markets Employees Scrambled to Keep Robinhood Afloat in January 2021 Meme-Stock Frenzy, House Report Finds written by Admin June 25, 2022 Robinhood Markets struggled to handle huge volumes of stock trading and sparred with its principal customer, market maker Citadel Securities, during the week in January 2021 when meme stocks exploded, according to a report from the Democratic staff of the House Financial Services Committee. The committee held hearings in February 2021, questioning the chief executives of Robinhood and Citadel Securities, as well as meme-stock hero Keith Gill and Gabe Plotkin, the hedge-fund manager who lost billions betting against GameStop and other hot stocks. The staff reviewed tens of thousands of pages of internal documents, including pointed communications inside and between the companies.
There's an interesting admission implicit in the source article (published in WSJ today) repeatedly referring to Citadel as Robinhood's "biggest customer". The individual investors who use the app are not really "customers"...they are the product. when the product is free, YOU are the product
Why the surprise? Do you pay anything to trade on their platform? So why would you be anything more than a conduit to their paying customers?
Your response is a fitting response with the handle Occam. " Definition of Occam's razor : a scientific and philosophical rule that entities should not be multiplied unnecessarily which is interpreted as requiring that the simplest of competing theories be preferred to the more complex or that explanations of unknown phenomena be sought first in terms of known quantities." Occam's Razor Simplified The idiom "when you hear hoofbeats think horses, not zebras" refers to this principle that the most likely solution is the simplest one. This is not because simpler explanations are usually correct, but because you make fewer assumptions when looking for horses instead of zebras." A more modern version is KISS- keep it simple, stupid.
hardly epic or original and none of this has a f'ing thing to do with whether you make money trading or not . if you dont realize this, you are a loser for sure