RobinHood Options Trading: Why RH Secretly WANTS You to Lose Money [2019 Trading]

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David Jaffee with BestStockStrategy.com where I earn around a million
dollars a year by trading options in this video I'm going to discuss why
RobinHood is bad and why the RobinHood app is very bad for all of its all the
people who use it. So my gut feeling and I don't have no idea about the statistic
that I'm about to throw out but my gut feeling is that the majority of the
people who use RobinHood actually LOSE money and the reason is when you go into
the RobinHood groups on Facebook you see that all of these people who are
using RobinHood to trade are buying options. That's like, well it's not the dumbest
thing possible they don't seem possible that you could do is like day trading or
following Tim Sykes and trying to trade penny stocks or following Ross
Cameron or Kyle Dennis or Jeff Bishop or Jason Bond. Those guys are
complete criminals and they belong in jail so I definitely think that buying
options is a better strategy than buying one of those other people's programs but
I definitely also believe that RobinHood is very bad for you because it
encourages you because you can't sell naked options but you can buy naked
options it encourages all these people to display the 20% or 30% of their trades
that are winners and they are not displaying the 70% to 80% of their trades
that are losers because they all want to feel social validation that they're
actually legitimate profitable traders and they have a good strategy. So instead
what they do is they go on Facebook and they show their winners some of them
they win like you know 100%-200% on a trade and then they
don't show all the losing trades the 70% to 80% of their trades that lose
money and all of them who buy options end up losing money it's just a question
of when they're gonna lose money so with enough occurrences the more you trade if
you trade something if you flip a coin and it only has a 30 or you know 20 or
30 percent probability of profit you might win the first two times that you
flipped the coin but if you flip that coin ten thousand times
you're making bets on every single coin flip eventually you're gonna run out of
money because the probability is against you so what options what on Robinhood
does is it encourages these people to post their winning trades and make it
look like buying options is actually a sustainable and viable strategy which we
all know that it's not and then other people get roped in because they think
that it's an easy way to make money and then these people have a continuation
and they persist in this fake strategy of buying options and then they
eventually all end up losing all their money. So forget like the other stuff
about you know even Robin Hood not allowing you to sell naked options or
the fact that they sell out their people and they get like worse fills. I mean to
me that is secondary to the fact that you have limited flexibility and you are
encouraged to purchase options and RobinHood does not, RobinHood actually
discourages people from selling naked options when selling naked options is
the best strategy that any individual retail investor can possibly have to be
consistently and predictably profitable in the stock market. So this is David
Jaffee with BestStockStrategy.com I would definitely stay away from using
the RobinHood trading app because it encourages you to establish very bad and negative
habits that you're then going to have to spend time to break them when you
transition to a real broker so most of the people on RobinHood they have
less than $10,000. I guess using Robin Hood when you have
like $2,000 - $3,000 dollars so you can make commission free trades is
fine but once you really once you want to get serious about making money and
you want to stop you know just caring about posting your bullshit trades to a
Facebook group so that other people can tell you how awesome you are when we all
know that you're not really making money once you really want to get serious
about upping your game and learning a verifiable skill and making consistent
money you really have to get off RobinHood because it's a bullshit platform
and it doesn't provide you with the flexibility of being able to trade naked options it
encourages you to establish bad habits and if you have any questions let me
know please like comment share subscribe to this channel and I'm here to help you
thanks

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RobinHood Options Trading: Why RH Secretly WANTS You to Lose Money [2019 Trading]

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