Letters | Gamified trading: beware apps that turn stock trading into a dangerous game

Walking down a random street these days, we easily come across advertisements for stock trading apps with eye-catching slogans, illustrating the prospect of getting rich overnight. In highlighting the possibility of finding short-squeeze stocks with the apps, stock investment is portrayed as a numbers game that is easy to master.

Nevertheless, I believe that gamified trading would only add an irrational factor to the stock market by oversimplifying stock trading.

On gamified investment apps that display bouncing stock prices and attractive investment “missions”, users can get a thrill not unlike playing an online game simply by clicking on the interface. In contrast to traditional apps which aim to provide stock information, the gamified version offers users rewards that can be obtained by accomplishing tasks such as attaining a certain day trade volume, coupled with cute mascots that characterise investment as a game.

To keep the “players” playing, gains are exaggerated with celebratory moments, while losses are beautified as market turbulence. Inevitably, even inexperienced “players” are induced to believe that they are currently “beating the market”, although most of them are actually losing.

Some may argue that the apps provide platforms for young investors to exchange ideas. Nevertheless, discussion doesn’t necessarily lead to wiser decisions. Rather, the discussion panels on the apps, which are populated with fanatic, inexperienced “gamers”, prove to be a driver of herd mentality bias, meaning that investors are influenced by overreacting comments.

It is even more worrying that investors cease to examine the financial performances of companies and solely focus on pushing up the stock price through a “strong hold” position.