So Robin Hood Crashed this morning and I woke up to about a million messages asking me just what people should be doing. How do you handle a broker crash? What should you do should you change Brokers blah blah blah. We're going to be covering all of that in this video, but of course I do want to take a moment to acknowledge that I know a lot of my audience uses Robin Hood and I've always been a little bit harsh on you featherheads, but I just want to give some of my thoughts as to how you should handle this and how to better protect yourself in the future. Okay, so just to start with a bit of context, on the morning of March 2nd 2020, many people woke up excited to take new positions, only to find that Robin Hood wasn't working.

People got messages like this. The company tweeted this and there's just a ton of muck as' and this had understandably been quite a disaster for many folks who held weekend positions and it also sucked for folks who were looking to take advantage of today's slight reversal. And yes, this really was quite a slap on the face for many Robin Hood users. It's sort of like having the opportunity to take your crush out on that first date and then you pull up to her house, you walk to her door and then you open it and she looks beautiful and then she slips into a coma everybody hates when that happens and Robin Hood just pulled some of that.

But to be fair, you should know that all brokers have their glitches. You're never going to get a broker that has no glitches. whenever there's a broker that has an issue. I get bombarded with posts, comments and messages telling me about the issue.

So I've seen that week after week, there's always any problem with a specific broker. All brokers have problems in my personal experience and in the experiences of others. I've seen this to be so true. However, not all issues or glitches are created equal and a complete shutdown of a platform for most of the trading day, if not all of the trading day is pretty drastic.

And I know this has been quite a disaster for many of you. So many people actually go out and they put the effort into making a plan and then they can't execute on the plan because of something like this. It's just it's a whole disaster. And I know that this is even more so true.

given the current market conditions that we're in, things are just so prone to changing quickly and you need to be able to get in and get out when you need to get in and out. But just know that while Robin Hood may have let you down, the one thing that will never let you down is that ravishing like button. So don't let it down by not pushing it. Make sure to hit that if you haven't already.

But in all seriousness, let me take you through some of the practical ways to protect yourself and better prepare for future glitches like this. So number one, number one is to have a backup Broker One of the best ways to ensure that you're in fighting shape the next time something like this happens is to simply have multiple brokers ready and available so that you can go out and exploit the opportunities as they come forth. If your primary broker is down and you see a huge opportunity, no problemo just use the backup broker. As you know, being a sly trader myself, I have several different brokers I use Weeble, I use Tos and I do have a Robin Hood account.

This isn't just the login screen wait hold on, how much do I have on here I have $35 worth of buying power on my Robin Hood account which is good because look at the screen on the Robin Hood account. it doesn't work haha. But I do use thinkorswim and Weeble and I have tried out tons of other brokers just to see what works best for me and those are the two that works the best. I Want to make sure that when a good opportunity comes up because I trade like a spoiled brat I Want to make sure that when a good opportunity comes up that I can take advantage of it and the only way to do that and to ensure that I can do that is by having two different brokers and I use Thinkorswim and Weeble to accomplish that.

And of course, folks, you should know that I would never use this Robin Hood mishap as an opportunity to promote Weeble. I would never do that I would never even mention that we bowl is giving two free stocks when you both sign up and deposit using our link below. I would never mention that to you. Why would I want you to get that second stock that could be valued up to $1400 But I would suggest trying out a bunch of different things and sort of window shopping to see what works and what doesn't work for you.

For some people, Robin Hood is something that will fit their preferences. But number Two, understand that glitches are inevitable. If your broker tends to have glitches at Market Open, which TOS was doing for quite a while, then you have to understand that and work around the possibility that there could be a glitch at market Open. If your broker tends to have a history of sporadic closures such as Robin Hood which again, sporadic closures is a nightmare.

Obviously, you shouldn't be holding very risky positions overnight because that's called swing trading and swing trade needs to have higher probability setups in order to hold it. But, but it's going to make more sense to take sporadic movement positions generally on zip trader. When we talk about swing trading and holding positions overnight, we preach bide in two setups that are undervalued, but also don't have a history of really sporadic movements where they go up or down substantially and me after hours or in the pre-market That way, if something happens and you aren't executing out at pre market, you don't have to worry in your swing position is still relatively safe and you can manage your risk. Again, things can still happen, but it's all about risk management.

So the point of this one is that while glitches are inevitable, you can do your best to understand what glitches your broker is susceptible to and you can't catch all of them obviously. But you can do a point to understand that. Hey, I'm going to do my best to manage the risk taken by a glitch. That could happen.

Okay, number three, and this sort of builds off the last point. And that is, try different brokers and see which one works the best. Which broker has the least amount of glitches based on your trading style. Some people find that certain brokers don't perform well with leveraged etfs.

For example, they tend to switch out with leveraged ETFs But for me, I Trade a ton of leveraged ETF So if my broker was doing that, then I wouldn't be using that broker. But if you have someone else that doesn't trade leveraged ETFs then that's not going to be a problem. They can still use that broker because the other broker is fine for not trading things that aren't leveraged Etfs. But my suggestion with this is to simply execute your trading files on several different brokers and see which one works best for you on average and then you take the top two and then that becomes your primary and your secondary broker.

And then the beauty of this is that any glitches that your new most efficient primary broker has, those are just costs of doing business and any business that you start is going to have a cost of doing business. When it comes to trading, this is one of the costs of doing business aside from your losses and aside from everything else which is are sort of another expense that you just have to pay for. Hopefully you're paying for that in lost opportunity and not in being stuck in positions, but at the end of the day they're both costs of doing business. Okay, but at the end of the day, what does this all mean for Robin Hood? Well, Robin Hood has a history of people suing them when their software doesn't work.

It also has a history of folks complaining about execution times leading to fines and whatnot and there's no doubt that this is probably going to cause some more lawsuits. and while it does sound like I have a negative attitude towards Robin Hood I Actually they're not a terrible broker. I Think they've done a lot of and things to improve their setups such as indicators and whatnot in execution times I have heard have been better again I stopped executing on Robin Hood quite a while ago when I started this channel. I had a little bit more of a focus on Robin Hood just because I saw that a lot of people were using that and I wanted to sort of get into the the niche with that.

but I didn't really like Robin Hood and I went back to Thinkorswim and then later Weeble. But nonetheless, brokers are a personal choice and I don't want to discourage people from looking in all the different brokers I just sort of make fun of Robin Hood because of the problems that they've had. But my suggestion with anything with trading really is to educate yourself, educate yourself on what it is that Robin Hood offers, and understand some of the pros and cons. For example, one of the big pros of Robin Hood is it's very easy to use.

once you download the platform. it's very easy to just start trading even if you know nothing about the stock market. So the big pro of Robin Hood I would say is the ease of use, quite easy to use, quite simple to understand, and the con of Robin Hood I would say is like everything else. Just kidding.

I would say the biggest con of Robin Hood is just. it's a little bit difficult to adapt when it comes to actually trading professionally. Number one is their desktop platform, just it's not very nice. I Don't think that it does a good job of giving us what we need for being active traders.

I think Robin Hood is more geared towards investors, beginning investors and now with their options trading. It's sort of bringing in more traders. but at the end of the day I Just I Don't like where it is right now I think that there's more that can be done I Think they can do more on the paper trading side and on the simulated on-demand trading side like thinkorswim is done like we Bull has done again at the end of the day. These are my opinions and just because I have my opinions doesn't mean that you have to follow them.

but these are just the things that I think. aside from that, if you tried to sell a position this morning and you got stuck and you lost thousands of dollars, just go ahead and reach out to Robin Hood Support and see if they'll give you any sort of perk for not allowing you to sell out of your position. I Think there's some sort of law that says that brokers have to execute you out or have to submit an order when you submit them. so if you didn't have the ability to submit it, they may give you some sort of perk in order to balance that out.

I Don't know. press them on that a little bit and sense up into their support team. I've seen that happen with other brokers, so I wouldn't be surprised if they did the same thing at Robin Hood. Although technically it says that Robin Hood or its affiliates shall not be liable for any losses as a result of any issues addressed in the section thirty Two of this agreement, nor shall Robin Hood or its affiliates be liable for any losses blah blah blah realized for technical issues.

This is the key here. Nor shall Robin Hood or its affiliates be liable for any losses realized through technical issues involving any of their API products or API licensee technology or product offerings including system outages. Or downtime. Including system outages or downtime.

So technically they do. You have this release of liability, but I think it's still worth it to argue with them because if not very many people argue and then you know some people do. Sometimes they'll just do something for you as a perk just to get you off. But anyways, if you have any questions or you want to share any comments about Robin Hood whether or not you're going to be leaving Robin Hood or whether you want to stay because they're fabulous, just let me know in the comment section below and just let me know what you think.

I Do read every single comment and I do make an effort to respond to most of the comments within the first 48 hours. So if you do have a question for me, you could also reach me down below. The only questions that I don't respond to are the stupid ones. Also, if you want to keep up to date with us each and every single day, we highly recommend that you join us at our Zip trader circle.

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