The stock of GameStop, a video game retailer, was trading around US$20 before becoming a household name in early 2021. It suddenly rose to nearly $350 per share, without any fundamental changes for the company 91裸聊视频� and brought the wild world of cyber-investing into the spotlight.

Apps like Robinhood have 91裸聊视频済amified91裸聊视频� financial trading and provided bored and COVID-isolated gamers with a financial outlet for their speculative urges.

There91裸聊视频檚 nothing special about what91裸聊视频檚 happening in a historical financial sense. Trading is fundamental to human society, whether it91裸聊视频檚 physical or digital. Some evolutionary psychologists even believe humans91裸聊视频� need to deal with the complexity of trading between early societies affected the development of the modern human brain.

Figuring out the value of an asset is hard, and perceptions of value can differ widely for different investors. That91裸聊视频檚 why so many people will jump on a hot trend or stock 91裸聊视频� it91裸聊视频檚 easier to follow a crowd that91裸聊视频檚 already decided there91裸聊视频檚 some value to be had there.

The problem with that approach is that value is so subjective. In free markets, the price of a stock is really whatever someone is willing to pay for it.

But speculating and trading are not the same thing as investing, as anyone who lost money on an ill-advised GameStop bet can tell you. Research and due diligence are much safer ways to evaluate the potential value of a company than strategies predicated on message boards and hope. Once you understand a firm91裸聊视频檚 underlying value and what drives it, you91裸聊视频檙e in a much better position to figure out if its stock is suitably priced.

The online Reddit chat rooms that power the trading in GameStop started with enthusiasts but have grown to include sophisticated players willing to take advantage of the inexperienced. That91裸聊视频檚 also nothing new, which is why financial markets are highly regulated. The unscrupulous have been relieving the trusting of their valuables since well before stock markets appeared in the coffee and teahouses of Europe in the 1500s to finance the exploration and trade to 91裸聊视频渘ew worlds.91裸聊视频�

Speculating on these apps isn91裸聊视频檛 unlike children91裸聊视频檚 games like as Roblox91裸聊视频檚 Adopt Me game 91裸聊视频� which also became hugely popular during the pandemic. The game lets players trade pets with each other. The most rare and in-demand pets are the most expensive. All pets have a rating that helps kids ballpark their value 91裸聊视频� not unlike a brokerage analyst or a credit rating analyzing a company.

Players don91裸聊视频檛 always agree with that assessment of value though, and that91裸聊视频檚 what 91裸聊视频渕akes a market.91裸聊视频� There are great opportunities to acquire amazing pets that a player considers far more valuable.

But anyone who isn91裸聊视频檛 aware of the ratings or a pet91裸聊视频檚 true value can make a bad trade and accidently give away something really good 91裸聊视频� or agree to a trade that leaves them with a dud.

Not unlike what91裸聊视频檚 happening with Robinhood and GameStop.

You can learn more about Adoopt Me and what it teaches us about real-life trading .

Romina Maurino is a freelance journalist and the editor of .

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