If we've learned anything from RobinHood, it's that individuals are interested in investing in the stock market, no matter whether small or large amounts of money. I've said for a long time that it's good for the overall economy and for growth that people be interested, invested, and involved in the stock market. Whether you are disappointed or not with the recent or current events that have happened with RobinHood you can't deny that having access to an investment platform and the ability to purchase shares of stock or even fractional shares of stock is a game changer. It serves a purpose.
Many people argue that the policies, methodologies, and the way the RobinHood app is set up is unfair and takes unfair advantage of beginners getting into the stock market. They will say that these RobinHood investors or the "dumb money" as they say, is not good investment management or strategy, and that as a whole they're losing money. Hey I mean it's easy to see why because when you're just picking stocks after looking at data that everybody else is looking at and trading based on momentum, Your stocks aren't risk adjusted when you populate your stock portfolios. Not to mention the more complex cryptocurrency's or options trading that are available but are certainly more advanced and difficult to understand, let alone risk-adjusted or "hedged."
Nevertheless RobinHood isn't even the only platform that offers fractional shares or the only platform that can be accessed from your mobile device to trade on your own. What the RobinHood revolution proves is that more and more people whether it's because they have more time, or their home more often, or because there were fewer sports games this past year due to the pandemic, were sick of politics in an election year, etc., are interested in and are beginning to invest funds into the stock market and stocks or other investments managed by themselves. Technically a day trade is when you buy or sell the same stock in the same day and I'm not really talking about day-trading. I know if you wanted to do day trading you're severely limited with a smaller portfolio that you're managing yourself. For example, I believe Robin Hood limits three day trades before they label you a day trader and you are required by law to have a minimum balance of $25,000 before allowing day-trading.
This is why I propose a new business idea that I don't believe exists anywhere or I have never seen it before.
Imagine an Internet Café that is also a meet-up or HubZone for traders to hang out and have a coffee or warm beverage and review their investment portfolios from their phones or laptops portable devices.
We have sports bars where people meet up to drink with other people who are also interested in watching sports and people can meet up to watch specific games. This will be a similar concept as the Internet café would be themed around stock markets and the TVs in the background on mute would be streaming finance channels and they would be Tickers of all stocks streaming. Others would meet up to talk about and review their stock portfolio with their friends or there could be designated financial advisors that work for the Internet café and they review your portfolio and recent trades and give you advice in exchange for a fixed fee plus tip.
One of the main lessons from the recent fiasco with Robin Hood not allowing individual investors to invest in certain stocks that became highly volatile is individual investors whether they be new investors or not with a large portfolio or not may come across certain situations where they need to trade larger amounts or analyze certain data or a certain pattern or strategy that they have found would require advanced software such as the Bloomberg professional software which is prohibitively expensive for a hobbyist or a beginner coming from his RobinHood or Webull or E*TRADE accounts.
Could there be a way to lease the software Bloomberg portal for professionals on leased equipment by the hour?
Would there need to be special regulations such as teaching people rules about following insider trading law, privacy policies and laws, nondisclosure agreements (member to member and employee to member). They would also have to be advanced security around the clubs public Wi-Fi usage as there may be privacy concerns here too with people logging into financial accounts where others could potentially access it for malicious purposes.
Please contact me if you were interested in this business model or if you have any insights into the feasibility of leased Trading equipment that is normally prohibitively expensive and is set up on par with professional traders and high speed high frequency traders as well as the professional software such as the Bloomberg professional trading platform.
Thanks for reading,
Steve
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