Trading Stonks All the Time!
Topics: 24/7 Stock Trading, 9-to-5 Workday, and Stock Splits
24/7 Stock Trading
Robinhood users will soon be able to make stock trades from 7 am to 8 pm. Vlad Tenev, the co-founder of Robinhood, said that this is a push towards 24/7 stock trading. Given that Robinhood is filled with retail investors, this is a logical step for individuals who have busy workdays. I was wondering though if 24/7 trading will add more volatility to the market since there are no breaks between trading periods. Without having “down” hours, investors may be more inclined to act with emotions rather than fundamentals. Or maybe this will smooth out any volatility since trading volumes will not be as significant at the market open or close. Regardless of all of that, this means you can lose money whenever you want soon!
Want to learn more about Robinhood? Check out my recent post about Robinhood down below!
9-to-5 Workday
I recently came across a piece by Emily Laber-Warren about ending the 9-to-5 workday. It is a topic that I thought about in passing over the past year. The part that stuck out to me is that “...workers are more creative and leaders more charismatic when they are not sleep deprived and when their work and biological sleep schedules align". It seems like such an obvious point, but it is also a reminder to take care of ourselves. When we are overstressed and overworked, our creativity and productivity suffer. I highly recommend going on daily walks to help with burnout. When you do, you can run into some EPIC moments… like coming face-to-face with a goose!
Stock Splits
Companies like GameStop and Tesla get enough coverage as is, but their stock splits deserve a discussion. When checking out the last week, GameStop and Tesla significantly outpaced the S&P’s return. Stock splits do not change the value of a company, but many people viewed the news as “bullish”. I think that stock splits are not as appropriate anymore, as many brokers allow you to buy fractional shares now. Perhaps I am wrong though. There has to be a behavioral component of a stock split where investors like to hold on to whole shares.
Lifestyle Column
Washington Nationals
I cannot help but be in love with the Washington Nationals’ new jersey. I am not alone in this as the Nats set a “record number of sales” among MLB’s city connect uniforms. If you are wondering if I am getting one of these jerseys … the answer is YES!
Gamestop
I already know what you are thinking, “Jakob, are we really talking about GameStop TWICE in one newsletter?”. Unfortunately so. As much as I love to meme on GameStop, I am actually really impressed with how they are changing around their e-commerce. Via their Twitter, they are leaning heavily into PC parts and peripherals. I did not know what to expect when checking out their website, but they have a pretty good inventory of stuff (with a lot of discounts). Without me even noticing, GameStop may actually be attacking a sector with strong consumer demand.
Weekly Leo Pic
Sources
https://news.gamestop.com/static-files/5af6f18f-71a0-45c6-a0c4-11ac4558c20e
Increased trading hours could increase the 'gamification' of trading which would likely increase emotional trading. Love the walks! I do it myself everyday with an investing podcast or two. Very interesting points about Gamestop, another fantastic read!