|
|
Post by chirpchirpcards on Jan 18, 2021 16:56:48 GMT -6
My buddies gamble with sports betting, but I've decided to go a different route. I downloaded Robinhood and am going to do a little investing. So who's got that sweet sweet insider information for me?
|
|
|
|
Post by JacksonStreetElite on Jan 18, 2021 17:25:43 GMT -6
My buddies gamble with sports betting, but I've decided to go a different route. I downloaded Robinhood and am going to do a little investing. So who's got that sweet sweet insider information for me? If you don’t know what you’re doing and don’t have a high risk tolerance you should be looking at index funds and ETFs. If you do have a high risk tolerance look at cryptocurrency. I dont have the first clue how all that works but the returns are astounding. I had a buddy try to convince me to buy bitcoin like 10 years ago. He now owns land on the pacific coast of Chile while I am commuting like a chump. Be prepared to lose anything you put in crypto. |
|
|
|
Post by 00hmh on Jan 18, 2021 19:46:43 GMT -6
You are right to look for insider info.
Oh, there is the little matter of trusting your source...
|
|
|
|
Post by villagepub on Jan 18, 2021 20:43:54 GMT -6
Anyone stupid enough to share specific insider information on a sports message board certainly has a propensity to wear orange.
|
|
|
|
Post by chirpchirpcards on Jan 18, 2021 20:52:51 GMT -6
Anyone stupid enough to share specific insider information on a sports message board certainly has a propensity to wear orange. It was 100% a joke. I wouldn't trust the insider information from anyone on this board anyway! You're all Ball State fans, so clearly your judgement is impaired beyond reason!  |
|
|
|
Post by chirpchirpcards on Jan 18, 2021 20:56:39 GMT -6
My buddies gamble with sports betting, but I've decided to go a different route. I downloaded Robinhood and am going to do a little investing. So who's got that sweet sweet insider information for me? If you don’t know what you’re doing and don’t have a high risk tolerance you should be looking at index funds and ETFs. If you do have a high risk tolerance look at cryptocurrency. I dont have the first clue how all that works but the returns are astounding. I had a buddy try to convince me to buy bitcoin like 10 years ago. He now owns land on the pacific coast of Chile while I am commuting like a chump. Be prepared to lose anything you put in crypto. I remember trying to use the parents computer to mine bitcoin back when that shit first popped up on the internet. I tried for about two days to figure it out and get it to work in the background, and then got bored and gave up. I shudder to think what I'd have right now if 1) I'd actually figured it out and 2) I'd held onto any bitcoin I managed to gain. Oh well, I'd have probably blown it all on hookers, blow, and Ball State football |
|
|
|
Post by Lurkin McGurkin on Jan 19, 2021 7:15:36 GMT -6
I've been kicking it around as well, with this stimulus cash they keep throwing at us. Looked at Robinhood, but I'm wondering where they make their money? EDIT: Found this...interesting: www.investopedia.com/terms/p/paymentoforderflow.aspMy brother got his broker's license years ago but didn't stick with it. Might have to do with the fact that he got his license on Sept 10, 2001. No, I'm not kidding. His timing has always sucked. |
|
|
|
Post by sweep on Jan 19, 2021 10:28:49 GMT -6
Robinhood makes money by upselling a premium service to it's customer base. The problem with Robinhood is since you will likely be purchasing fractional shares you will not be able to transfer your holdings to a more traditional brokerage in the future. It is designed for smaller first time investors. My guess is it's okay to dick around with and get your feet wet.
|
|
|
|
Post by sweep on Jan 19, 2021 10:42:53 GMT -6
If you don’t know what you’re doing and don’t have a high risk tolerance you should be looking at index funds and ETFs. If you do have a high risk tolerance look at cryptocurrency. I dont have the first clue how all that works but the returns are astounding. I had a buddy try to convince me to buy bitcoin like 10 years ago. He now owns land on the pacific coast of Chile while I am commuting like a chump. Be prepared to lose anything you put in crypto. I remember trying to use the parents computer to mine bitcoin back when that shit first popped up on the internet. I tried for about two days to figure it out and get it to work in the background, and then got bored and gave up. I shudder to think what I'd have right now if 1) I'd actually figured it out and 2) I'd held onto any bitcoin I managed to gain. Oh well, I'd have probably blown it all on hookers, blow, and Ball State football No one made money bit mining on a home computer, so don't feel too bad. The groups who were profitable had huge computer set-ups that mined millions of transactions a day. A few years ago there was a huge spike in the price of computer graphics cards caused by bit miners cleaning up the built up available inventory. Look up a stock price graph of card maker NVDA to see the result on earnings. |
|
|
|
Post by Lurkin McGurkin on Jan 19, 2021 11:39:54 GMT -6
Robinhood makes money by upselling a premium service to it's customer base. That may be, but it's not their primary source of revenue. Their primary source of revenue is that they use uninvested money in users' account to make loans to generate interest. Yeah, you heard me right. They lend out YOUR money. Their other primary revenue stream is that they direct their buys to "market makers" in exchange for cash. The problem is, these market makers may not give the best price, because they have to make their profit/pay their bills. So you end up paying a premium for stocks that you could get elsewhere for less, although you might have to pay a transaction fee. It's not bad for small potatoes, but if you're normally trading amounts in the 6 figures on one transaction, you'd get a better deal elsewhere. And I don't like letting someone use my money for nothing. |
|
|
|
Post by 00hmh on Jan 19, 2021 13:14:03 GMT -6
If you're making 6 figure trades regularly, you don't need Robinhood.
Bitcoin is fun, I don't mind having 10% in it, but making 6 figure moves is too rich for my blood.
I am too old and tired to enjoy really active or high stakes trading any more.
|
|
|
|
Post by sweep on Jan 19, 2021 13:32:46 GMT -6
Robinhood makes money by upselling a premium service to it's customer base. The problem is, these market makers may not give the best price, because they have to make their profit/pay their bills. Market makers are required by law to match the current best bid or ask. They can't charge an arbitrary price, regardless of their cost. As-far-as investing cash in accounts, all companies work the float. |
|
|
|
Post by Lurkin McGurkin on Jan 19, 2021 13:53:26 GMT -6
The problem is, these market makers may not give the best price, because they have to make their profit/pay their bills. Market makers are required by law to match the current best bid or ask. They can't charge an arbitrary price, regardless of their cost. As-far-as investing cash in accounts, all companies work the float. Whenever they get around to it, after filling orders from their top-shelf clients. But yes, all of the online firms are taking money anywhere they can get it. Also, interestingly enough, from data mining. It just seems shady. But if everyone's doing it, pick your poison. |
|
|
|
Post by sweep on Jan 19, 2021 14:14:38 GMT -6
Market makers are required by law to match the current best bid or ask. They can't charge an arbitrary price, regardless of their cost. As-far-as investing cash in accounts, all companies work the float. Whenever they get around to it, after filling orders from their top-shelf clients. Eeek........No frontrunning is illegal and all trades are timestamped both when directed and then again when executed. It all goes first come first served. Besides in this situation the trades are so small no one is going to make money by letting them sit around unexecuted. Robinhood may indeed have a pay-to-play arrangement but your executions will be at the inside quote. |
|
|
|
Post by Lurkin McGurkin on Jan 19, 2021 14:36:54 GMT -6
Eeek........No frontrunning is illegal and all trades are timestamped both when directed and then again when executed. It all goes first come first served. Besides in this situation the trades are so small no one is going to make money by letting them sit around unexecuted. Robinhood may indeed have a pay-to-play arrangement but your executions will be at the inside quote. You seem to know something about this. So what's the catch with Robinhood getting kickbacks from market makers? |
|
