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

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