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They don't want to democratize finance. They want to make naive retail investors feel excess confidence so they can sell more of their dumb order flow. Their
by cwkoss 6y ago
They don't want to democratize finance. They want to make naive retail investors feel excess confidence so they can sell more of their dumb order flow.
Their interface is horrible for finding any information you'd actually want to use to make an investment decision. They are good for easy no-fee trading, but you constantly have to avoid UI dark patterns pointing you towards sub-optimal decisions.
- FireBeyond 6y agoRight. You can say its hyperbole or "locker room talk" but in situations like this, it's very clear that a large part of the financial sector is _absolutely sincere_ when they look at retail investors as what they literally call "dumb money", "dumb flow".
- kasey_junk 6y ago“Dumb money” is a particularly poor bit of jargon but as it’s used in finance it doesn’t really mean that the finance sector thinks a person is a rube or stupid. It really means you think an order doesn’t imply any directionality in the order book. Most orders don’t! Most orders happen because of things outside of the markets (I’ve retired, I’m rebalancing my portfolio, my kid is going to school, I got paid so I’m buying into my retirement fund). Those orders are not indicators that the market is going to move. This is in contrast to a hedge fund unrolling their position. That act will impact the market. So for instance while Melvin was taking a bath closing out their shorts they were “smart”. But my index fund sell that made me money was “dumb”.
- bondarchuk 6y agoTheir interface is just laughably, inexcusably bad. The stock price charts don't even have labels on the y-axis! No really, check it out! https://blog.robinhood.com/news/2017/10/31/robinhood-now-on-web https://blog.robinhood.com/news/2017/10/31/robinhood-now-on-...