Loss aversion & Robinhood questions, with Dr Richard Smith

Younger people have flocked to platforms like Robinhood during the pandemic, making trading the pandemic hobby of choice.

But how does Robinhood make its money? If something is free, there’s every chance that you are the product.

My guest on the podcast today is Dr Richard Smith.

Known as “The Doctor of Uncertainty”, Dr Smith has spent his life comprehending market risk, empowering traders to become savvy investors.

Richard studied mathematics at U.C. Berkeley and earned his PhD in Systems Science from the Watson School of Engineering at SUNY Binghamton under the late Professor George Klir.

Richard is also Chairman of the Board and CEO of Foundation for the Study of Cycles, an international nonprofit that promotes and conducts research of cycles and how they can be used to make the world a better place.

His commentary has been featured in Forbes, CNN, BBC, MarketWatch and many others.

During this conversation, I chat with Richard about how loss aversion influences our investment decisions, how Robinhood is making its money, the insurgency against Wall Street being coordinated on Reddit, and much more.

Here’s my conversation with Dr Richard Smith in episode 532 of Informed Choice Radio.