{"id":1995,"date":"2020-12-22T12:59:26","date_gmt":"2020-12-22T17:59:26","guid":{"rendered":"https:\/\/navesinkinternational.com\/Staging\/?p=1995"},"modified":"2023-12-20T02:53:24","modified_gmt":"2023-12-20T07:53:24","slug":"daytrading-s-history-of-problems","status":"publish","type":"post","link":"https:\/\/navesinkinternational.com\/2020\/12\/22\/daytrading-s-history-of-problems\/","title":{"rendered":"A History of Daytrading: Regulators, Congress and Robinhood"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/navesinkinternational.com\/Staging\/wp-content\/uploads\/2020\/12\/Robinhood-the-Scorpion-and-the-Frog-300x168.jpg\" width=\"300\" height=\"168\" alt=\"The Scorpion and the Frog\" class=\"wp-image-1996 alignright size-medium\" srcset=\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2020\/12\/Robinhood-the-Scorpion-and-the-Frog-300x168.jpg 300w, https:\/\/navesinkinternational.com\/wp-content\/uploads\/2020\/12\/Robinhood-the-Scorpion-and-the-Frog.jpg 479w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p><span>More about Robinhood and its history of regulatory problems&#8230; Massachusetts&#8217; Enforcement Division <a href=\"http:\/\/brokeandbroker.com\/PDF\/RobinhoodComplaintMass.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Massachusett&#039;s complaint against Robinhood\">filed a complaint<\/a> about<\/span><br \/> <span><\/span><\/p>\n<ul>\n<li><span>the firm&#8217;s aggressive growth tactics,<\/span><\/li>\n<li><span>its repeated outages and disruptions, which were well known and ignored while pushing growth,<\/span><\/li>\n<li><span>its gamification strategy,<\/span><\/li>\n<li><span>and insufficient supervision for option trading.<\/span><\/li>\n<\/ul>\n<p><span>Here is an excellent, albeit a bit engthy, analysis of the history, regulatory and general situation of Robinhood &amp; its Day Trading business by <a href=\"https:\/\/www.linkedin.com\/in\/brokeandbroker\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"LinkedIn Bill Singer\">Bill Singer<\/a> <\/span><span>of <a href=\"https:\/\/www.linkedin.com\/in\/brokeandbroker\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Broke and Brokers\">Broke and Brokers<\/a><\/span><span>. It notably reminds us that<\/span><\/p>\n<ul>\n<li><span>Massachusetts makes quite an income from its lottery,<\/span><\/li>\n<li><span>FINRA had slapped Robinhood&#8217;s hand with a modest $1.25m a year ago,<\/span><\/li>\n<li><span>Wall Street&#8217;s problem with retail executin problem started in the 90&#8217;s,<\/span><\/li>\n<li><span>Robinhood has already met the frustration of its traders, sometimes suicide,<\/span><\/li>\n<li>Complaints of the firm way outpasses all its competitors,<\/li>\n<li>Congress was already looking into similar matters in early 2000&#8217;s,<\/li>\n<li>Brokerage firms have a suspicious tendency of being unable to record customer complaint calls during crashes and outages&#8230;<\/li>\n<\/ul>\n<p><span>Previous blog entries on the topic of Robinhood:<\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/navesinkinternational.com\/2020\/11\/20\/most-robinhood-day-traders-lose-money\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Most Robinhood day traders lose money\"><span>Most Robinhood day traders lose money<\/span><\/a><\/li>\n<li><a href=\"https:\/\/navesinkinternational.com\/2020\/12\/21\/robinhood-s-usd65m-sec-penalty-and-the-gamification-of-trading\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Robinhood\u2019s $65m SEC penalty and the \u2018gamification\u2019 of trading\"><span>Robinhood\u2019s $65m SEC penalty and the \u2018gamification\u2019 of trading<\/span><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>More about Robinhood&#8230; Massachusetts&#8217; Enforcement Division filed a complaint about<br \/>\n&#8211; its aggressive growth tactics,<br \/>\n&#8211; the firm&#8217;s outages and disruptions, which were well known and ignored while pushing growth,<br \/>\n&#8211; its gamification,<br \/>\n&#8211; and insufficient supervision for option trading.<\/p>\n<p>Here is an excellent, albeit a bit lengthy, analysis of the history, regulatory and general situation of Robinhood &#038; its Day Trading business by Bill Singer of Broke and Brokers (http:\/\/www.rrbdlaw.com\/).<\/p>\n","protected":false},"author":1,"featured_media":1996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12,11,13],"tags":[35,19,20,46,47,48],"acf":[],"_links":{"self":[{"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/posts\/1995"}],"collection":[{"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/comments?post=1995"}],"version-history":[{"count":1,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/posts\/1995\/revisions"}],"predecessor-version":[{"id":13084,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/posts\/1995\/revisions\/13084"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/media\/1996"}],"wp:attachment":[{"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/media?parent=1995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/categories?post=1995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navesinkinternational.com\/wp-json\/wp\/v2\/tags?post=1995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}