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Day Trader Wins Suit Against Robinhood


Parsad

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https://www.marketwatch.com/story/a-27-year-old-truck-driver-just-became-robinhoods-first-big-headache-of-2022-11641856157?siteid=yhoof2

 

“I’m definitely going to continue to trade,” said Batista, who maintains a vestigial Robinhood account but now mostly trades on a competing app, Webull. “These aren’t meme stocks to me. I just watch the momentum. I’ll take 10 stocks and watch throughout the day.”

 

Somehow I think this guy is going to lose money on his portfolio at Webull too!  Cheers!

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2 hours ago, Parsad said:

https://www.marketwatch.com/story/a-27-year-old-truck-driver-just-became-robinhoods-first-big-headache-of-2022-11641856157?siteid=yhoof2

 

“I’m definitely going to continue to trade,” said Batista, who maintains a vestigial Robinhood account but now mostly trades on a competing app, Webull. “These aren’t meme stocks to me. I just watch the momentum. I’ll take 10 stocks and watch throughout the day.”

 

Somehow I think this guy is going to lose money on his portfolio at Webull too!  Cheers!

 

Then he'll write a book on trading! Maybe start a trading blog.

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Fascinating.  So, the implication is that because trading in a particular security was restricted for a brief period of time, the value of that security was permanently destroyed and therefore a compensatory payment required.  We now have a new legal principle: value delayed is value denied.

 

 

SJ

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4 minutes ago, hillfronter83 said:

Now do IB when they restrict your trading when they think you are "affiliated" with the issuer.

 

This one is so annoying at IB.  It is totally inconsistent - for the same client they will let you trade in one account and not in another.  Same SSN and account owner.  They want you to prove you are unaffiliated like every two weeks or some nonsense like that.

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Here's an article about a "decade trader" who has "one of the greatest long-term track records in the history of investing":

https://archive.is/iL2Cs#selection-4877.55-4895.145

 
Quote

 

Over the past 15 years, Central’s annualized portfolio turnover rate has averaged 11%. That means it holds its typical stock for nearly a decade—roughly six times longer than the average active mutual or closed-end fund, according to Morningstar.
Owning stocks for years, rather than months, minimizes the costs of trading, reduces the burden of researching new holdings and enables Central to burrow deeply into understanding a business.
“We want to own growing companies during as much of their period of growth as we can,” says Mr. Kidd. That enables compounding to work its magic.

 

 

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Well, if this weren’t is closed end fund, he probably would be in business any more:

 

That’s not to say Mr. Kidd has never underperformed. Over the past 10 years, according to Morningstar, Central has lagged the S&P 500 by an average of three percentage points annually as giant tech companies have raced ahead. (So far in 2021, Central is outperforming again.)

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