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    • raffibhardwaj10 months ago

      I use Robinhood all the time, but I can't shake the feeling that it eventually will have its own day of reckoning too.

      The whole premise is that you know what you’re doing; it’s hardly Robinhood’s fault if you don’t.

      Offering sophisticated trading tools like margin trading to anyone and everyone can be super dangerous - just look at the Nebraska student who tragically took his own life last week. It will be interesting to see if/how Robinhood starts implementing more guard rails for its product in the future. Does Robinhood have the responsibility for that?

    • [user]10 months ago

      This comment was deleted on 6/23/2020

    • monstertuck
      10 months ago

      Interesting two pronged articles with the first part being around the tech and product/market fit that Robinhood capitalized on. The founders did an incredible job of getting to know their customer and then developing a product that met what the customer wanted.

      The second element around the psychology of why Robinhood has been successful luring younger investors into investing is interesting as well. As someone that had a Robinhood account and then was forced (by employment reasons) to return to a traditional brokerage, I can say Robinhood made trading so much easier. It really is like click and buy, versus having to go through lengthy buying processes with terrible UI/UX and then paying $20 per trade. It's remarkable that Robinhood is spurring the demise or consolidation of brokerages, but kind of surprising it hasn't brought them all down faster.

      Overall - worth a read!

      • jeff
        Top reader this weekTop reader of all timeReading streakScout
        10 months ago

        This was super interesting! I first heard about Robinhood after stumbling across the WallStreetBets subreddit. The screenshots and stories of losses that people post there are so insane. I wonder what percentage of Robinhood users are using it for straight up gambling.

        • monstertuck
          10 months ago

          Especially with sports betting being put on essentially a total lockdown, and with Vegas and other casino heavy locales being closed. I'm sure it was high.

          I also saw a very sad article last week that a 20 year old committed suicide because his puts basically showed that he owed $730K, and it turned out to be a timing / display error in the app that was more or less momentary through the weekend.