HOW TO MAKE EASY MONEY SHORTING THE STOCK MARKET

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Lets talk about the Robinhood Investing Platform, how they use your data, and how people are making easy money shorting their Top Movers Section - Enjoy! Add me on Instagram: GPStephan - CLICK SHOW MORE FOR SALES

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This study argues that the simplicity of this design SUBCONSCIOUSLY directs their users to invest in the stocks that just happen to catch their attention…and what’s more likely to catch your attention than the TOP MOVERS?

In terms of how big of a deal this is…the study goes further to say that Robinhood users are MORE LIKELY to be influenced by those choices because:

One, half of Robinhood users are first time investors, who are heavily influenced by chasing returns without developing their own method for selecting stocks.

Two, the Robinhood app directs users attention to the SAME subset of stocks, while offering limited additional information that might lead to a different choice.

Third, the simple design makes it EASIER to rely on Robinhood’s information than on their own critical thinking.

Fourth, the app is SO EASY to use that it allows users to place trades nearly instantly…without the time to fully consider and think through what they’ve just done…

And fifth, because Robinhood users are more likely to buy and sell stocks within a short window of time - they’re more likely to trade speculatively, rather than invest diligently or the long term.

In other words, a large enough portion of Robinhood users are simply investing in the Top Movers Section without doing much research, and those stocks tend to see a 14% HIGHER Price than they would’ve seen, otherwise…with a subsequent 5% loss over the next month.

This is ESPECIALLY common in the companies with less than a $1 Billion Dollar Market Cap featured on Robinhood, which are much more easily influenced by investors buying in and driving up the price. This study analyzed almost 4,900 of these “herding events,” and found that 63% of the time, selling right after the price goes up, and then buying back in 5 days later, resulted in a 3.5% above market return.

First of all, DON’T EVER jump into a stock just because you see it going up in price. There’s enough research that suggests, at this point - jumping into a hype stock is a bad idea, prone to a quick reversal, if you jump in too late…which, chances are, by the time you see it on the top movers list - it’s already too late.

Second, NEVER buy into a stock without having researched the company to the point where you know how they make money, you understand their basic fundamentals, and you invest an amount where you still have enough left over to be properly diversified.

Third, yes - there ARE a small subset of people who are profiting from this information by shorting stocks and then buying them back at a lower price, but for 99.999% of people watching - I don’t recommend it.

Robinhood is still a good platform to use and they changed the game with $0 stock trades….but, their easy, game-like design also poses a threat to people who have no clue what they’re doing and just buy into the trends.

Instead, I’d just recommend people stick with the basics: smash the like button, invest diversified funds long term, keep buying consistently, and hold for as long as you can.


*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
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Well this aged well, who’s here after gamestop

jack_attack
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Hope you shorted GME. Cause I AIN'T SELLING

Jacb
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Your videos are really amazing and you are one of the best investor on YouTube!! Keep it up Stephan!!💯💪

actuallybusiness
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This video didn't age well... GME to the

derekderek
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Hey Graham, just wanted to say I got really into personal finance this year because of your channels. I studied CS when I lost my bartending job from the pandemic in march, I build a budgeting website (kind of like mint) in July and now I am a software engineer at JP Morgan!

ubersuitup
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The price for the youtube academy 5 days ago was 299. When I head the $200 off I was gonna buy... To my surprise the price went up $100.

GoSocialOnline
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Man your channel is definitely one of the best on YouTube when it comes to investing. Thank you!

mkz
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Well thought out and researched. Effort & results appreciated!

ryfreedman
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They way you have branded yourself around smashing the like button is actually so impressive

thecollegehustle
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No doubt were entering a new era in the stock market, cant wait to see what it has in store but I'm loving the volatility, and my wallet is as well😂

jesxs
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I think this is the only channel on my Subs list that I will watch regardless of a clickbait title, because I KNOW I'll learn something from the video. Way to make your own algorithm killer, Graham.

squegg
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Great segue from one seat to the other. Thank you Jack!

jeffmac
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Watching selling sunset on Netflix with my girlfriend and freak out when I see a Stephen Graham. Just sitting down silently plotting to make more money

Alex-zdtx
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As existing investor I have come to realize overconfident and trading with emotions is bad.
Follow your trading strategy not your emotions. Losing can eat away at your confidence, while winning can lead to overconfidence. If you stick to your strategy and routine, emotions will be less likely to affect your behavior. And always wish yourself the best.

novakrico
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This was an incredibly useful video as a new robinhood user. Well researched video as well, thanks for putting in the time. Crucial channel I follow

seanl.levine
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Anyone get recommended this during the whole GameStop thing?

lucabuca
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I feel like more people would "Smash the like button" if there was an option to do it when you're in fullscreen on mobile

thomasgormanable
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Trying the course Graham. Congrats on your well-earned success.

purepatrick
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I do trade on Robinhood, but never actually even looked at the 'top movers' before. Great video Graham. Of course I smashed the like button.

elizabeths.
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The irony of this is that Robinhood users are now going to place huge yolo bets using the methodology that you are laying out

mikeott
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