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Stock Trading Apps can be as Addictive as Gambling

Financial Advisor Paul Winkler compares traditional vs. new investors, dissects trading apps addiction, how the halo effect plays into decision-making and more.
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Financial Advisor Paul Winkler dissects recent headlines on mutual funds, hedge funds, trading apps, and financial planners — asking the key question: What should we really be thinking and doing to protect our financial security?
Winkler contrasts the traditional, long-term investor with younger, hands-on traders using modern “game-like” trading apps — platforms designed to keep users buying and selling. He highlights one article’s stunning claim that 90% of app users lose money, noting that the app’s business model profits from the activity itself, not your gains. The longer you trade, the better it is for them — regardless of whether you win or lose.
When it comes to working with a financial planner, Winkler urges you to understand the fundamentals of your portfolio by asking:

  • What am I doing?
  • Why am I doing it?
  • How does it work?

He also warns about “The Halo Effect” — the tendency to trust good-looking, confident people without questioning their advice.
For investing discipline, Winkler offers the Warren Buffett test: Don’t chase the market’s short-term swings. Instead, invest in strong, fundamentally sound companies that can weather ups and downs.
Finally, he breaks down a Bloomberg piece on Jim Cramer and Mad Money. The article claimed that doing the opposite of Cramer’s picks in 2025 would have made you money — a cautionary tale about blindly following TV pundits.
Winkler tells his clients the best advice is "Diversification and Patience."

This program is paid for by:
Paul Winkler, Inc.

This story was reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.


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