Key Takeaways
- The Design: Trading apps use casino psychology (colors, sounds, variable rewards) to keep you addicted.
- The Conflict: "Engagement" is good for the app (fees/data), but bad for the investor (over-trading).
- The Fix: Use boring apps or turn off notifications.
Introduction
Investing used to be hard. You had to call a broker. It cost $50.
Now, it's free, fun, and on your phone. Robinhood throws digital confetti when you make a trade.
This "Democratization" seems good. But is it turning Wall Street into Las Vegas?
Deep Dive: Dopamine Investing
You Are The Product
Free trading apps make money by selling your order flow to high-frequency traders, or by encouraging you to trade options (margin).
They need you to trade constantly.
But successful investing is about inactivity. It's about buying and holding for 20 years.
The Casino Tricks
- Push Notifications: "Bitcoin is up 5%!" triggers FOMO.
- Red/Green Flashing: Triggers urgency.
- "Trending" Lists: Encourages herd behavior (buying what everyone else is buying, usually at the top).
How to Opt Out
- Delete the App: Use a desktop-only broker (Vanguard, Fidelity).
- Automate: Set it and forget it.
- Ignore the Noise: The daily fluctuations of the market are noise, not signal.
Summary
If your investing app feels fun, you're probably doing it wrong. Investing should feel like watching paint dry.
