It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Tengler’s seen that kind of thing more often, lately -- reactions that seem out of proportion to underlying news. It’s a shift in the market’s usual volatility backdrop that gives her pause, even when it works in her favor.
“I could not for the life of me explain why it was up 26% after a 3 or 4 percent move the day before,” Tengler said. “It is inexplicable to me how some of these names have run up on almost no news. And so you have to factor in the Robinhood cohort who tend be chasing a lot of these names and driving them up further.”
Jason Goepfert, president of Sundial Capital Research, says that while SoftBank may be the biggest player, it can’t be just one firm whipping up markets. Small day traders have spent $40 billion in call premiums in a month, data he compiled from the Options Clearing Corp. show. That’s a hefty amount for retail investors to be wielding and dwarfs what SoftBank is reported to have spent.
“Softbank as a call buyer makes sense, as does the underlying buying it generates. But trades less than 10 contracts swamped the rumored Softbank buys, so clearly others were trying to tag along for the ride,” Goepfert said. “Not sure why now versus other years, other than stay-at-home boredom. Maybe the retail crowd saw this as their last, best change to get rich quick.”
originally posted by: Ksihkehe
a reply to: SleeperHasAwakened
Back in the late 90's or early 2000's, to be honest it's all kinda a complete blur but I think it was 98 or 99. I answered a job ad in south Florida and it led me to a commodities brokerage. I took a few weeks of classes and I was, I believe, the only one that passed the series 3 exam in my class.
That exam gave entry into the company. The mentality there was one of absolute sociopathy. I asked when I started if I could actually sell gold and silver futures instead of the company favorite oil futures. At the time silver was below $5 and I was convinced it was a good investment. They said I could, but they were feeding us oil futures propaganda so it wouldn't be smart to go against the grain.
If I wasn't a dumb youth I would have contacted the FBI and turned on them. Instead, after two weeks, I quit and ran back to Maine. Years later I looked them up and discovered the DOJ eventually charged the principals of the firm. They had been dodging enforcement by changing the principal owner every time the law caught up with them. The fines were crazy.
Those people hated their clients and sought only to exploit them. While there are many people out there that want to help clients make money there are also vultures that only want to make money. I would not be at all surprised if some of the garbage people I worked with there later got into the mortgage scams of the 2000's. Absolute scum that would eagerly screw whoever they could for a quick 100k.
Until the US government ends the policy of bailing out terrible institutional finance disasters this will never change. It's trickle-down corruption. The highest levels are corrupt, which enables lower level grifters to make money. The institutional finance sector continues to pay these grifters because in the end, when the chickens come home to roost, the taxpayers pay the institutional finance sector via the government.
originally posted by: TXRabbit
I've been using Robinhood for a couple of years now and I enjoy it. I didn't sign up as a base for retirement investments but more of a sandbox to see if I have any skills at researching stocks and predicting a good investment. (SPOILER ALERT: I don't)
For those not familiar with the app, it goes something like this.
You link a funding source (checking account for example) to Robinhood and transfer money to your account there. There is no minimum balance required.
With a free, Basic account, your money sits in your RH account for a few days.
Once cleared, you can buy stocks based on your available balance and monitor performance real time both during market hours and after-hours.
When you buy a stock, it's not necessarily purchased at the price you see but at the best available price when the trade was initiated. This can be confusing to many and has bitten me a couple of times.
When you sell a stock, again it's at the next price available which isn't always indicative of what you see in the app.
You can negate these price confusions by using LIMIT orders, where you set the price (per share) to buy or sell a stock.
For shares sold, the money is marked as "pending" towards your balance for a cycle of usually about 3 business days iirc. After that time, it will be available to withdrawal or to buy other shares. I'm guessing that during this hold-time there is interest being earned by Robinhood on those funds, which would make sense.
Now....for a PREMIUM account (and I'm making some assumptions here as I don't use this level of service)
You pay a monthly fee which enables you to "day-trade". Funds are immediately available after seeding your account from a source account and from sales of stocks you own. You also have access to fractional-shares which is a good way to "get a piece of the pie" from larger stocks like Amazon, Google, Apple etc. I'm not entirely sure how those work
All in all it's been a fun experience watching some funds go up and not so fun watching some go down but hey, that's the nature of investing.
originally posted by: 38181
Ally is another ok one. But I sleep better knowing land doesn’t tank.
a reply to: SleeperHasAwakened
To be sure, financial markets have long rewarded misery-enhancing outcomes.
Bad news for a firm’s workers – planned layoffs, for example – is often good news for its shareholders.
But when the bad news engulfed most workers simultaneously, equity markets always fell, owing to the reasonable expectation that, as the population tightened its belt, all income, and thus average profits and dividends, would be squeezed.
The logic of capitalism was not pretty, but it was comprehensible.
There is no capitalist logic to the developments that culminated on August 12.
For the first time, a widespread expectation of diminished revenues and profits led to – or at least did not impede – a sustained buying frenzy in London and New York.
And this is not because speculators are betting that the UK or the US economies have hit bottom, making this a great time to buy shares.