Gambling with FinTech
Before the internet, if you wanted to trade or invest in a company, you’d have to go to the library and do your research. You might spend hours reading and researching a company’s performance. And if you wanted to buy or sell a security, you’d have to call your broker on your telephone.
Today’s technology allows us to research a company’s financial performance and trade or invest in the company in seconds. Playing the stock market has never been more simplified and accessible.
Commission-free brokerages, combined with instant access to the ultimate source of knowledge, Google, has made modern investing and trading a piece of cake. Everyone is doing it, from 18-year-old high school students to 50-year-old parents who never owned a brokerage account until they saw their child profit $50,000 from a trade idea he got from Reddit. People are using today’s financial technology to learn, grow their capital, and change their lives, all for free.
While fintech has changed many lives, it hasn’t changed everyone’s lives for the better. The ease of investing and trading in today’s world has inevitably caused some to make horrible decisions.
People are treating the stock market as a gambling machine, buying, and selling securities without doing thorough research in hopes they win big. And these gamblers often base their trades off information they see on social media.
Wallstreetbets, an infamous community on Reddit, is known for its members gambling away thousands of dollars in the markets. Its members take pride in blindly making risky trades, with one member posting their loss of nearly $200,000 after following the advice of fellow Wallstreetbet members. One member grew their account from $2,000 to $100,000 and rode their gambles down to a balance of $1,000 in a month. There are hundreds of other examples of fintech gone wrong on Wallstreetbets.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.