Adventures of RobinHood (building a financial bunker) - Page 2 - Survivalist Forum
Survivalist Forum

Advertise Here

Go Back   Survivalist Forum > >
Articles Classifieds Donations Gallery Groups Links Store Survival Files


Notices

Financial Forum Economics and Precious Metals

Advertise Here
Similar Threads
Thread Thread Starter Forum Replies Last Post
World Trade Center - 15 years - Who did it? Levant Controversial News and Alternative Politics 8493 11-25-2019 12:50 AM
Complete List Living off the Grid Grifters Wilderness Survival, Hiking and Camping Forum 150 10-16-2018 09:56 PM
Moving to Tonga to live on an uninhabited island. Kaizen Farming, Gardening & Homesteading 54 01-22-2018 01:42 AM
Move in ready for someone here. Some ideas for the rest of us.. SoTru DIY - Do It Yourself 14 12-14-2016 05:47 AM

Reply
 
Thread Tools Display Modes
Old 08-03-2018, 09:36 AM
Fermion Fermion is offline
Hunter
 
Join Date: Sep 2012
Posts: 1,138
Thanks: 121
Thanked 1,607 Times in 620 Posts
Default



Advertise Here

Quote:
Originally Posted by spameggsbaconandspam View Post
Yes but none of that is any different from what other brokers do who also charge money for each trade in addition to the things above (except making money on your cash balance, which is a trivial amount in this low interest rate environment...what, about a buck or three a year on a $2,000 account?)
Quick reply to this message
Old 08-03-2018, 09:39 AM
spameggsbaconandspam's Avatar
spameggsbaconandspam spameggsbaconandspam is offline
Survivor
 
Join Date: Dec 2011
Location: Tampa, FL
Posts: 4,586
Thanks: 7,219
Thanked 11,407 Times in 3,677 Posts
Default

I didn't claim otherwise.
Quick reply to this message
Old 08-03-2018, 09:47 AM
PalmettoTree PalmettoTree is offline
Survivor
 
Join Date: Dec 2012
Posts: 13,288
Thanks: 2,678
Thanked 17,900 Times in 7,501 Posts
Default

Quote:
Originally Posted by Fermion View Post
At first I thought this too but upon further examination, comparing the trade execution and bid/ask to my larger E-trade account, I am not sure exactly how they make money.

I have found that my trades on Robinhood execute equally as fast as my trades on E-trade (within seconds). If a stock is trading at a bid/ask of $41.90/$42.05 I have been able to grab shares on Robinhood for $41.95 while on E-trade sometimes my order will sit open at $41.95 and not fill for minutes.

Now it could be that E-trade is also making a lot of money off the spreads while still charging commissions too (they probably are) in which case it doesn't make sense to use them over Robinhood.

Except E-trade user interface is quite a bit better than Robinhood. Robinhood interface feels like 2 software guys working in a garage in India.

Still, totally free trading with fast execution at the price I want...go India!

Now how do I really think Robinhood is making money? I believe they are not making money. I think their goal is to grow their client base to such a point that they become annoying to E-trade and other bigger discount brokers such that they are bought out to remove them from the market. Etrade already did this with the deep discount broker OptionsHouse, which I used to use.
It is my understanding Robinhood requires access to your bank accounts. Money is withdrawn immediately upon you executing a buy but settlement is in 3 days. The reverse is true on sell orders therefore when you sell it might be 3 days before you can buy with those funds.

Plus Robinhood charges a premium on margin buys.

I am not a Robinhood customer so I might be wrong.

I do know on all my Ameritrade I can sell then buy with that money immediately. It is only withdrawals that require a settlement period. Even that is not the case if there is a cash balance which I almost always have in one of my accounts.

I did screw myself one time.
Quick reply to this message
Sponsored Links
Advertisement
 
Old 08-03-2018, 12:05 PM
Fermion Fermion is offline
Hunter
 
Join Date: Sep 2012
Posts: 1,138
Thanks: 121
Thanked 1,607 Times in 620 Posts
Default

Quote:
Originally Posted by PalmettoTree View Post
It is my understanding Robinhood requires access to your bank accounts. Money is withdrawn immediately upon you executing a buy but settlement is in 3 days. The reverse is true on sell orders therefore when you sell it might be 3 days before you can buy with those funds.

Plus Robinhood charges a premium on margin buys.

I am not a Robinhood customer so I might be wrong.

I do know on all my Ameritrade I can sell then buy with that money immediately. It is only withdrawals that require a settlement period. Even that is not the case if there is a cash balance which I almost always have in one of my accounts.

I did screw myself one time.
Nope not how Robinhood works. You can buy with unsettled funds immediately after selling. There is a limit per 5 day period on how many times you can buy/sell the same stock the same day but that is a FTC rule not a Robinhood rule. If you have more than $25,000 in an account you can bypass this FTC rule.
Quick reply to this message
Old 08-03-2018, 12:20 PM
NickTheGreat NickTheGreat is offline
Hunter
 
Join Date: Nov 2012
Location: Middle America
Posts: 1,301
Thanks: 816
Thanked 1,965 Times in 769 Posts
Default

Quote:
Originally Posted by spameggsbaconandspam View Post
Thank you. That answers my question fully.
Quick reply to this message
Old 08-03-2018, 04:15 PM
PalmettoTree PalmettoTree is offline
Survivor
 
Join Date: Dec 2012
Posts: 13,288
Thanks: 2,678
Thanked 17,900 Times in 7,501 Posts
Default

Quote:
Originally Posted by Fermion View Post
Nope not how Robinhood works. You can buy with unsettled funds immediately after selling. There is a limit per 5 day period on how many times you can buy/sell the same stock the same day but that is a FTC rule not a Robinhood rule. If you have more than $25,000 in an account you can bypass this FTC rule.
OK my info was old and thirdhand.
Quick reply to this message
Old 08-05-2018, 08:26 AM
da_wanderer da_wanderer is offline
Hunter
 
Join Date: Dec 2009
Location: East of Atlanta
Posts: 1,203
Thanks: 101
Thanked 2,238 Times in 700 Posts
Default

How can they remain in business if they are not making money somehow?

I thought about giving Robinhood a try, but I cannot see them lasting very long without some kind of revenue.
Quick reply to this message
Old 08-05-2018, 04:29 PM
spameggsbaconandspam's Avatar
spameggsbaconandspam spameggsbaconandspam is offline
Survivor
 
Join Date: Dec 2011
Location: Tampa, FL
Posts: 4,586
Thanks: 7,219
Thanked 11,407 Times in 3,677 Posts
Default

Quote:
Originally Posted by da_wanderer View Post
How can they remain in business if they are not making money somehow?

I thought about giving Robinhood a try, but I cannot see them lasting very long without some kind of revenue.
I've stated how they are paid and provided a link.
Quick reply to this message
Old 08-28-2018, 11:16 AM
Fermion Fermion is offline
Hunter
 
Join Date: Sep 2012
Posts: 1,138
Thanks: 121
Thanked 1,607 Times in 620 Posts
Default

Ok, so here is my update. I have mostly been trading in Merck and Geron. Geron recently spiked from the high $3 area to low $5 area when J&J made a job posting in Europe for a position marketing the drug that Geron and J&J are collaborating on. This caused the stock to go haywire on speculation of a early approval in Europe or at least that J&J will continue the partnership. $6 to $10 is a reasonable expectation on continuation of partnership.

So I have about $3640 in the account now, or a $1140 gain on the initial $2500. That is a gain of over 45%!

Remember, to reach $250,000 in 10 years from an initial start of $2500, you "only" need a 60% gain each year. :-)
Attached Thumbnails
Click image for larger version

Name:	rhaug28.jpg
Views:	54
Size:	34.8 KB
ID:	277248  
Quick reply to this message
Old 08-28-2018, 02:42 PM
Jerry D Young's Avatar
Jerry D Young Jerry D Young is offline
www.jerrydyoung.com

 
Join Date: Apr 2007
Location: Reno, NV
Age: 66
Posts: 12,059
Thanks: 15,103
Thanked 62,610 Times in 8,963 Posts
Awards Showcase
Outstanding Thread 
Total Awards: 1
Default

Do you happen to know if the new crypto trading includes Quintric?

Thank you.
__________________
Jerry D Young
Quick reply to this message
Old 08-28-2018, 05:29 PM
PalmettoTree PalmettoTree is offline
Survivor
 
Join Date: Dec 2012
Posts: 13,288
Thanks: 2,678
Thanked 17,900 Times in 7,501 Posts
Default

Quote:
Originally Posted by Fermion View Post
Ok, so here is my update. I have mostly been trading in Merck and Geron. Geron recently spiked from the high $3 area to low $5 area when J&J made a job posting in Europe for a position marketing the drug that Geron and J&J are collaborating on. This caused the stock to go haywire on speculation of a early approval in Europe or at least that J&J will continue the partnership. $6 to $10 is a reasonable expectation on continuation of partnership.

So I have about $3640 in the account now, or a $1140 gain on the initial $2500. That is a gain of over 45%!

Remember, to reach $250,000 in 10 years from an initial start of $2500, you "only" need a 60% gain each year. :-)
Post again when you hit a week with $3,500 average earnings per day.
Quick reply to this message
Old 08-28-2018, 07:18 PM
Fermion Fermion is offline
Hunter
 
Join Date: Sep 2012
Posts: 1,138
Thanks: 121
Thanked 1,607 Times in 620 Posts
Default

Quote:
Originally Posted by PalmettoTree View Post
Post again when you hit a week with $3,500 average earnings per day.
It will be a long while until I have a $17,500 gain in a one week period considering I started the account with only $2,500 total. Why do you bring up this particular figure?
Quick reply to this message
Old 08-28-2018, 09:31 PM
spameggsbaconandspam's Avatar
spameggsbaconandspam spameggsbaconandspam is offline
Survivor
 
Join Date: Dec 2011
Location: Tampa, FL
Posts: 4,586
Thanks: 7,219
Thanked 11,407 Times in 3,677 Posts
Default

Fermion, what drives your decisions to buy and sell?
Quick reply to this message
Old 08-28-2018, 09:42 PM
PalmettoTree PalmettoTree is offline
Survivor
 
Join Date: Dec 2012
Posts: 13,288
Thanks: 2,678
Thanked 17,900 Times in 7,501 Posts
Default

Quote:
Originally Posted by Fermion View Post
It will be a long while until I have a $17,500 gain in a one week period considering I started the account with only $2,500 total. Why do you bring up this particular figure?
Stick with what works but with caution. Sooner or later every the big boys see the "good idea" trading trend and muck it up. Protect your capital.
Quick reply to this message
Old 08-28-2018, 10:24 PM
Fermion Fermion is offline
Hunter
 
Join Date: Sep 2012
Posts: 1,138
Thanks: 121
Thanked 1,607 Times in 620 Posts
Default

Quote:
Originally Posted by spameggsbaconandspam View Post
Fermion, what drives your decisions to buy and sell?
Profit.

No, but seriously in the stocks I have been trading (biotech), I look for selloffs that are overdone, either because the flock is running from bad news that isn't really that bad or short sellers are spiking the price down. I sell when good news hits, or is about to hit. I miss a lot of the highs but I also don't end up holding for years trying to make an extra nickel.
Quick reply to this message
Old 08-28-2018, 10:40 PM
PalmettoTree PalmettoTree is offline
Survivor
 
Join Date: Dec 2012
Posts: 13,288
Thanks: 2,678
Thanked 17,900 Times in 7,501 Posts
Default

Quote:
Originally Posted by Fermion View Post
Profit.

No, but seriously in the stocks I have been trading (biotech), I look for selloffs that are overdone, either because the flock is running from bad news that isn't really that bad or short sellers are spiking the price down. I sell when good news hits, or is about to hit. I miss a lot of the highs but I also don't end up holding for years trying to make an extra nickel.
Invest in what you know and understand. Biotech is out of my league.
Quick reply to this message
Old 08-30-2018, 04:20 PM
francessanne francessanne is offline
Survivor
 
Join Date: Oct 2014
Location: on the mountain in NJ
Posts: 2,007
Thanks: 1,545
Thanked 2,671 Times in 1,133 Posts
Default

every time i try to read robinhoods comission/fee schedule it moves me off of that page to a page that doesnt load...something is fishy
Quick reply to this message
Old 09-02-2018, 11:06 AM
Fermion Fermion is offline
Hunter
 
Join Date: Sep 2012
Posts: 1,138
Thanks: 121
Thanked 1,607 Times in 620 Posts
Default

Closing out August I reached near $3800 in the account, or a gain of $1300 on my initial $2500 investment in just a two month period.

That is a full ounce of gold boys and girls! And I didn't have to sit in a river and pan (although I rather like doing that).

If I were not trying to reach $250,000 I would actually just pull the money out to buy an ounce of gold each time it hit that mark but I need the compounding and gold doesn't do that. I do love the shiny though.

Lets try for a double this year, which would put me ahead of the 60% gain I need to be on track to turn $2500 into $250,000 in 10 years.
Attached Thumbnails
Click image for larger version

Name:	rhaug31.jpg
Views:	46
Size:	38.5 KB
ID:	277404  
Quick reply to this message
Old 09-16-2018, 10:13 PM
spameggsbaconandspam's Avatar
spameggsbaconandspam spameggsbaconandspam is offline
Survivor
 
Join Date: Dec 2011
Location: Tampa, FL
Posts: 4,586
Thanks: 7,219
Thanked 11,407 Times in 3,677 Posts
Default

Interesting read on how Robinhood makes money.

https://seekingalpha.com/article/420...quency-traders
Quick reply to this message
Old 09-16-2018, 11:35 PM
PalmettoTree PalmettoTree is offline
Survivor
 
Join Date: Dec 2012
Posts: 13,288
Thanks: 2,678
Thanked 17,900 Times in 7,501 Posts
Default

Quote:
Originally Posted by spameggsbaconandspam View Post
Interesting read on how Robinhood makes money.

https://seekingalpha.com/article/420...quency-traders
Thanks, I knew there was a catch. I think when I first looked at them they wanted access to bank accounts which stopped me on the spot.

The link explains a lot.
Quick reply to this message
Reply

Bookmarks



Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Survivalist Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:
Gender
Insurance
Please select your insurance company (Optional)

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 01:33 AM.


Powered by vBulletin®
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Search Engine Optimisation provided by DragonByte SEO (Lite) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Copyright © Kevin Felts 2006 - 2015,
Green theme by http://www.themesbydesign.net