Why I Cancelled Robinhood

Here are my thoughts on Meme Stock Investing on Reddit, and the reason why I’m cancelling my Robinhood account – Enjoy! Add me on Instagram: GPStephan

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FIRST: MEME STOCKS
Today, it’s almost as though the traditional advice no longer applies, because the stocks which are doing the best…at least in the short term…have absolutely NOTHING to do with fundamentals, at all…but, instead…they’re based on a combination of sudden investor enthusiasm, short seller interest, and the potential…to make a LOT of money, VERY QUICKLY.

But, critics of this say that….this isn’t investing…and they blame the surge of meme stock investing on the apps that make them all possible in the first place…like ROBINHOOD.

The SEC recent said that “they’re worried these stocks are too easy to trade on Robinhood and elsewhere — and that investors could be setting themselves up for massive losses.” He THEN went on to say that, “one of the ways to deal with the “gamification” of trading is to force brokers to act more like fiduciaries, as opposed to passive trading platforms that merely process trades.”

The way I see it…when it comes to MemeStock investing, I get it, and I see the appeal. But, at their core – meme stocks make very little fundamental sense in terms of the company itself, they’re INCREDIBLY risky, and just as easily as you can make money – you can also lose it.

Don’t invest what you can’t afford to lose, set a limit where you will reasonably take profits, diversify throughout OTHER INVESTMENTS, and understand the risks associated with what you’re doing.

What’s MOST LIKELY going to happen is that, fundamentally, this will discourage short sellers from overly shorting a stock, hedge funds will likely de-risk the moment the catch wind of a meme stock rally – and, over time, there will be a more balanced price discovery of stocks…instead of picking the most shorted, and driving it up from there.

SECOND: ROBINHOOD

First of all, it’s important for me to mention that – as someone who talks nonstop about personal finance – it’s my JOB to have every stock market brokerage app out there. I trade with everything, I see which features I like and don’t like, and most of these accounts have been set up for YEARS…but, unfortunately, Robinhood has been the only one consistently giving me problems.

On April 15th, I got a notice that my account had been restricted, and that I would be unable to withdraw any money from the platform. I thought, fine…doesn’t matter to me much, anyway, I’m not planning to move my money around, I’ll just sort it out and be done with it. But then, immediately after…I got hit with a DEPOSIT restriction, meaning – now, I can’t deposit any more money to Robinhood.

That was 2 months ago, and after repeated emails back and forth – my account is still locked, with no update when the issue will be resolved. This, unfortunately, is a HUGE problem, and will be the reason why I remove all of my money from the platform as soon as my account restrictions are lifted.

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*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/

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