3 Stocks Robinhood Investors Should Give Up On
It's been an exceptionally volatile year on Wall Street, with the broad-based S&P 500 losing more than a third of its value at one point during the first quarter, then regaining everything that was lost in under five months. The CBOE Volatility Index saw its highest reading on record in March.
When volatility spikes, we often witness young and novice investors pile into the stock market in hopes of getting rich quick. Just take a peek at the rapidly growing membership data for online investing app Robinhood if you don't believe me.
Robinhood, which is best known for offering commission-free trades, fractional-share investments, and gifts free shares of stock to new users, has gained millions of members in 2020. The average age of its users is just 31. While it's great that young people are putting their money to work in the stock market, Robinhood isn't giving its members the tools or education needed to understand the importance and compounding potential of long-term investing. As a result, Robinhood investors own a lot of awful companies.
Source Fool.com
