He doesn’t understand the interface nor option position nor trading platform. A vertical spread has limited loss. Any option trading account is a margin account. Anyhoo his profile shouldn’t be able to get higher than level 1. RH is eager, giving him level 3.
‘It’s like trying to beat the casino’ — Rookie trader turns $15,000 into $1 million, then loses almost everything
He started out by funding his account with $15,000 in credit card advances and then took out another two $30,000 home-equity loans as he continued to lose money early. His luck changed this year, and his account value skyrocketed about $1 million in a matter of months.
Then it all fell apart — his account value this week: $6,956.
Beginners Luck in play?
Idiot. He’s an options day trader that over allocated. Any experienced trader will tell you that you need to limit the percent of your portfolio that’s options. Just because you trade options doesn’t mean put 100% of your money in options.
An online brokerage that helped usher in an investing revolution faces a number of new threats. Where does it go from here?
I’ve joked more than once at work. The last thing any company should want to hear is financial innovation. Finance should NOT be the innovative department.
They’re in a death spiral now.
They deserve to die off
Robinhood started nicely, but their user interface went wrong way, and questionable scalability issue.
One good thing Robinhood forced all brokers provide free trade on stocks/etfs.
@Jil why do you think UI went wrong way?
I was using it since beginning till 2020. Initial days easy place or cancel it .
After 2020 or around that period , UI is not usable any more, easy to place orders but hard to cancel.
Resulted lot of people ( retailers ) loss during 2020 recessionary drop.
Around the same time all brokers matches zero trade fee for stocks.
Many left Robinhood finally and I also closed account (slight profit ).
There after no more Robinhood.
Their spread was always high. They do not have YTD % or amount.
They did not scale properly after IPO to match other brokers.
When fees are zero with other brokers, fidelity and Schwab ranks best for usage as their spread is low and reliable,
That point Robinhood dies.
Agree Have accounts in both + eTrade + Vanguard.
They don’t even offer retirement accounts. For most Americans, that’s where most of their savings is.