Day to day thousands of people getting attract to stock trading activities. Most of them entering to the day trading or stock trading activity to make money utilizing trading possibilities heard from various sources around. They would this become active day traders than long term investment oriented value/growth investors. What are the major factors behind attracting people to trading activity than stock investing? Here is a short study on the subject…
Greed
Greed is the number one factor behind attracting people to stock trading, well known as day trading. General perceptions about stock market is the place where people able to make money immediately. Greedy people thus attracted to day trading to become rich in a fortnight. They are violating the rule “the requirements of patience”.
Influence
Influence of friends, colleagues, relatives etc.. are another major factor to attract people to stock trading. Some success stories of friends or others would add spice to it and people want to test their luck too with stock market as a day trader. Such thoughts immediately lead them to the nearest stock broker to open an online trading account and start trading activity in the very next day. They are this violating the rule ‘Follow the public blindly”.
Hobby
Although investment is not meant for hobby, there are still lots of people considers it as a hobby or side business. Housewives are the top in this cahtegory by spending some free time to trade stock from home. Stories of others from various magazines would encourage them to this wrong time pass business. Working people also sometime find attracted to stock trading as a part time hobby or work.
Gambling
Good number of people considering stock trading as a gambling and a place to make money though gambling properly. With this mind set, some of them enter to stock market with an intention to test their luck.
Media influence
Most of the financial newspapers and channels recommend stocks for day traders in a daily basis. It not only recommends the price, but also provides the possible profit opportunity by giving an exact number besides the stock. This would certainly attract ignorant people to have a look and enter to market as a day trader. They are violating the rule; do not take advices from unknown self proclaimed ‘Gurus’.Whatever the reason above, trading in stock market is dangerous. It is not at all the place for make money fast and gambling does not work with stock markets. To understand and avoid mistakes, ensure you are well in the sense of knowledge on the difference between trading and investing.
Sherin Dev is the founder and editor of Investinternals.com Blog. Learn more about him here. Follow him on Twitter @Moneyhacker or be in touch at Facebook. If you have any queries, contact him at investinternals@gmail.com