How Robinhood Plays With Your Attention And Makes You Lose Money

Stéphane Renevier

over 1 year ago4:47 mins

How Robinhood Plays With Your Attention And Makes You Lose Money

Here’s a not-so-fun fact: 70-75% of today’s retail traders lose money. That should be surprising, but it isn’t: beloved brokers like Robinhood are designed to make their customers trade frequently, even if it means making them trade badly. But if you’re wise to their games, you won’t just be among the esteemed 25%: you’ll actually be able to capitalize on everyone else’s bad habits.

How has Robinhood changed things?

Robinhood – and other neobrokers like it – wants more people to trade, and all those people to trade more. That’s what their revenue depends on – not how well those investors actually perform. And it’s figured out two ways to do it: by making trading as cheap as possible, and by making their apps simple, fun, and addictive.

The first part was easy, with Robinhood p

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