Robinhood - Grade: A PDF

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Essay about arguing an authors position on robinhood and the effect it has an the unstable financial future of America. ...

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Claiborne 1 Zakary Claiborne Professor Stoddard English 1010 September 16, 2020 Robinhood A Stepping Stone To The Future In “Trading Apps Like Robinhood are Having a Moment. But Users Should be Careful,” Author Alicia Adamczyk, Money Reporter for CNBC Make It, states that Robinhood is ultimately a bad decision for investors. Robinhood is a stock trading app where traders can get involved with the stock market with little to no prior knowledge while having access to research and other ways of trading to gain money. In the article, Adamczyk describes how Robinhood’s features, such as push notifications and visual effect, have “gamified” investing. The way many users interact with the app’s interface is similar to the way users would interact with a game on their phone. Adamczyk compares Robinhood to gambling and in a lot of ways it is, but with proper research and understanding of the stock market, any user can become a successful trader. This article made me think about how my financial decisions could be impacted in the future. I have invested in Robinhood,

and I have witnessed financial gain in my small

investment. This is due to a lot of research but without an app like Robinhood, I would never be able to do participate or even research first hand the effects of investing. Robinhood is opening doors for new inexperienced traders, offering knowledge and a cost-free platform for these traders to begin their careers. In the article “Fintech app Robinhood is driving a retail trading renaissance during the stock markets wild ride” written by Kate Rooney a market reporter for CNBC News, Rooney states,” Robinhood’s free-trading model kicked off a wave of fee-slashing that turned the brokerage industry on its head… People that didn’t previously feel like the markets were for them are for the first time feeling a sense of inclusivity.” Ultimately the newly

Claiborne 2 provided platform for inexperienced traders is making waves in the industry and helping the common people grow and explore something that was never readily available. With my experience in the stock market, I have researched and done more to further my future career goals than I ever have previously all while feeling like I am playing a game. I pay attention to the news now which for millennials and generation Z is saying a lot. Adamczyk is right about the dangers of Robinhood’s effect on mental health but fails to recognize the steps app developers are taking to decrease the risk of huge financial losses. To address Adamczyk’s key issue with Robinhood author Dilantha De Silva, an investment professional with six years of experience in financial markets and writer for Seeking Alpha, Shares an image in his article of another piece with the title “20-Year- Old Robinhood Customer Dies By Suicide After Seeing A $730,000 Negative Balance”. This goes to show that investing is for the educated and you can make some moves that could eventually have you filing for bankruptcy. However, Dilantha De Silva shows how Robinhood has implicated some features to stop this, such as offering certain features to customers who have experience represented by levels. The app also shows no more negative balances but how much you owe and what moves can decrease that amount. As mentioned earlier Robinhood is getting young adults interested in the news. With the current COVID-19 Pandemic and other world tragedies, young adults have turned a blind eye to the media and would rather look at a much more positive feed of personal connections through social media. However the article “How Brokerage App Robinhood Got Millennials To love the Market” author Ainsley Harris states, “Robinhood’s users, 78% of whom are under age 35, want to both build their savings and develop relationships with brands—just as they have on Instagram and Twitter.” Showing how Robinhood appeals to a younger audience and how it is benefiting connections between producers and consumers. I can personally attest to this. With

Claiborne 3 my little time in the markets I not only began to pay attention to how my favorite companies were doing, but I also began to show interest in all of the world news. Author Alicia Adamczyk provided some aspects of how the app Robinhood could hurt the general public right but she missed the bigger picture. Robinhood is benefiting a younger audience by getting young adults engaged in news and the actual financial ideology of saving and investing. The investment world isn’t for everyone but for those who would like to get involved, Robinhood is a good place to start.

Claiborne 4 Works Cited Adamczyk, Alicia. “Trading Apps like Robinhood Are Having a Moment. But Users Should Be Careful.” CNBC, CNBC, 21 Aug. 2020, www.google.com/amp/s/www.cnbc.com/amp/2020/08/21/robinhood-is-having-a-momentusers-should-be-careful.html.

De Silva, Dilantha. “The Rise Of Robinhood Traders And Its Implications.” Seeking Alpha, Seeking Alpha, 19 June 2020, www.google.com/amp/s/seekingalpha.com/amp/article/4354679-rise-of-robinhood-tradersand-implications.

Harris, Ainsley. “How Brokerage App Robinhood Got Millennials To Love The Market.” Fast Company, Fast Company, 10 Oct. 2017, www.fastcompany.com/40437888/how-brokerageapp-robinhood-got-millennials-to-love-the-market.

Rooney, Kate. “Fintech App Robinhood Is Driving a Retail Trading Renaissance during the Stock Market's Wild Ride.” CNBC, CNBC, 17 June 2020, www.google.com/amp/s/www.cnbc.com/amp/2020/06/17/robinhood-drives-retail-tradingrenaissance-during-markets-wild-ride.html....