Yeah, apparently ... it's making it too easy to gamble with money according to an investment expert.
'Who's the expert, boss?'
I've no idea, Voice. But I'm sure we'll find out.
'How?! How will we find out?!'
Ha, ha, ha! The usual way ...
Rosie?
Hi Michael,
Robinhood has come under scrutiny for the way it has made investment 'easy' and brought a gaming aspect to investing, but is the criticism justified?
I've no idea.
Krisztian Gatonyi, senior analyst at international broker comparison site BrokerChooser shares his thoughts on Robinhood and the gamification of investing.
'Is that the expert, boss?'
Uh. Yeah.
"In my view, gamification starts already if you use smartphones to invest or trade. Many beginners who do not even know the difference between investing and trading are encouraged by Robinhood's visually appealing features to buy and sell stocks frequently."
Not me!
"Game-like features can manipulate beginners to increase the number of their transactions, which is good for Robinhood's Payment for Order Flow (PFOF) model, but not for users."
Well, what can I say?
"The more frequently beginners trade, the more likely they end up losing money."
Like fruit machines.
"The length of time that investors hold shares has been decreasing for decades. The average holding period is currently at an all-time low of around 6 months for US shares - in 1999, the average was 14 months."
Never mind.
"The incentives in Robinhood's app get young customers impatient and make them believe investing is about pressing the 'buy' button on mobile phones. This process involves making fewer quality decisions, which in turn will lead to losses and can be addictive."
Like trainspotting.
"Robinhood customers have the smallest account sizes, at roughly $4,000 on average, with a median of just around $240. This compares to an average customer account size of $292,000 at Fidelity, for example. This 'play amount' at Robinhood is not enough for proper money management, which might cause losses in the long run also."
Well, it is what it is.
"The main problem is that -"
Okay, that's enough. 'He doesn't like Robinhood, does he, boss?'
Anyway ...
Thank you, Krisztian. 'And Rosie.' Yes. Thank you, Rosie.
ENDS
...
Anything else?
I've scrapped that new tune. It wasn't good enough to get in my BIG TEN, and I actually need a song for my BIG THREE ...
Do you know what I mean?
I hope so, kooks. I don't have an easy life.
Laters.
