No Shiny Objects Here - Key Takeaway

Wall Street was built on the backs of everyday, Joe six-pack traders. The big firm’s interests are in their profits, not yours. They win whether you make money or lose, so of course, there is a natural conflict, and they want you to actively trade. They want you to chase the new shiny object because it benefits them via trading costs, bid ask spreads, fund expenses, ext. Wall Street bankrolls the biggest and best marketing firms in the world to help them create media and technology designed to grab your attention and keep you engaged. These new applications can be very dangerous technology making false claims and gamifying trading. The bottom line (or BL like my Dad says), the world would be a better place if they did not exist.

The same engineers hired by Facebook back in the day, the people who created the “Like” icon and bell notification, are the same people building today’s trading apps. When you like something on Facebook, that thumb image is designed to produce an endorphin hit, make us addicted and want more likes. The same goes for trading stocks. The visuals, the audio behind it, and the way the interface works with the user, in our case, the investor, is all by design. It’s meant to hook you so you want more.  And remember the house always wins.