Happy Friday and I just want to mentally just post this for the history of this blog.
It has been a crazy week and I thought last week was crazy during this WSB (WallStreetBets) frenzy. If you do not know what is going on, here is a quick video of what is going on. I do hold stocks and crypto but I have not been in the stock TA game at all. I think it is just a place to hold money and let it grow.
More recently, it has been entertaining to watch and a skill I have come to realize I have research and analytics. Though I am not a true technical analysis person, I do watch what is going on the internet. I am always ahead in the affiliate game because I listen, watch, and continuously keep my ear to the ground.
Since starting to learn about the market a bit more and having friends that do this more full time, I have the resource to ask them questions, but this WSB frenzy is literally another level. Not really true market speculation but just to give a FU to the big guys.
Now yesterday, (1/28/2021) $GME and $AMC have been restricted to be traded on the popular trading app Robinhood. I trade on Robinhood because it is easy. I am not an expert in this game, so I just use it to make orders and let it sit. If I was more sophisticated in the trading world maybe I would use a platform like TD Ameritrade or Webull.
This opens doors to my mini project on the financial game. Just like how I created this blog to learn online marketing, I have created a new website to learn stock trading. It isn’t done but it is a very unique website I think, as it is a resource that I need myself. In any case, a lot of people are saying Robinhood is crap and people should move away from it. Here are my reason as to why I will not move away and why Robinhood played a huge role in this ‘short squeeze’.
First, Robinhood is an app which millennials, moms, grandparents can download from the app store and just buy a stock. It is super simple, it gives you the basic information you need to know and you swipe up and buy a stock. DONE.
Now there are other trading platforms like Webull, which is a competitor to Robinhood. It is also the app that is always mentioned next to Robinhood.
The reason why I do not use Webull is that it has too much information, it is definitely for a person that has upgraded off training wheels and moved on to their hand me down brother bike then onto the BMX.
It is a bit complicated and this is why I like Robinhood, even after the fiasco that has happened.
In marketing the less friction a person has to accomplish the goal you want is a far better experience. This is true when it comes to a website layout, to an app UI, to buying stocks. The less friction you have to generate a lead or a conversion the higher your ROI is, this is why Robinhood is the app of choice for most users.
Here is a simple diagram on what happens with less friction:
This is also why Robinhood had a play in this, as millions of users are using the app and depositing cash and buying fraction shares or buying just 1 stock. What is 1 stock going to do?
Simple, the Reddit WSB thread has over 2million users and 1 stock from each person counts toward their goal and purpose. Easy to execute, easy to buy a stock, easy to create a transaction in the palm of your hands.
Everyone says to leave Robinhood and I know people are going to leave the app, but a lot will end up coming back because of its simplicity. Swipe up, your transaction is done.
When you create your ads, your creative, your ad copy, your landing page, etc – the goal is to get the highest CTR or conversions possible and remove a lot of friction to the end-user. This is why Robinhood wins and why I will probably end up staying. Once I become more of an expert then maybe I will move to thinkorswim or even Webull.
In the end, watching this and slightly participating in this craziness is entertaining. There is NOW a shit load of new users who are interested in trading. Most will probably actively switch to be a trader and do their research, but currently, the goal is to put these hedge funds in prison and bankrupt them.
active for only 7 days.