Why $HOOD Wants You Trading 24/7

AfraSimon
12-23 08:54

$Robinhood(HOOD)$ is "rather brilliantly evil".

It's important for retail traders to understand the game that trading platforms are playing.

Wall St. Journal just reported that "Vlad Tenev has come to realize that plugged-in, aggressive traders are actually key to his company’s success."

The company needs you to be aggressively (even degenerately) active 24/7 on:

- ODTE options

- prediction markets

- crypto

- leverage

- daytrading

More activity = more order flow, wider spreads, more interest income.

HOOD makes money by selling order flow to hedge funds + market makers, spreads on options/crypto, and margin lending.

I'm not hating on Robinhood, I think they're brilliant at what they do (and I'm bullish on $HOOD).

But as a retail trader, you NEED to understand how big money actually thinks and where the incentives really sit.

Less is more.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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