I am a Robinhood user. I downloaded it to enter the world of investing. Some of my friends from college recommended it because it is easy to use and gives a modest introduction to the casual stock market. I did not know that Robinhood would stab me in the back once I started making money.
Here’s what happened
In case you missed it, several investing apps sided with rich hedge funds when they were trying to short stocks; these apps restricted casual stock investors from buying several “meme stocks,” including $GME, $AMC and many others. Essentially, the investment apps – such as Robinhood, E-Trade and Charles Schwab – protected hedge funds from losing billions of dollars and stopped a group of retail investors from making a large profit.
There will be a fallout.
I am a casual stock market investor; I don’t have much money parked in it. And now that I have seen what happens when a little guy, like me, gets an edge in the market, I am staying away. The system is not fair and only rewards the wealthy. So what is going to happen if I pull my money from the stock market? What is going to happen when other casual investors pull their money as well? Many of us feel these platforms have betrayed our trust.
Switching to other investment platforms
It is still smart to invest in the stock market. Long-term investments allow your money to grow with inflation. But if the casual stock market investor doesn’t have trusted platforms to let them participate, what is the solution? Less popular platforms such as TradeZero haven’t restricted anyone from buying stocks or cryptocurrency throughout this entire process. So, we could see our abused consumer base flood to those platforms while they are trying to take on the “Goliath.”
Moving from stock market to real estate
In the end, I still think a lot of people will be pulling their money from the stock market and parking it in real estate and other investments. There could be a bubble popping soon.
