Amateur investing is certainly having its moment.
What began as an upswing in casual day trading during coronavirus lockdowns, spurred on by the love ‘em/hate ‘em free trading apps like Robinhood, has now turned into a full-blown trading revolution thanks to the arrival of Reddit-driven frenzy investing.
At the same time, the rise of so-called “swarm” investing has led to regular people getting burned. Buying equities based on social media tip-offs is, generally speaking, not such a great idea — especially buying a stock while it is hitting record highs or investing your savings into a dog meme cryptocurrency.
And while price volatility and inexperience are definitely big risks for amateur traders, there is another danger that has been largely overlooked but is equally dire: Criminal scams.
All of the new Main Street money flowing…