The recent suicide of a Robinhood investor who racked up $730,000 in trading losses begs the question of whether investing apps have a fiduciary duty to qualify investors for more complex financial instruments. It can make people feel savvy and sophisticated to say that you have put options in Tesla, however, a lack of understanding of the risks or even how to mitigate your risks—instead of leveraging further—can result in the financial destruction of your life. But how do you know if you’re a shrewd investor or a high stakes gambler?
@afisher recently shared an analysis of the Robinhood app traders who were betting big on Pandemic bankrupted companies such as Hertz. Do you think with high unemployment that we’ll see more people “betting the farm” on high risk investments to try to keep what they have?
Alan Fisher’s discussion on high volume trading of the stocks of companies in Bankruptcy