: Nearly 6 in 10 Gen Z investors — and 9% of baby boomers — admit to trading while drunk


Should you have to pass a breathalyzer to make trades on Robinhood

or Charles Schwab


According to a new survey from consumer finance website MagnifyMoney, 32% of U.S. investors say they have made trades while drunk. Gen Z members fell into the trap the most of any generation, with 59% confessing to drunk trading, while 9% of baby boomers admitted to trading under the influence.

This can be combined with the rise in “emotionally charged” investing that traders say they would later regret. Per the survey, 66% of Americans admit to making impulsive investing decisions.

See also: Americans are creating their own vaccine mandates by cutting ties with the unvaccinated

The survey gathered data from 1,116 U.S. consumers in June 2021, and broke down their habits by generation.

The Margin: Drinking at home more during the pandemic? You’re not alone

Kamaron McNair, the author of a MagnifyMoney study published alongside the survey results, said she believes the effortless ability to trade stocks is contributing to more Americans trading while doing other tasks. “One can imagine how trading apps make this easier than in the old days when an investor might have had to call their broker from the bar,” McNair wrote.

Entering trade orders on mobile devices has assuredly made stock trading easier to complete while engaged in other tasks, including imbibing, but why does it seemingly impact younger investors more?

According to the Addiction Center, an informational group for people struggling with substance-use disorders and co-occurring behavioral and mental-health disorders, the gamification interface of trading apps like Robinhood could be a factor.

Plus: Can my employer make me get vaccinated?

“The app’s simplicity and graphic design make trading feel like gaming. The platform has drawn in young investors by presenting complex financial instruments like a fun game,” the organization wrote in a post. “Unfortunately, financial experts believe that instead of helping users, the app is purposely downplaying trading risks. They suspect it to be a method to get users hooked to their platform.”

The Addiction Center compares some brokerage-account usage to gambling issues.

“When a new member joins the platform, an image of a digital scratch-off lottery ticket pops up on their screen. The picture is a welcome stub, a gift for joining Robinhood’s community. The app’s stub promises a free share of stock worth anywhere from $2.50 to $200. If the new trader wants the prize, they have to play by ‘scratching off’ the image like a lotto ticket,” the post continues.

Robinhood declined to comment for this story, citing the company’s ongoing focus on its IPO. The company went public last month.

The U.S. saw a retail trading boom in 2020 and a subsequent retail investing explosion in 2021 as more people began trading cryptocurrencies and so-called meme stocks including GameStop

and AMC

Financial Crime: (Not) made in the USA: Defense contractor sentenced for selling U.S. military millions in goods manufactured in China but labeled as American-made

Previous article

Coronavirus Update: Debate over mask mandates in schools continues as COVID-19 vaccination rates increase among teens

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News