11+1+1 Errors Robinhood Stocks Investors Make
This year, the number of retail users increased tremendously in the stock market. Allegedly millions of inexperienced, mostly young small investors are streaming into the market. Some weeks ago I made a list about the 11 + 1 Grave Investment Errors Robinhood Newbies May Commit, but one was missing. “You don’t make your homework and choose a mistaken title”. Or, simpler, “you buy the wrong product”.
Everyone makes a mistake. But anyone with less experience or not doing the basic homework is much more often mistaken. Others may invest by intuition without proper analysis. They may choose the product they wanted but at the wrong price. Let’s see the examples.
Do your homework. Also simple as you don’t confuse one company with another. But also do your research to avoid buying worthless securities at a high price level.
Interesting Readings on Other Sites
I found a lot of interesting articles about these topics, I share some with you.
- Day Trading Has Replaced Sports Betting as America’s Pastime. It Can’t Support the Stock Market Forever. (Barron’s)
- This is not only a phenomenon of the Robinhood platform. Also E-trade, Charles Schwab, Interactive Brokers experienced skyrocketing of user accounts this year. (SeekingAlpha.)
- The Rise Of Robinhood Traders And Its Implications (SeekingAlpha)
- How I’m Betting Against Robinhood (SeekingAlpha)
- Typically, when traders and speculators run rampant in a hot market, it doesn’t end well. (Investing.com)