Agreed, but I don't think FOMO is the driving force behind social trading, from what I've read. To me, based solely on what I've read today, eToro's appeal is like buying running shoes because some social media influencer recommends them. It's a no-effort approach and it's new. I think that would appeal to the younger generation more so than my generation, but that doesn't mean that it's not a good business model.
From a personal approach, my thinking was to open an account, invest it in something I would otherwise hol in my portfolio at Schwab so I could follow eToro's social accounts in real time. Whether my funds are at Schwab or eToro doesn't really matter if I would hold that position in my portfolio anyway. Maybe I'm missing something, which is why I posted this. The withdrawal fee (apparently $5 for what I've read so far) is insignificant if I decide eToro isn't for me.
Not my investment style at all, so I would never do it. But as for others, checking a reddit discussion that is rather lengthy and seems totally legit, the comments from users agree on the fact that the spreads are big (not good), and a fair amount of users note some big procedural problems. More than a few mentioned problems when they tried to get money out, and they seemed to be ongoing. Also mention that their prices and transactions are slow and not what one would hope for.
It seems geared to people who want to invest but don't have the time or inclination to do their own due diligence.
In my way of thinking, their are so many investment vehicles, funds, etfs, sector plays, and readily available advice in abundance - all basically free - I don't see the appeal of a service like eToro for someone willing to put in even a little thought and research into their options.
I just don't see why any investor would choose anything but a well-diversified buy-and-hold strategy. I really don't see any other strategy working better.
Agreed, but I don't think FOMO is the driving force behind social trading, from what I've read. To me, based solely on what I've read today, eToro's appeal is like buying running shoes because some social media influencer recommends them. It's a no-effort approach and it's new. I think that would appeal to the younger generation more so than my generation, but that doesn't mean that it's not a good business model.
From a personal approach, my thinking was to open an account, invest it in something I would otherwise hol in my portfolio at Schwab so I could follow eToro's social accounts in real time. Whether my funds are at Schwab or eToro doesn't really matter if I would hold that position in my portfolio anyway. Maybe I'm missing something, which is why I posted this. The withdrawal fee (apparently $5 for what I've read so far) is insignificant if I decide eToro isn't for me.
Not my investment style at all, so I would never do it. But as for others, checking a reddit discussion that is rather lengthy and seems totally legit, the comments from users agree on the fact that the spreads are big (not good), and a fair amount of users note some big procedural problems. More than a few mentioned problems when they tried to get money out, and they seemed to be ongoing. Also mention that their prices and transactions are slow and not what one would hope for.
It seems geared to people who want to invest but don't have the time or inclination to do their own due diligence.
In my way of thinking, their are so many investment vehicles, funds, etfs, sector plays, and readily available advice in abundance - all basically free - I don't see the appeal of a service like eToro for someone willing to put in even a little thought and research into their options.
Thanks. I didn't think to look on Reddit. Those are all red flags. It's obviously not targeting us.
Not my investment style at all, so I would never do it. But as for others, checking a reddit discussion that is rather lengthy and seems totally legit, the comments from users agree on the fact that the spreads are big (not good), and a fair amount of users note some big procedural problems. More than a few mentioned problems when they tried to get money out, and they seemed to be ongoing. Also mention that their prices and transactions are slow and not what one would hope for.
It seems geared to people who want to invest but don't have the time or inclination to do their own due diligence.
In my way of thinking, their are so many investment vehicles, funds, etfs, sector plays, and readily available advice in abundance - all basically free - I don't see the appeal of a service like eToro for someone willing to put in even a little thought and research into their options.
Thanks. I didn't think to look on Reddit. Those are all red flags. It's obviously not targeting us.
CNN’s Fear & Greed Index is a way to gauge stock market movements and whether stocks are fairly priced. The index uses seven market indicators to help answer the question: What emotion is driving the market now?
The next 900 points were higher and inflation has fallen to very near 2%
Post See new posts Conversation Carl Quintanilla @carlquintanilla STIFEL: “The next 500 points for the S&P 500 are down. .. the Fed already harvested all the normal post-recession disinflation we would expect. As a result, the sustained 2% Core PCE inflation the Fed seeks is a pipe dream. .. we expect Fed rate cuts to be pushed back further, causing a middle quarters correction for equities.” [Bannister] $SPX
Not my investment style at all, so I would never do it. But as for others, checking a reddit discussion that is rather lengthy and seems totally legit, the comments from users agree on the fact that the spreads are big (not good), and a fair amount of users note some big procedural problems. More than a few mentioned problems when they tried to get money out, and they seemed to be ongoing. Also mention that their prices and transactions are slow and not what one would hope for.
It seems geared to people who want to invest but don't have the time or inclination to do their own due diligence.
In my way of thinking, their are so many investment vehicles, funds, etfs, sector plays, and readily available advice in abundance - all basically free - I don't see the appeal of a service like eToro for someone willing to put in even a little thought and research into their options.
I just don't see why any investor would choose anything but a well-diversified buy-and-hold strategy. I really don't see any other strategy working better.
yeah it's tricky...there are other strategies that have beaten the market.
Something as simple as 'buying the close and then selling at the open' has returned far more than the SP500 buy and hold. I've tried it and it hasn't worked.
There are others.
But practically speaking, AI will just arb away all the 'tricks' to beat the market, leaving us with mostly just buy and hold.
Post See new posts Conversation Carl Quintanilla @carlquintanilla B of A: “.. The soft-landing scenario is unfolding. .. we think a [ten-year yield] decline from 4.35% to the 3.25% area in the next 6-12 months is a good possibility — and likely non-consensus ..”
GURGAVIN @gurgavin THE BIGGEST BEAR ON WALL STREET HAS FINALLY CAPITULATED MIKE WILSON OF MORGAN STANLEY HAS JUST RAISED HIS 2024 S&P 500 PRICE TARGET FROM 4,500 TO 5,400 MIKE WILSON HAS BEEN PREDICTING A MAJOR STOCK MARKET CRASH FOR YEARS NOW
I just don't see why any investor would choose anything but a well-diversified buy-and-hold strategy. I really don't see any other strategy working better.
yeah it's tricky...there are other strategies that have beaten the market.
Something as simple as 'buying the close and then selling at the open' has returned far more than the SP500 buy and hold. I've tried it and it hasn't worked.
There are others.
But practically speaking, AI will just arb away all the 'tricks' to beat the market, leaving us with mostly just buy and hold.
There are other strategies that have beat the market but for how long? Nothing like buy-and-hold well-diversified.
The thread about paying a bill to a cashier for $18.81 in charges with a $20 bill, and the ensuing confusion, had me thinking of the days when stock prices were listed using fractions rather than cents.
I can hardly get me head around what a cluster that was, but it was all we knew at the time - pre 2001 or so.
Like a price of 12-1/8 was used to mean $12.125.
How could this have been? I mean, think of representing the bid/ask spread prices in fractions. The difference is so minutely small.
Can't really imagine the Robinhood traders getting a grasp on anything like that.
Am I remembering this correctly? Hard to believe.
EDIT, found this on the internet from back then:
Chicage Fed. Reserve Bank article wrote:
On January 29, 2001, the New York Stock Exchange (NYSE) implemented decimalization. Beginning on that Monday, stocks began to be priced in dollars and cents, and price changes were allowed to be as small as 1 cent.1 Prior to this change, NYSE stocks were quoted in fractions of a dollar and traded in increments of 1/16, or 6.25 cents. Decimalization of stock markets is relevant for policymakers because it has the potential to affect market liquidity, and therefore the overall functioning of financial markets.
This post was edited 9 minutes after it was posted.
The penalty for institutional traders was erased, and the result was shaving pennies of profit on large trades. The narrative was democratizing the stock market.
The thread about paying a bill to a cashier for $18.81 in charges with a $20 bill, and the ensuing confusion, had me thinking of the days when stock prices were listed using fractions rather than cents.
I can hardly get me head around what a cluster that was, but it was all we knew at the time - pre 2001 or so.
Like a price of 12-1/8 was used to mean $12.125.
How could this have been? I mean, think of representing the bid/ask spread prices in fractions. The difference is so minutely small.
Can't really imagine the Robinhood traders getting a grasp on anything like that.
Am I remembering this correctly? Hard to believe.
EDIT, found this on the internet from back then:
Chicage Fed. Reserve Bank article wrote:
On January 29, 2001, the New York Stock Exchange (NYSE) implemented decimalization. Beginning on that Monday, stocks began to be priced in dollars and cents, and price changes were allowed to be as small as 1 cent.1 Prior to this change, NYSE stocks were quoted in fractions of a dollar and traded in increments of 1/16, or 6.25 cents. Decimalization of stock markets is relevant for policymakers because it has the potential to affect market liquidity, and therefore the overall functioning of financial markets.
Ah the memories. In the mid-90s as an energy futures acct. had to calculate gains/losses on pretty complex derivatives for Shell using DOS. Do you guys remember DOS? And then they brought in exchange-traded stuff.
The thread about paying a bill to a cashier for $18.81 in charges with a $20 bill, and the ensuing confusion, had me thinking of the days when stock prices were listed using fractions rather than cents.
I can hardly get me head around what a cluster that was, but it was all we knew at the time - pre 2001 or so.
Like a price of 12-1/8 was used to mean $12.125.
How could this have been? I mean, think of representing the bid/ask spread prices in fractions. The difference is so minutely small.
Can't really imagine the Robinhood traders getting a grasp on anything like that.
Am I remembering this correctly? Hard to believe.
EDIT, found this on the internet from back then:
Ah the memories. In the mid-90s as an energy futures acct. had to calculate gains/losses on pretty complex derivatives for Shell using DOS. Do you guys remember DOS? And then they brought in exchange-traded stuff.
Of course I remember DOS. Something that obtuse is hard to forget.
I remember the advent of leveraged ETFs as well. First there was double leveraged, and then a few years later, it seemed really adventurous when they offered the first triple leveraged ETFs.
Another big gateway to popularizing investing was the emergence of the discount brokerages, and low cost trading, to be replaced eventually with no-cost trading, which has become the norm.
The thread about paying a bill to a cashier for $18.81 in charges with a $20 bill, and the ensuing confusion, had me thinking of the days when stock prices were listed using fractions rather than cents.
I can hardly get me head around what a cluster that was, but it was all we knew at the time - pre 2001 or so.
Like a price of 12-1/8 was used to mean $12.125.
How could this have been? I mean, think of representing the bid/ask spread prices in fractions. The difference is so minutely small.
Can't really imagine the Robinhood traders getting a grasp on anything like that.
Am I remembering this correctly? Hard to believe.
EDIT, found this on the internet from back then:
Ah the memories. In the mid-90s as an energy futures acct. had to calculate gains/losses on pretty complex derivatives for Shell using DOS. Do you guys remember DOS? And then they brought in exchange-traded stuff.
Took Fortran Four class at Oklahoma State in 1973. Ran a mock Nike inventory program using punch cards.
stock market rose another 12% in 2024 from this tweet.
unusual_whales @unusual_whales The stock market has peaked and will trade flat for the rest of 2024, Goldman Sachs, $GS, equity chief has said. 7:47 AM · May 23, 2024 · 656.7K Views
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