this post was submitted on 28 Oct 2024
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[–] [email protected] 1 points 3 weeks ago (1 children)

People aren't using Robinhood to invest in index funds via their 401k, they're using it to "day trade" which is just gambling. Nobody is saying that investing = gambling, they're saying that buying and selling shares or options in a single company in order to time the market = gambling.

[–] [email protected] 1 points 3 weeks ago

Robinhood has IRAs, and you can totally buy diversified ETFs with it. When I used Robinhood for a few months, that's basically what I did.

Options can be part of a legitimate strategy (e.g. my brother sells covered calls on dividend-yielding stocks, where the intent is to juice returns a little on a long position), but yes, most people who trade options are gambling.

My argument is that investing != gambling, and the difference is whether there's a positive expected return. That's a statistical question, not a "I am smarter than the next rube" question.