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Robinhood’s New Traders Ignore Danger Signs to Bet on Stocks

  • Trading frenzy on app is reverberating across equity markets
  • Experienced market hands warn novice investors may get burned
Robinhood
Source: Robinhood
Updated on

Rich hedge fund managers are talking about it. So are not-so-rich millennials. And fast-twitch gamers, and bored sports fans and -- in all likelihood -- some 15-year-olds you know.

The “it” is Robinhood Financial’s trading app, which is throwing jet fuel on the speculative fires of coronavirus-era equity markets. Not since the dot-com mania of the 1990s, when starry-eyed day traders dreamed of online riches, has a brokerage platform drawn such a frenzied following. Skeptics warn the hype could set up home-bound novices for disaster.