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Robinhood active users2/1/2024 One Reddit user displays a screenshot showing his 89% loss and claims to have said goodbye to $51,000 in two years, including a $30,000 loan at an unusually high 14% APR, which he says he lost in a single month. Let’s just say the do-it-yourself investors who are posting aren't taking the downturn well. Where once there was unabashed optimism of “to the moon” and clarion calls to “HODL” (insider lingo for “hold”), there’s now a sharing of screenshots featuring deflated portfolios ravaged by the early snifflings of what could be a contagious bear market. Nowhere is that sentiment more true than at the now infamous Reddit message board, WallStreetBets, which was the incubator for the speculative calls on AMC, GameStop and other meme stocks. But just about everyone feels smart when they make money. Making money during a bull market doesn’t necessarily make a trader smart, says Hersh Shefrin, an economist who specializes in behavioral finance and teaches at Santa Clara University. Now he’s up just 5% and says he trades less frequently than he once did. Stone, 43, says he’s seen a “precipitous drop” in his Robinhood portfolio. He traded stocks on the platform but kept a separate 401(k) account. Robinhood has lost over 1 million users from last year and revenue from equities trading was down 73%.īrian Stone, a project manager with Bath and Body Works, joined Robinhood along with his coworkers during the Covid-19 lockdown of 2020. The cryptocurrency-mining company surged 300% shortly after, but Fok’s portfolio is down 50% since he first started trading on the the app.įok, who married during the pandemic and took a new job, says he’s trading less these days because he has less time and is more risk-averse to market swings. The native of Queens, New York, purchased his first stock, Marathon Digitial Holdings, on a recommendation from an anonymous user on the social media app Discord. He’s been trading on Robinhood since June 2020 and says he’s seen fellow DIY traders’ accounts “blow up” since January. That includes Allen Fok, a 31-year-old manager at a software company, who was a teenager when markets hit their lows.
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