Robinhood: What Went Wrong?

2021-ж., 5-мар.
119 023 Көрүүлөр

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Is Robin Hood working for you, or someone a lot ... richer?
When Robin Hood emerged on the investment scene, it proclaimed itself a democratizer of the finance world. The reality is something very, very different. We''ll explain in this Wisecrack Edition on Robinhood: What Went Wrong
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=== Watch More Episodes! ===
Gamestop: The Economics of Sad Hedge Funds ►
Billionaires: What Went Wrong? ►
How Adam Sandler Got Good ►
00:00 - Intro
02:04 - How Robinhood Changed Investing
04:48 - Payment For Order Flow
10:58 - Not As Smart As You Think You Are
14:10 - Outro
Written by Jeanette Moreland
Hosted by Michael Burns
Directed by Michael Luxemburg
Motion Graphics & Editing by Jackson Maher
Video Title Card by Amanda Murphy
Produced by Evan Yee

#robinhood #gamestop #wisecrack
© 2021 Wisecrack / Omnia Media, Inc

  • Robin Hood turns in his grave. Rich even richer because of his name.

    zalazak suncazalazak sunca10 күн мурун
  • What went wrong? The little guy figured out how the rich were grifting the system, used it against them to put these hedge funds out of business, Robinhood decided to protect it's corporate Masters instead of it's users and blatantly broke trading laws to do so, and here we are... Has anyone besides the investors(the little guy) been punished? I have yet to see a trial... But we all knew the real cheaters would never pay for their crimes... This country no longer has Rule of Law...

    Robert ShankRobert Shank15 күн мурун
  • I knew that Robinhood app was full of crap.

    Wilfredo VazquezWilfredo Vazquez18 күн мурун
  • Robinhood is a scam,,,

    Eddie RomeroEddie Romero20 күн мурун
  • I find it hilarious that all I got was stock investment ads through this that I could "turn 12,000 into 12 million"

    dragoonfunykiddragoonfunykidАй мурун
  • Wow thanks for the robinhood ad pop up.... f off

    Sue ThaoSue ThaoАй мурун
  • Great educational content as always

    k kk kАй мурун
  • Even after RobinHood screwed their investors, there is no denial that the fat cats of Wall Street crapped themselves after the short squeeze. If they came to TV to cry and rant about the Average Joes messing the stock market, it seems that we finally hit them where it hurts the most; more people knowing about economics means less power for them to exploit the cracks. What happened once, will surely happens again; with new stimulus checks, more damage can be caused...if people know better about their tools.

    Pedro CoelhoPedro CoelhoАй мурун
  • Had to watch a Robinhood ad before watching this video 😆

    Lizzy MyersLizzy MyersАй мурун
  • 6:47 "You also learned a timeless lesson about the inner workings of capitalism." Pinning the blame of malicious human behavior on capitalism is a tiresome argument. In which society did switching to nationalized markets or socialized government programs cause the greedy and/or unscrupulous people to cease taking advantage of others?

    Piers Echols-JonesPiers Echols-JonesАй мурун
  • Well this was a depressing watch. But important information. Glad I haven't used these apps.

    JoeJoeАй мурун
  • Okay the office space clip was very well placed

    JoeJoeАй мурун
  • I'm not much of an investor but I often only invest in companies that have a good past when they fall for a bit. I buy some, wait until it goes over what I bought (no matter how long it takes, and those good companies usually do make a recovery), sell it make a small profit. Then I repeat the process. It's not glamorous but still...

    GioGioАй мурун
  • End hedge funds.

  • We already have figured something else out... BLOCK CHAIN!!! No need for intermediary because escrow is built in 😊

    Steven WardSteven WardАй мурун

    Tim DuncanTim DuncanАй мурун
  • I have no problem with payment for order flow, because I still make money for literally doing nothing. Of course I don't trade margin. Also it's significantly cheaper for me than payment per trade

    Mitchell LerichMitchell LerichАй мурун
  • Fun fact. When I did research with machine learning for trading strategies for a client, there was an interesting fluke. The best strategies were 1. to buy SP500 and hold (thus not outperforming the market, but not falling below the market), 2. to make a single trade when there is a visible bubble burst. I tried artificially forcing the system to place orders once a day, but the system tried to mitigate this limitation (placing orders way below the market price or reducing volume to zero). When I tried to force it to place tradable orders, it always made things worse in the simulation. So, given enough data, ML system went "screw this casino, I'm out"

    Nobody QuiteNobody QuiteАй мурун
  • Sir this is a casino

    miguel castanedamiguel castanedaАй мурун
  • Bitcoin.

    BergkatzeBergkatzeАй мурун
  • The winners of the Greed game will never willingly give up their money or power.

    RJ EhlertRJ EhlertАй мурун
  • I got a robinhood ad in the middle of this video

    Samuel SmithSamuel SmithАй мурун
  • I watched the movie limitless and decided to do Adderall and trade stocks now I'm a thousandaire

    Hayan ImadiHayan ImadiАй мурун
  • Lmao I got a Robinhood add

    Alex MorrisonAlex MorrisonАй мурун
  • Lol only checking the app 10 times per day

    badamsbadamsАй мурун
  • Argh these promotions are killing me

    The Annoying OneThe Annoying OneАй мурун
  • When did Wisecrack go from a cool pop culture channel to a quality information video essay channel??????? Love to see it!

    Jack DaileyJack DaileyАй мурун
  • So okay, the more I hear about stocks, the more it sounds to me like it's giant groups of rich people buying abstractions that have no inherent value. And that will, some day somehow, explode and leave everyone involved dirt poor. So, would anyone in this comment section be kind enough to inform an ignorant man such as I?

    Mr. BernMr. BernАй мурун
  • The answer to your last question: DEX

    D FD FАй мурун
  • how did this channel turn to total shit

    OffLogicOffLogicАй мурун
  • Florida Man is on a roll.

    Aleister LaVeyAleister LaVeyАй мурун
  • the thing about making a lot of money the more trades you do reminds me of a living single episode where the cast decided to "invest". should have listened to kyle :-p

    stefoehmenstefoehmenАй мурун
  • Use Uniswap & Sushiswap Folks.

    Crypto RootzCrypto RootzАй мурун
  • *video ends* *stock trading app ad plays*

    Nicholas Kalas-HernandezNicholas Kalas-HernandezАй мурун
  • Did you guys change something on this video? The thumbnail or the title?

    Leandro PeixotoLeandro PeixotoАй мурун
  • "Here in My Garage..."

    Ryan MillerRyan MillerАй мурун
  • Lol just make it illegal to sell or lease something that you don't own. When you buy from robinhood, you're getting an IOU note instead of the security you think you're buying. I guess securities are also just IOUs. Same thing happens when you pt your money in a bank. I'd rather just pay a company a fee for handling my transaction or keeping my money safe. Cryptocurrency works in the same way.

    T Zack CrawfordT Zack CrawfordАй мурун
  • passive income is bullshit making money just by having money is bullshit earning income without doing anything of real value is bullshit the process of generating revenue by doing literally nothing is bullshit accumulating wealth without making anything or providing a tangible service is bullshit

    Nathan LevesqueNathan LevesqueАй мурун
  • This should be interesting. I detest what Robinhood did, yet I detest Marxists pretending to be ‘lovers of wisdom’ even more.

    maplebob23maplebob23Ай мурун
    • Sounds like your only solution is for us to enslave ourselves to you Central Committee. Like all Marxists you offer nothing.

      maplebob23maplebob23Ай мурун
    • Other than mass graves, can you vile Marxist ‘lovers of wisdom’ have ever produced?

      maplebob23maplebob23Ай мурун
  • Corporate communists.

    maplebob23maplebob23Ай мурун
  • Whoever your writer is doesn't know how robinhood works. Every company you can buy stock in is NOT on robinhood. For example your friends uncles weed company with no financials.

    FaiFaiАй мурун
  • lol I love how people think GME is over. It hasn't evrn started yet

    Nils LanthemannNils LanthemannАй мурун
  • So, 15 min and you failed to even mention the actual reason why Robinhood *legally had to* pause GME trading...

    Jérémy QuentinJérémy QuentinАй мурун
  • Dam man You crushed my dreams of being an Options Trading Millionaire !

    Hrithik mtaHrithik mtaАй мурун
  • Wow ... this episode dealt clearly with a obscure subject much the way that "Last Week Tonight" would have ... bravo

    secular monksecular monkАй мурун
  • I still want a Bernie Madoff and Sanders rap battle and have said this to them :)

    Bella MazBella MazАй мурун
  • As always, when the house finds out you can beat them at their own rigged game, they either change the rules or they don't let you play anymore.

    hellper198hellper198Ай мурун
  • Some people play the lottery, I throw spare change at biotech lol

    Ling0 SLing0 SАй мурун
  • props for trying to explain this as best you can

    TheCreepyproTheCreepyproАй мурун
  • Lol the users thought robin hood was letting them trade for FREE? if it is free, YOU are the product. YOU are THEIR slave. And you volunteered. Its not expensive, pay for your own trade account.

    tom SHADYtom SHADYАй мурун
  • Put your money on etfs not hedge funds

    Senpai TMSenpai TMАй мурун
  • Is this not insider trading.

    eaglesclaws8eaglesclaws8Ай мурун
  • Robin hood, more like prince John.

    eaglesclaws8eaglesclaws8Ай мурун
  • 6:37 Ah yes, nothing exemplifies the American ethos better than this example of ripping off your family member to make a profit.

    Erick PalaciosErick PalaciosАй мурун
  • Another example of the powerful economic elites not wanting average joe playing in their sandbox. As soon as retail investors start to get better than them at the game, they shut everything down. Welcome to the NWO.

    BeakersNetworkBeakersNetworkАй мурун
  • Robinhood is basically a data collection software for Hedge funds, to give them better information on what to short.

    Ugandan SonicUgandan SonicАй мурун
  • Please do the philosophy of the weekend

    Blessing FakudzeBlessing FakudzeАй мурун
  • The big players will always have more information. any relevant news for a stock has already been processed by high freq algorithms minutes/hours before you ever lay your eyes on it. unless you have a bloomberg terminal, you are the milk cow that is always 1 step behind. even with the terminal you will lose as their servers are closer to the exchange's servers. dont be a milk cow.

    KVOKVOАй мурун
  • Ugh the fact that this story is spun onto so populist bullshit by people who have no idea what they are talking about is the real problem here.

    EJR77EJR77Ай мурун
  • What's worse, losing billions of invested money or having the eyes of the world now honed onto the shady business that is stock trading?

    Um BongoUm BongoАй мурун
  • Let's be clear - the little guy won once, and look at the fallout. When do we reach for the pitchforks?

    Um BongoUm BongoАй мурун
  • Blockchain is the answer

    MrKomMrKomАй мурун
  • Passed this video up for 2 days thinking it was an ad 🤦🏾‍♂️

    SSJAlphaSSJAlphaАй мурун
  • Y'all should do a philosophy of the pandemic video. What really changes if we go back to normal life? Is remote work sustainable? What if did everything we could at home instead of going outside? VR?

    SanctionSanctionАй мурун
  • Are there any stock apps that are actually good?

    RelesyRelesyАй мурун
  • I don't know why people continue to ignore the simple fact that they become the product as long as the service is free. Look at so called "free-to-play" games and their predatory lootboxes. Look at Facebook and similar social media platforms that sell your personal information to advertisers. If you want a service to work FOR you rather than work YOU as their product, pay a fucking fee. There's no free lunch in this world. If it's free, YOU'RE the lunch.

    7177592671775926Ай мурун
  • Check gamestop 😏😏😏

    forgotten Onesforgotten OnesАй мурун
  • Many communists tried to destroy capitalism though any kind of revolution. Reddit users did a much stronger hit by using more capitalism against capitalism. Showing that the rich do not want capitalism for all, they want more protection from the government against anyone kind of legit popular organisation that may slightly harm their profits.

    FHZ ZuFHZ ZuАй мурун
  • That problem is that we are expecting everything for free. So if a new app offers a good experience and costs a fee pennies, nobody will use it.

    João PJoão PАй мурун
  • angry rich people loosing money.......

    John AyapJohn AyapАй мурун
  • Robinhood is the absolute worst free brokerage available. Webull is way better. TD Ameritrade is cheap and reasonably priced

    Shawn RobertsonShawn RobertsonАй мурун
  • You guys are trash without Jared

    Tetris McTetrisFaceTetris McTetrisFaceАй мурун
  • The hedge funds are not "destined to win". As the video notes, no hedge funds beat the market in the long run. That means a well-diversified portfolio that tracks the overall market BEATS THE HEDGE FUNDS. The problem is that a diversified portfolio held in for the long term is boring. You can't actively trade. Well, you can't have it all. Put 95% of. your investments in a bunch of EFTs or mutual funds, don't check them but once a month, don't buy or sell, just leave it alone. If you must actively trade, acknowledge you're gambling and use your other 5% to gamble with. Open a new account with another brokerage, so you can't see your real savings and be tempted to actively trade or track your daily gain/loss, and be ready to lose that 5%, or whatever % you're comfortable with losing. Smart investing is annoyingly easy. Like, too simple people can't imagine that buying a few EFTs and ignoring them for a few decades is the most profitable investment strategy. This is why investing doesn't need democratization. If you don't have enough money to open a 401K, that means whatever money you'd be investing isn't going to change your life anyway. Saving $1,000 isn't going to fund your retirement. Yes, you do need a lot more than that. So the real issue is one of poverty. If someone is struggling to make rent, the last thing they need is access to purchasing the highly volatile investments. They need their basic needs met, which we need to solve with, in my opinion, a UBI. Access to the stock market is not a social issue that needs solving. Apps like Robinhood are a solution searching for a problem. What do wealthy hedge fund owners really want? Exactly this conversation. The real problem is poverty, it needs to be solved through legislation that will most likely require higher taxes on the wealthy. The whole democratization of investing is a distraction, and as we've found out, a distraction created by the wealthy from whom commission-free brokerages are supposedly taking power. The point is, all of the inequalities in the stock market that favor hedge funds are in the short term. In the long term. You cannot beat hedge funds in short-term trading for all the reasons laid out in the video. In the long term, a passively invested, diversified portfolio wins. In the long run, we're all playing the same game, and $1,000 can expect the same % return as $1M

    Ben BowlbyBen BowlbyАй мурун
  • Easy. Considering they weren’t making money off people joining the platform. They made money by selling market data to Citadel and other funds who were also on the other side of the game stop bet. Read flash boys by Michael Lewis. It’s even in there as far back as seven or eight years ago that Citadel was a high frequency trader front-running the market by buying access to market data from brokers and then running to the other side of the trade. Get yourself on a platform where you pay the broker per trade, because it will make you trade less and think about what you are going in and getting out of. Because you don’t want to be paying nine dollars a pop on something small. So it automatically increases your discipline. And for god sakes, be boring and by index funds. The only people who do trading full-time, do it with other people‘s money, that’s why they get away with it. They don’t really do it with their own, unless they have shit loads enough to not care. I also love how America thinks it doesn’t have legalised gambling except for in certain states. They have one better, a casino called the stock market which has done a brilliant job of convincing everybody that it’s not really a casino

    Conor SConor SАй мурун
  • I want to like your channel, but shilling for phony hair growth/stop balding gimmicks is disappointing.

    John FrankJohn FrankАй мурун
  • I want to see Chelsea Fagan from 'The financial diet' do a reaction video to this; how has 'Wealth simple' averted this ?

    Marginalia 2043Marginalia 2043Ай мурун
  • For me Robbinhood is a plus. I’m a divided investor meaning My strategy is to hold stocks long term and receive payments. I’m set up where I get at least one dividend payment a week. Over time I could make over a $1000 in dividends in a single year.

    The ShrimpThe ShrimpАй мурун
  • “A few cents off every trade might not sound like a big deal. And when compared to a $6 or $7 trading fee, might even sound like a GOOD deal.” That’s why I use Robinhood. Plain and simple.

    nocoinnocoinАй мурун
  • Wait... people want to make money instead of just throwing money at meme stocks to make rich people mad? That's disappointing and boring.

    FirmusFirmus2 ай мурун
  • This is why I just have my selected stocks and recurring buys every week. Slow and steady. I know I'm getting screwed, but that's just life in this world at this time. If you aren't born into it or lucky, you will always be the one getting screwed. :/

    Jacob JonesJacob Jones2 ай мурун
  • All short sellers hate the hood. Ha ha.

    jkmaru09jkmaru092 ай мурун
  • Hedge fund and wall street guys all day trading and yelling at eachother= fine Retail people yoloing money they can afford to lose on highly speculative options and keeping an eye on the market= addicted Seems like some robinhood propoganda. Bring uo the couple idiots that killed themselves. Lol poor idiots. Shouldn't have been trading with margin. You realize the guy that got screwed by the vw short killed himself too. Did they shut down the market for him?

    mrmilkoilmrmilkoil2 ай мурун
  • Unsophisticated customers........ I never fell for that shit. How could it make sense, You fund a trader instead of your self...

    Radical EdwardsRadical Edwards2 ай мурун
  • As someone who generally agrees with your videos and dislikes Robinhood, the amount of misinformation in this video is alarming.

    Brandon PetridgeBrandon Petridge2 ай мурун
  • The "JUICE"... - Shut it Down. Simple as dat. Though the whole this is staged and setup, probably. Bankster should be sent into another dimension.

    Miki FloksterMiki Flokster2 ай мурун
  • AHHH NO I just signed up yesterday

    Sergio MarquezSergio Marquez2 ай мурун
  • how can the pros outweigh the cons, if they're all basically cons working there?

    irgynirgyn2 ай мурун
  • I nearly tripled my money with 18 stocks. Over 3 years I made less than 100 trades. Granted, I did research, read financial statements, waded through piles of disinformation. Buy on long-term value and don't follow the crowd. While many of the concerns raised here are evident it has given everyone access to free trading and I applaud the idealism of democratizing the market. When given unfettered access and freedom combined with some people's propensity for gambling unintended consequences are inevitable but nonetheless still tragic.

    GoScrewItUrSelfAutoGoScrewItUrSelfAuto2 ай мурун
  • Just another form of the lottery, a tax on the poor and dumb.

    Sirrickthe2ndSirrickthe2nd2 ай мурун
  • meme investors and crypto bros are what's wrong with rh

    Thomas W. SmithThomas W. Smith2 ай мурун
  • That's clever. Instead of making the gamestop incident illegal, you can convince everyone to stop trading. Nice try wisecrack. Im not stopping 😆🖕

    CrashCrash2 ай мурун
  • It is like poker. Inexperienced players just play too many hands and call just to be in the game. 80% of hands should be folded. Also almost every free business makes the user its product. It has become one of the core principles of the internet

    ⸻̆̈⸻̆̈⸻̆̈⸻̆̈ᙎᓿᖇᙍᗫ ᒪᗅᓿᘉ⸻̑̈⸻̑̈⸻̑̈⸻̑̈⸻̆̈⸻̆̈⸻̆̈⸻̆̈ᙎᓿᖇᙍᗫ ᒪᗅᓿᘉ⸻̑̈⸻̑̈⸻̑̈⸻̑̈2 ай мурун
  • Nothing like a Robinhood ad on a video about how Robinhood sucks lol

    Cuddibuddi12Cuddibuddi122 ай мурун
  • Buy and hold index funds. How difficult is it to understand?

    simran gillsimran gill2 ай мурун
  • GME is not over yet. The next few weeks gonna be crucial in the battle against hedges.

    kuprenx All hail VWAPkuprenx All hail VWAP2 ай мурун
  • The upside for anyone that understands how powerful information can be in stock sales is SO obvious it should already be highly illegal to do this.

    Alex TorresAlex Torres2 ай мурун
  • Irony that the KGworld ads for this video are for day trading apps.

    Alex FranceAlex France2 ай мурун
  • Short answer it turns out when the rich treat the stocks like a personal rigged casino for themselves it leaves that system open to manipulation.

    The Laughing Storm Born AgainThe Laughing Storm Born Again2 ай мурун
  • Robinhood: People asked us why? Why treat people like this. WHy? Cuz fuck 'em thats why!

    Ninja BlackNinja Black2 ай мурун
  • We like the stock.

    Christopher CooperChristopher Cooper2 ай мурун