Everyone feels like a genius in a bull market. A pile of bread mold could make money in the stock market now. It won't last forever though.
I trade at the risk of lower overall returns for the chance of very high returns.
Index funds are for my retirement account, it's fun to have a brokerage account and trade with it as a hobby. It's been very profitable so far but I don't expect that to continue.
I'd imagine day trading has a much higher return than buying lottery tickets or gambling at a casino for example.
Re:Robinhood S-1 IPO
by jackson1442 on Thursday July 01, 2021 @06:39PM
(#27705763)
I definitely fell into this trap, but fortunately came out ahead. After switching to Vanguard I feel more comfortable in my investments since I don't feel the time-pressure to check performance etc. RH feels too much like a social network where it's trying to push you to buy and sell every single day while more traditional brokerages follow a "set it and forget it" path.
This is also what I've noticed, and it mirrors with investing mentality of their respective users too. Schwab, Fidelity and Vanguard (the 3 platforms I looked at before going with Schwab) gear their experience towards a long-term investing mentality. They'll do a large number of checks and forms until they'll let you perform certain trades (options, futures, derivatives, etc). You actually need to pass a few tests to do those. Meanwhile RH makes that as easy as slicing butter with a warm knife, and barely warns its users of the risks.
Re:Robinhood S-1 IPO
by garyfirestorm on Friday July 02, 2021 @01:07AM
(#27707982)
In the last 2-3 yrs the market has only gone up. No matter how bad you’re at day trading, you’d have only made money. That being said, options are highly risky things and it will barely take a week for someone to lose their savings.
On the spot! Robinhood has made it so easy to trade that I have seen many people trading from their mobile while having a coffee or commuting! I would really like to see all these "traders" in 5/10 years ... if it is true that 80% of day traders loose money .. I bet tons of improvised traders will learn a very expensive lesson.
I don't do trading, I simply don't have time to fully look into companies balance sheets etc. I buy index/mutual funds , I might have missed the meme stocks but I am happy with my steady growing investments, compounding effect works great!