Robinhood Casino: The Floodgates Are Open

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The Robin Hood casino is open for business. Yep. Robin Hood. Yep. Their stock jumped. What was it? 8 % yesterday. Extending gains from the day before the SEC. Yeah. The good old securities and exchange commission. My regulator, my regulator. And if you only knew, if you only knew all of the hoops and things that we have to go through.

as an RIA blow your mind anyway. The SEC approved removing a $25,000 minimum asset balance requirement for day traders. So basically the new framework is party on.

Bardion Casino is open for everyone, investors of all account sizes. They can trade as much as they want, as long as they have enough money to cover the risks of every trade. Now, what does that exactly mean? What does that exactly mean? I don’t know. They have to, I don’t know, have enough money in their account for.

leverage, allowing them to buy on margin, allowing them to buy certain day options. This is

Yeah, it’s gonna be disaster for investors. Do you know that the average Robinhood user has a balance of $12,000?

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12,000, that’s the average Robinhood user, 12,000 bucks. If you think that you have that type of money in the markets saved, you should be day trading. You’re a fool.

You’re you are a fool. You know, I think about it to some degree. And, you know, I’m not a I don’t gamble. Go to casinos. I’ve never been to bloody Las Vegas. I have it.

I’ve never been to, I don’t gamble, I don’t do that, I just don’t understand it. I don’t play spets on sport. I don’t do any of that stuff. Doesn’t make any sense to me. Yeah, to think back when, well, most of the gambling outside of the casinos run by the mafia, now it’s everywhere. It’s in everything.

Various different bets one can place on a single sporting event, know, the polymer all these various different things that are out there Who is making? the money

Who’s making the money? Honestly.

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I mean, think about it real hard for a second. Do you think average Americans are actually making money on this?

Again, I know I’ve told this before, it’s worth telling this story again, in a couple different ways. We were asked about this. We were asked about getting involved in online trading, doing an app like Robinhood a long time ago. Long time ago.

They thought by using, you know, the watchdog on Wall Street show and I think they get the word out. I could be a part of this. And I told them, no.

I told them no. Reason being is I knew that this would happen. Now, legally, legally, I could have done this because I could wash my hands of it. I’m not telling, I’m not the guy telling people to go out there and day trade. That’s not on me. That’s on you. That’s on you.

but I know human nature.

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I know human nature. And I was, again, was asked, talking about my business and what I do for a living. you whatever asks to see, you because I wear so many hats at Markowski Investments, you know, what I do on television, what I do on, you know,

radio shows and guest appearances and TV and I write and all these various different things. And again, Markowski Mrs. We’re a registered investment advisory. We manage people’s money. for me, if I was to give a one sentence explanation for what, what I do, what I do is I keep people from doing stupid shit.

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Basically.

I keep people from doing stupid things with their money because they do. They do. Robinhood stock has been down, has been down because so many of their people have lost so much money. Well, now this is going to open up the floodgates for all the people that haven’t been able to trade to go ahead and lose money.

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It’s amazing to me that human beings, mean, again, human beings feeding themselves to sharks. Do honestly think that you can out trade the major investment? You honestly think you could out trade me?

Do ya?

I don’t even do it. Okay. I don’t even, I don’t trade. It’s not what we do. You think you’re gonna beat me? You think you’re gonna beat my brothers? Right.

That’s who you’re up against, do you understand?

yeah, yeah, yeah, yeah. Ken Griffin, you’re gonna smoke him, right? Please! Stop!

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Okay, you’re being a fool. Average investor, $12,000. You shouldn’t even own individual stocks. No. You shouldn’t own any at $12,000 in account you’re trading stocks. No.

You should do, you should probably go out and get yourself a job, start saving more money, start putting more money away, put it into ETFs and build up wealth over time. think we’re trading, putting people into individual stocks with small, are you out of your mind?

No!

You put a balanced portfolio with $12,000? Again. yeah. Stupid is as stupid does. I’m sorry. Okay. I don’t mean to be off, I don’t mean to be rude, okay, but you’re going to lose.

I will harken back, I’ll go back in time. Go back in time to the 1990s.

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1990s was wild.

was wild, because we all knew what was coming. Okay. I worked on Wall Street. understood what was happening, what was taking place. wasn’t a fan of all the bank mergers that were happening, the Swiss banks coming in and taking things over. Basically, that ought to have been cast and both Democrats and Republicans getting together to get rid of the Glass-Steagall Act.

Again, that was what basically Clinton on his way out the door repealed that we ended up with these financial supermarkets. But before that, it was a dot com errors lots of companies going public all the time. And it was in many ways it was better than it was now in the fact that you could get in at a decent price. Rather than having companies laddered up over 10 years. However, again, you know, people do stupid stuff with their money.

They see a dot com attached to it. That means that all dot coms are gonna go up and that didn’t work out that way. You had at that point in time an entirely new industry. I Charles Schwab was the original discount broker. And this was before it wasn’t even running fees. was commissions. had discounted commissions. Then you had Ameritrade, E-Trade.

DLJ, all of these firms popping up everywhere vying for people’s dollars, getting them to trade. I remember it was $10, $15, all these things per trade.

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I knew it was gonna happen.

Market was going gangbusters. The valuation of the NAS, I mean, and you could take a look at these companies. It’s not a matter of if, it’s a matter of when that they were gonna collapse.

I knew it. go back. Go back and look at this, columns that I was writing about all of these things out, you know, it wasn’t going to last. No, did I short them? No. Actually, I was smarter than Druckenmiller when it came to that. Druckenmiller was just Stanley Druckenmiller won the best all time. He actually, he saw this, he started shorting.

a lot of dot com companies for a period of time and he lost hundreds of millions of dollars because yeah, you know, it’s sometimes shorting takes a lot longer. You know, you have to hold on to these things. Anyway, neither here nor there. I was asked, I was asked about the I remember being on a program that this being the demise of the that point in time, they do stockbrokers.

Stock brokers didn’t really talk much about advisors and what we were doing at that point in time And I said no How I mean that’s no it’s all who do you think financed all of these? Discount investment firms. Why would why would i’m meryl lynchum morgan stanley a golem and sax Why would they why would they prop up and invest? in a business that

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would actually hurt them. Yeah, but it’s openly competing with them and it’s driving the trading costs down. It’s got to be hurting Maryland. I’m like, Morgan said, do you think that white shoe firms, you think that their clients are going and moving all their money over to DLJ, director moving their money to E-Trade? Yeah, they may gamble a little bit with with play dollars just for a little bit of fun.

But they’re wealthy. They’re not stupid.

I said, no, these firms are going to make a fortune on all of the novice investors out there.

You know, another way, I’ll put it to you this way. There was a there was a scene in the movie Rounders, which was the was a gambling movie. Matt Damon was very good movie and Ed Norton and there are a bunch of card sharks. They all know one another. The circuit is what they do. Card sharks, poker players. They go to Atlantic City. They go to Atlantic City.

and they sit down at the poker table and they see the tourists. Okay, they know who can play and they just take them.

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They just, they know exactly who they are. And if you don’t think these firms, know exactly who you are?

course they do.

You’re getting taken. again, that’s… I get you. I’ve had a lot of good wins, man. I turned my $10,000 account into $13,000 over the past year. Okay. Keep going. See what happens. Watchdog on wallstreet.com.