With Covid-19 pandemic and lockdown in progress (that has really thrown out many from the work) there is really a boom on the creation of the trading accounts. It is noted that Robinhood itself added more than 3 million accounts during pandemic.
Most interesting fact is that "amateurs" are testing waters without any formal education in the name of "buying the dip". But real question arises how they did find the "dip" without any education and experience.
In name of buying the "dip" some of the investors really purchased the shares of bankrupt companies like Hertz Global Holdings Inc. and J.C. Penney.
Most of people are out of work and investing their saving in name of buying the cheap stock. This can be really catastrophic when these stocks will further plummet and not able to recover .
Lack of knowledge about how the market work and access of complex financial tools to inexperienced players , really caused the suicide of robinhood customer
Are we going to witness something terrible in coming days?
Posted Using LeoFinance