RT @nathanielpopper: NEW: Robinhood has become a Silicon Valley success with a mantra of “democratizing finance.” We used new data and analysis to look at what it looks like under the hood. The picture is one of unusually big risks and technology failures.
NEW: Robinhood has become a Silicon Valley success with a mantra of “democratizing finance.” We used new data and analysis to look at what it looks like under the hood. The picture is one of unusually big risks and technology failures.
You don't bet what you can't risk to lose. However, the stock market is supposed to be more complicated than just "rich boomer gambling". Things like robinhood have made stocks function essentially as scratch-off cards for the ill-informed. Buyer be ware, for sure, but the misunderstandings of how the stock market works should be cleared up to those people.
This one's interesting, because trading is what I like to call strategic gambling. With that being said alone, people know what they're getting into when they throw large sums of money into an app like Robinhood. We as designers can help users limit their mistakes and offer better experiences, especially in terms of clarity, but at the end of the day, people will put in as much money as they want and potentially lose or gain a lot of money. If a person really wants to, they will, no matter how many fail-safes are in place.
I've also been involved in the stock market since January and have been using Robinhood daily for about a month now. It's ethical. There are no pushes to get you to put in money. They only thing they try to push is referring people to signup for you to get free stock. It's not in your face though, no popups, etc. They keep it subtle.
I saw in the comments someone else said that Robinhood lowers the barrier to entry for newcomers to the space. Obviously true. It's a trading app targeted toward beginners, just like Cash App's investing feature that came out in October 2019. Robinhood also has what's called fractional shares, which means you can buy any stock for just a dollar and you will be sold a fraction of the stock. In my opinion, all this does it help newcomers learn the playing field and makes people buy exactly how much of whatever stock they want. For example, one share of Amazon is like $3,000, but if you only have $1,000 to invest, you can still get 1/3 of an Amazon stock.
Hope this answers some of your questions. Feel free to respond with more.
Yeah I get what you mean..That argument surely hits home, even if you put safeguards in it will just be ignored by people. It's like installing an application in windows you just hit next until it's installed. I don't know what I did but I just want to install it.
I'll admit I'm too emotional invested in not even letting people get a hold of a good UX like robinhood with low barrier of entry in investment when they have no financial stability. It's like betting on high stakes poker when I'm homeless and in debt just to have a slim chance of winning.
The sad part is day trading is being pushed hard by influencers using RH. Rather than just buy and hold on a company with good balance sheet, little to no debt, has a good moat the get on with your life. and never touch it again.
I get the impression also that people will do dumb things problem, but i think options like
1. Stoploss notification or As Default
2. Good FICO Scores before Registration
3. Good IRS standings
Would help in setting up a barriers. BUTTTTT,,robinhood is not like that.. It's getting the barrier low enough so people would take charge of their finances and take the money from the rich. Sadly the opposite is happening.
With that said should we treat an app as neutral or with no right and wrong. That at the end of the day, the perception of a neutral app is just tinted on what people are doing there? Also it's just hard for a company like RH to just stop the growth for it's highly VC backed. A little conflict of interest there.
Hey man thank you for commenting. Let me know if there are things that you agree or disagree with.
I find it interesting how you mention influencers pushing day trading on Robinhood. I've actually seen the exact opposite. This could be because I only follow a few top-tier select individuals for trading though. For example, Warrior Trading.
Your three points at the end there are very interesting. Quite frankly, I wouldn't be against them either. This would raise barriers though, like you stated. But yeah, the whole neutral aspect of Robinhood comes down to the users at the end of the day. Again, just like you stated, what are the users doing there? Are the users there to learn, trade, or throw themselves in blindly?
Great topic and discussion, thank you!
Thank you, I also watch warrior trading videos, but I don't day trade. My day trading urge is satisfied by just watching them :). I actually self moderate because i might be influenced in day trading. Though I'm in an emerging market the stocks are less liquid and volatile than in US markets. (still has a high risk though because STONKS)
Clarifying the influencer point, I think i mixed up individual trade groups and individuals with big influencers.
I consider trade groups or individual people who are just trading in social media that are just regular people also as influencers. Poor choice of wording in my side so this is my bad.
Yeah seems like it's a hard topic. I'm a tad frustrated with topics I can't get a resolution on, guess we'll just have to observe these things pan out.
Thank you again in entertaining my questions mate. I'm humbled by your replies.
Ah, yes, Ross is incredible. Dude is a trading legend.
Thank you for clarifying about the influencers. I see what you mean now and can confirm that is the case now.
And thank you too for your responses! You've also brought up some great insights regarding neutral style experiences. Definitely makes me think a bit harder about barrier to entry.
Honestly I remember getting stuck in a trade years ago on TSLA, my platform glitched up and i had to call my fucking broker in the Bahama's to get me out of the trade. I swear if i wasnt so young i wouldve had a heart attack. The stress was insane! When i consider the fact that I was training for a year, had a concrete strategy, an instructor, exited the trade +500, and still my reaction was pure panic mode. The craziest part... the trade only lasted 10 minutes. That's why Ive always hated the idea of Robinhood. An app that can deliver a financial world with tens of trillions of dollars of transactions at ANYBODIES FINGERTIPS with no qualifications. Throwing young people and their life savings to the fucking wolves in the MOST VOLATILE UNPREDICTABLE MARKET ANYONE HAS EVER SEEN. Then when you bomb out your account it's "fuck you pay me".
They offer very little education, dont provide a simulator so you can see if you can even make money. Instead they allow their consumers to be thrown into a live firing squad where billions of dollars are exchanging hand per second, without providing a single fucking safe guard.
FUCK ROBINHOOD THEY'RE NOTHING BUT CAPITALIST VULTURES RAN BY TRUST FUND FUCKERS, SCALPING WHAT LITTLE PENNIES MY GENERATION HAS LEFT
Wtf how do you get a mil, then jump back in and lose it all? If I got a mil from all of this I Immediately would stop, take the family on a vacation *well if covid wasnt going on* pay off my debts, then drop the remainder info to some safe bluechips/ETF
DDIQ people who don't understand what they're doing are losing thousands of dollars is their own fault. Maybe take time to understand what you're doing instead of taking out debt because you think this is a "game".
TL;DR: Guy goes $75k in debt to fuel his gambling addiction (betting on stocks), makes a million dollars, stupidly loses it all and is left with $7k, whines about it like it's Robinhood's fault he's dumb.