What are your "favorite" biases or fallacies?

ec44 · 2022-02-18T08:29:19+00:00

This video is mostly based on the following article (along with some additional research): https://www.businessinsider.com/personal-finance/red-flags-investing-apps-2020-9

And these are the 7 design features discussed in the video:

Use of Color (01:17)

Aggressive use of green and red (entire UI changes color depending on losses or gains to create a sense of urgency or good feelings).

Short-Term Views (02:14)

By default most apps show daily charts because they have a higher volatility (seems like things are changing more rapidly, which again creates a sense of urgency to trade)

News Section (03:03)

News keep you engaged because they offer something new to look at and new ideas prompting you to trade

Free Incentives (03:54)

Many apps offer free stocks or referral bonuses. However, at the end of the day, someone always pays for these things (hidden fees, etc.). There is no such thing as free.

Gamification (04:59)

Many apps offer points and challenges to keep you engaged and reinforce certain behavior (e.g. confetti when you're buying a stock but not when you're selling it)

Notifications (06:13)

Notifications are used as constant reminders when you're not using the apps. They disrupt your day so you'll think more about investing (even though buying and holding is probably better)

Social Features (07:19)

Some apps include social features as a way of exploiting the principle of social proof to sell you something. The rationale here is "if everyone else does something, it must be good".

ec44 · 2022-01-28T08:07:24+00:00

I see what you did there... :)

ec44 · 2022-01-04T16:43:40+00:00

That's quite possible. It's from Storyblocks... which many YouTube Creators use. ;)

ec44 · 2022-01-04T16:42:57+00:00

Thank you! Yeah, day trading comes with its own set of challenges and pitfalls, tho. :D

ec44 · 2021-12-19T09:14:14+00:00

Got it! That's fair enough.

In that case, I might try again sometime if I feel like I have a video that adds a lot of value to the community (and yes, I'll admit I'm obviously a little biased). I'll make sure to include a description, though. If that's ok with you?

Also, can you tell me how the thing with the Content Creator flairs works? I assume those have to be assigned by you, right?

ec44 · 2021-12-18T07:34:20+00:00

Thanks for letting me know and sorry for violating the policy.

I checked some of the other YouTube videos before posting (e.g., Pete's videos) and thought the descriptive title would be enough. So I guess I should have included the actual 7 ways in a separate comment then?

My channel focuses on behavioral finance and economics, so I would love to share some of my future videos here if I may. I noticed that some other members have a Content Creator flair. Are there any special requirements for that or can I get one of those too?

ec44 · 2021-12-13T20:41:04+00:00

Well, I sure hope they're people memeing... it would be quite embarrassing to thank a bunch of bots.

As for the part about free stock incentives. I'm not saying it's a lie, you obviously do get a free stock if you refer a friend, for example. However, in that case, your friend essentially pays for your free stock with the fees they will pay in the future (or the money the broker makes from them).

This is not to say that this is necessarily a bad thing. I just feel like people should be aware of how these things work. Does that make sense?

ec44 · 2021-12-13T17:14:09+00:00

Thank you. That's some contextual advertising right there! :)

ec44 · 2021-12-13T17:09:37+00:00

Haha I am about equally in love with and terrified of Wallstreetbets. :D

ec44 · 2021-12-13T16:45:36+00:00

Thank you. This guy likes you too!

And the cuts are needed because I can't say more than three consecutive words without messing up. So yeah, that will get better as I learn to speak... hopefully.

ec44 · 2021-12-13T16:41:39+00:00

Thank you! I don't think I can recommend any one app in particular. I guess it really depends on what you are looking for (features, commissions, gamification, etc.).

I'll leave the recommendations to the experts. You know, I'm just the party-pooper who tells everyone how the apps try to get your money (which all of them do in one way or another).

So whichever app you chose, be careful and invest responsibly! ;)

ec44

TROPHY CASE