paper D4

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The reply post must be approximately 50 words (1-2)

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Robinhood is a free-trading app that lets investors trade stocks, options, exchange-traded funds and cryptocurrency without paying commissions or fees. Until recently, Robinhood stood out as one of the only brokers offering free trades. But with many big-name online brokers eliminating trading commissions and fees in late 2019, Robinhood's bright light has dimmed a little. That said, it's still a solid choice, and currently it's one of the few brokers that gives investors the opportunity to trade cryptocurrency. Robinhood offers both web and mobile trading, but the platforms are purposely bare bones, and some investors may find the range of tradable securities and account options lacking.

I am thinking about using Robinhood to trade stocks because much like other online investment brokerages or apps, Robinhood operates under a decent amount of regulation and protection - but it is important to note, it is not a bank. And while the regulations and insurance do make Robinhood safer to use, there are other factors to consider apart from mere security when looking at the app's safety. But it may not pose a tangible threat to investor's money in terms of security, some experts, including Falcone, claim Robinhood's layout and model might be dangerous for new or inexperienced investors and some reviews suggest Robinhood isn't the easiest platform to hold a diversified portfolio, being more geared toward users with very few stock positions.

I trust the assistance of social media; retail commercialism has become additional popular the assistance of social media. As mentioned within the article, commercialism on the apps has become competition. It becomes addicting. In person grasp people that got wedged with the day commercialism and are seeing more social medias quote it further.

Dan Egan, Betterment’s managing director of behavioral finance and investing, said that It’s almost like being in Las Vegas. He did not call any out by name of other investment apps. He said that, they want to maximize the emotional impact of seeing that number.

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I think its very funny this was the article chosen for this weeks discussion. I know Im a little late to the party however I read this article last week and was almost in tears laughing while reading it.

I fit very much into the demographic that this article shoots towards. I commonly frequent reddits r/wallstreetbets, and I am an avid user of Robinhood. I have fun with it. I've also done fairly well. I have a certain portion of each paycheck set aside (in addition to retirement contributions through a standard match program with my employer) and I invest it in companies I like or companies I think have a shot at taking off. Its mostly just to play around with. I am by no means a savy investor, I dont know how to really do options, but I do know I have several friends that work at Webster Bank and Travelers, so I buy a few shares of each and then I tell them Im their boss. "Hey Chris, I notice Websters stock is down, Im gonna need you to come into the office this weekend and pick up the slack". "Babe, are you really going to ask your boss to do the dishes? I'm going to have to speak to the CEO at the next shareholders meeting about your work ethic..."

I also invest in companies I believe in. Laugh all you want but I invested in Crocs when it was at about 10$ a share and it peaked I think around 60 this year. I also invested in Tesla just because I like the company and you can see how well that worked out.

I do agree heavily with the article that its basically gambling, but just like gambling, when I go into a casino with 200$ set aside strictly for that, I fully plan on losing it. If I walk away breaking even I had fun and if I win alls the better. I have a few risky stocks that could go absolutely nowhere, but if one of those biopharm companies Ive bought a ton of shares in manages to find a vaccine for Covid-19 Im set for life.

3 Discussion

Give an example of any of the above biases and/or effects in the stock market. Describe the example in detail, and why you find it interesting.

Your example can be of a specific stock, or a specific behavior of investors, or anything you believe illustrate the above biases and/or effects.

The initial post must be approximately 200 words