Insufficient, inaccurate and misleading information is often spread through the Internet. Due to the lack of time and rather balanced thinking, this information is used to make important financial decisions without certainty. This is called Idiot stands for Computer Based Inhibitory Therapy (IDIOT). 9 out of 10 ill-informed business owners are financially ruined.
Sensex and Nifty, the sensitive indices of the Indian stock market, are setting ninth highs and share investors have gained a few lakh crores in a day. If we look at the global ranking of the stock market, the size of the Indian market will be at the fourth position. The long-term view of the stock market is that the Nifty will reach 1,50,000 in 15 to 20 years. While India as an investment hot spot has a bright side as a trusted destination, the published, dark side of the same coin is the damaging investment decision-making process that has been described as the 'idiot investor'. This investment is epidemic infodemic in nature and it is now necessary to ensure that you or your friends and relatives are not exposed to this hidden but rapidly growing infectious or communicable disease. Because, 9 out of 10 patients in such transactions die from financial perspective and that is why cautionary notices are constantly issued by SEBI. Let's look at this 'idiot' disease in investment, its nature and solution in a little detail.
'Idiot Investor'
With the help of the Internet, information is spreading rapidly, universally and cheaply (for free), and now Google has made it easy to increase knowledge; But this is what causes inadequate, wrong, misleading information to spread rapidly. Due to the lack of time and even more balanced thinking, information is used without certainty to make important decisions. This is called Internet Derived Information Obstructive Treatment IDIOT or adopting a decision system. It is most commonly used as a health remedy. Blind devotees who start treatment by believing in the symptoms of their illness and the 'panacea' remedy actually increase the illness and cause damage. After reading that eating guava leaves reduces sugar, people seem to accept and use them immediately. Such information-based treatment is more deadly than the Corona epidemic, which the World Health Organization has called an 'infodemic'; But not only in the health sector, but also in the investment sector, this disease has increased the infection to a large extent, and young technologists are the most among them.
'Financial Idiots', a coalition of self-proclaimed market experts and finnfluencers, who come expecting big profits in a short period of time after watching a little information on the internet and a couple of YouTube videos. They can be called 'fidiat'. Dwindling employment opportunities, free time and cheap internet access along with smart phones are all fueling the financial frenzy. Some shrewd organizations and individuals lure the greedy by advertising that they will give instant and guaranteed tips. They are brainwashed with false information screenshots and constant contact servants and in short term losses and indebtedness. On top of that again, by giving advice to buy, they encourage averaging and lead to a deep hole. All this happens through various techniques like day trading, options (futures market), forex (foreign exchange trading), crypto (currency).
The message of faith and patience is very important in the field of investment or the eternal truth that the stock market returns best only in the long run. Investments are a great tool being defamed by the behavior of greedy financiers and caution is the only solution. Despite SEBI's mandate that only registered financial advisory firms or individuals should be in this field after continuous study, analysis, they spend full capital for short-term gains. They do not see danger. As financial investment opportunities expand, avoiding financial madness becomes the first important duty of investment wisdom.
SEBI's Risk Disclosure and Notification
All brokers and intermediaries are now instructed to publish risk disclosures and notices to protect investors from such illness or loss. According to this, only 1 out of 10 people gain benefit and 9 people suffer loss in such transaction, it is prominently published and the average loss of 50 thousand has been incurred in this study. Taxes and other charges in the futures market account for 28 rupees of their 100 rupees as transaction costs, leaving the actual margin of profit very low. Gross profit decreases by 15 to 50 percent. SEBI seems to have taken precautions to ensure that general investors do not get financial loss by understanding such suggestions and cases.
Be careful
Due to the use of internet and smart phones, financial transactions have accelerated and frauds have also increased. Deceptive techniques have been developed to get a lot of returns in a short period of time. Care should be taken to avoid all these dangers. Importantly, since we make this decision ourselves, we remain responsible for our losses rather than others. Although SEBI endeavors to prevent improper or fraudulent use of the information, techniques obtained, the final decision rests with us. The number of demat holders in the financial market and especially in the stock market has increased from 1 crore to 5 crore in the last 5 years and young investment contracts and new technology users are increasing. Idiots or financiers are created when the impulse to make quick profit is sought to be achieved through the use of new technology. An important reason for this is the neglect of financial literacy and financial prudence that comes from it. A free, guaranteed profit tip or investment advice is a path to huge losses and in the futures market, Warren Buffet has called it a weapon of mass destruction of wealth. Many have experienced it.
