(Bloomberg) --  Newly minted day traders have questions. What’s an exchange-traded fund? What’s a value stock? What’s a resistance  level? Errol

Social Influencers Feed the Robinhood Hunger for Investing 101

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2021-06-06 23:30:06

(Bloomberg) -- Newly minted day traders have questions. What’s an exchange-traded fund? What’s a value stock? What’s a resistance level?

Errol Coleman is ready with a video explainer. Pointing to a line drawn at the top of a stock price spike, he says, “We already know this is a resistance , because it tried to push up and got rejected.”

Coleman, with almost 158,000 TikTok followers and over 5,000 YouTube subscribers, is one of the growing number of influencers on social media looking to educate rookie day traders.

He’s not an investment professional — in fact, he’s still in college. Financial bona fides are rare among these influencers. That doesn’t mean their information is useless, but it’s nothing like advice from pros who are mining market data with robots. And the dangers of investing don’t vanish just because stocks have staged one of the greatest rallies on record.

Still, demand for trading how-tos is off the charts. TikTok videos under #robinhoodstocks have more than 3.1 million views, and Coleman is near the top of the site’s #daytrading. The senior at Adams State University in Colorado studying business marketing offers explainers on everything from spotting a short squeeze to penny stock trading.

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