.  My ride with tech seems to be slowing a bit, and I have my eye on a few other sectors instead.

---