Robinhood Game Over
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Oh, I saw this story about Robin Hood and it took me back to childhood there with the video game Pac-Man. You know, at the end of the game, your last little Pac-Man would die. Bloop, bloop, and it would have game over up on the screen. Video games like a quarter back then. I wonder what they are today. Or they even have them anymore. Anyway, anyway, Robin Hood. Yes, yes. The.
trading app that we’ve been making fun of that we explained to people is going to be detrimental to all of the kids that are treating it almost like again a gambling app. Well, well, it was sued by the state of Massachusetts saying that they turned the app they gamified it called a gamification charge. So Robinhood has to pay 7.5 million.
to say that it gamified its trading platform, encouraging novice investors to make stock trades that in many cases were not financially prudent. And they agreed to overhaul its digital engagement practices. This is according to William Gabbard. I mean, again, you got 7.5 million. I guarantee that it costs a hell of a lot more to go after these guys.
Again, the Robinhood successfully challenged the division’s complaints in the state’s fiduciary rule. They’re not a fiduciary. That’s not what they do. They are what they are. You want to slap a warning label? I don’t know. But at some point in time, again, we’ve made fun of these online trading apps. We’ve made fun of Robinhood. Oh, yeah, it’s commission free.
How do they keep the lights on? How does it work? Where do they get their money from? Well, they sell your trades to guys like Ken Griffin over at Citadel, and there’s a myriad of other things that they do. But again, they want you trading and moving in and out of your positions as much as possible. They have little things that’ll ding on your phone and trading volumes up and the stock that you own is up a quarter point on heavy volume. What should you do?
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for novice investors, again, points them in the wrong direction. Again, but people have been, you can watch business programs. I’ve made fun of the Wall Street Journal on a regular basis here, pointing people in the wrong direction. You know, stupid is as stupid does, as Forrest Gump said. At some point in time, you have to hold yourself personally responsible for the actions that you make. And the money that you end up losing. Watchdog on Wallstree.com
