Apr. 19 at 7:14 PM
We’ve all seen how susceptible
$HOOD is to market weakness/downturn
When markets correct, people stop trading, AUM drops and sentiment goes fearful
$HOOD users also have high risk tolerances generally. We all love to own the high volatility names hoping for higher returns than customers at a legacy brokerage who are content with a 60/40 split
But this also works in the opposite direction. We saw this in 2025
When the Stock Market is strong,
$HOOD performs incredibly strong
People get excited and deposit more money, trade more actively and everyone is happy.
We all know
$HOOD will be incredibly successful in the future but the key is knowing when markets become weak and trimming down the position to avoid 60+% drawdowns
