Re:Pandemic Villains: Robinhood
by m3kw9 on Wednesday December 09, 2020 @07:05PM
(#25367460)
Most of them are basically gambling, not investing. You talk to enough of them, they can’t tell why a stock goes up or down. They point to this double top or flag pattern and say yeah you need to buy now. They get “tips” from someone at a stock board and buy or sell. It’s very very close to what the late 99s look like. Robinhood helped them along for sure but is not all their fault
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Re:Pandemic Villains: Robinhood
by nemothekid on Wednesday December 09, 2020 @10:24PM
(#25369262)
>Most of them are basically gambling, not investing. You talk to enough of them, they can’t tell why a stock goes up or down.
To be fair, that's all of retail trading. Unless you are buying and holding a fund, then any sort of trading is gambling. The talking heads on CNBC are just as insightful as the kids on /r/wallstreetbets.
The word you're looking for is 'speculating'. I.e. gambling...
Eh, the main problem with frequent trading is transaction costs (fees + bid/ask spread), if that cost is low then they are just increasing volatility (if anything) but not changing expectation (relative to a relevant basket of stock they are trading).