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by ayende
1639 days ago
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I wonder how much abuse that kind of platform can generate. We had the Wall St Bets community pushing certain stocks, and the logical step of something like this is copying a trader. At this point, aren't you likely to run afoul into multiple issues? Off the top of my head: * if you are charging for others to follow your trades, aren't you in a financial advisor capacity?
* is there a risk of insider trading accusations?
* what would be the equivalent of rage quitting? (sell it all, right now, where people copy it). Even avoiding the issue of copying trades automatically (or blindly), isn't there an issue here with gaming the market? I have two trade accounts, one of which I make public. I open a position on one side (in the private account) and then I push / pump the other side on the public account. End result is a big loss for the public account (and any followers), but I was able to make money on the private one. |
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- I'm not providing stock recommendations to you nor am I providing personalized investing information. Everyone has access to the same information on the platform and sees the same trades unlike financial advisors.
- It's not setup to auto trade at the moment (and likely won't be in the future) for that edge case in specific. You have the option to click on the trade, and replicate it in your own brokerage.
- Agreed that this can have influences on the market like we saw in r/WSB. I think the more optimistic approach here however is this being another source of insight to help you make investing decisions. E.g. "I'm considering buying $XYZ. Who else owns it that I follow and trust?". This information is verified too so it's not like Reddit where people have the ability to lie and post whatever they want.
Would love to learn more about your public/private account play/scheme. Can I DM you to learn how it worked? I figure that the volume needs to be quite high no?