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"The stock market is filled with individuals who know the price of everything, but the value of nothing." — Phillip Fisher
No matter the age, gender, beliefs, most of us spend a considerable amount of time on various social media platforms. And most of us are generally influenced by what we see there. It was still okay when we were told to believe that taking 10 holidays a year was supposed to be normal. Seeing everyone was so successful it felt like I was the only one lagging. It felt as if all of humanity was driving luxury cars, sipping martinis and soaking in “Vitamin Sea”.
Research suggests that millennials were prone to buying more things and spending more on products they saw on social media of other users, because of an effect called FOMO, Fear Of Missing Out. The feeling that I will be an outcast if i don't do the same thing is what defines FOMO. Even then, I was willing to forego everything that could potentially make social media toxic. I believed that as an individual I have to decide for myself what makes sense and what doesn't.
The story began when Youtube channels and twitter handles became our go to source for information. This is actually one of the things I absolutely love about social media - information is available so easily all the time, in different forms which makes it amazing. Information is available in a somewhat entertaining way which keeps the viewer/reader hooked.
So, when I say that it is also very worrying at the same time, it's because as humans we want to believe in pictures and posts we see on social media. We want to believe that it is so easy to make money or start a side hustle. It is made to sound like everyone is doing it, everyone is making money in the stock market, everyone is predicting price movements correctly.
Everyone was using these unsolicited tips to try and make money, and losing their hard earned capital. “People always talk about their winners''. Sharing screenshots of profitable trades began to pour in, 14 year olds making lakhs in one day. But no one was losing money (how is that even possible right?). On days when the market went down by 3%-4% , I would see people powst screenshots of mammoth profits. “I easily make 20% every month for my clients” was a response I got from someone at a networking event. Now that may be true (that they are making 20%), but “easily” and “monthly” is where they lost me.
“How to pick stocks in 10 minutes”, if that doesn't interest you, then maybe “How to pick stocks in 1 Minute” will. Yes, these are all legitimate tips and tricks available on social media ( try putting these phrases on youtube and see what it leads you to). If stock picking were so easy, why don't we have more millionaires? Surely if by spending 10 mins I could find the perfect stocks, I should be pretty well off. Every person viewing these videos thinks it is free information, but it’s not, the person creating these videos gets paid for every view, so there is every chance that they have to keep it interesting to stay relevant, because no one likes to talk about Asset Allocation, and financial planning and all things boring. All these so called ‘influencers’ will sell you anything and everything to stay relevant, doesn't make them a bad person, but maybe they aren't the best source of investing/finance information. Don't get me wrong, there are some youtube channels and twitter handles, and Instagram pages that give out genuine information (not advice), which is helpful in more ways than one. But sharing information is one thing, and recommending investment ideas and tips is another.
No matter the age, gender, beliefs, most of us spend a considerable amount of time on various social media platforms. And most of us are generally influenced by what we see there. It was still okay when we were told to believe that taking 10 holidays a year was supposed to be normal. Seeing everyone was so successful it felt like I was the only one lagging. It felt as if all of humanity was driving luxury cars, sipping martinis and soaking in “Vitamin Sea”.
Research suggests that millennials were prone to buying more things and spending more on products they saw on social media of other users, because of an effect called FOMO, Fear Of Missing Out. The feeling that I will be an outcast if i don't do the same thing is what defines FOMO. Even then, I was willing to forego everything that could potentially make social media toxic. I believed that as an individual I have to decide for myself what makes sense and what doesn't.
The story began when Youtube channels and twitter handles became our go to source for information. This is actually one of the things I absolutely love about social media - information is available so easily all the time, in different forms which makes it amazing. Information is available in a somewhat entertaining way which keeps the viewer/reader hooked.
So, when I say that it is also very worrying at the same time, it's because as humans we want to believe in pictures and posts we see on social media. We want to believe that it is so easy to make money or start a side hustle. It is made to sound like everyone is doing it, everyone is making money in the stock market, everyone is predicting price movements correctly.
Everyone was using these unsolicited tips to try and make money, and losing their hard earned capital. “People always talk about their winners''. Sharing screenshots of profitable trades began to pour in, 14 year olds making lakhs in one day. But no one was losing money (how is that even possible right?). On days when the market went down by 3%-4% , I would see people powst screenshots of mammoth profits. “I easily make 20% every month for my clients” was a response I got from someone at a networking event. Now that may be true (that they are making 20%), but “easily” and “monthly” is where they lost me.
“How to pick stocks in 10 minutes”, if that doesn't interest you, then maybe “How to pick stocks in 1 Minute” will. Yes, these are all legitimate tips and tricks available on social media ( try putting these phrases on youtube and see what it leads you to). If stock picking were so easy, why don't we have more millionaires? Surely if by spending 10 mins I could find the perfect stocks, I should be pretty well off. Every person viewing these videos thinks it is free information, but it’s not, the person creating these videos gets paid for every view, so there is every chance that they have to keep it interesting to stay relevant, because no one likes to talk about Asset Allocation, and financial planning and all things boring. All these so called ‘influencers’ will sell you anything and everything to stay relevant, doesn't make them a bad person, but maybe they aren't the best source of investing/finance information. Don't get me wrong, there are some youtube channels and twitter handles, and Instagram pages that give out genuine information (not advice), which is helpful in more ways than one. But sharing information is one thing, and recommending investment ideas and tips is another.
Unless we have certain regulations come into play regarding sharing of such information and tips. It is important for you as an investor to know that if the said information was so easy to find and so massively profitable, why would anyone share it for free? Investing is easy when you are disciplined and confident about your own due diligence or seeking help from an advisor. Your investing philosophy is not supposed to come from a youtube video or a tweet, treat them as they are, a source of information, but not one to rely on completely.
Nice start bhai....
ReplyDeleteEnjoyed your take on the matter. Very nicely written.
ReplyDeleteIt is a well-written blog which focuses on the unrealistic expectations created by social media. A very refreshing read!
ReplyDeleteWorthwhile read. Looking forward to reading more such engaging content!
ReplyDeleteVery well versed and skilfully written clearly showing the mirage created by social media.
ReplyDeleteLoved reading article.Very well written and to the point, explains the dark side of social media.
ReplyDeleteInteresting take on what’s currently happening. Look forward on seeing more posts on this topic.
ReplyDeleteVery well written. Looking forward to the upcoming posts.
ReplyDeleteNice article from a young mind... interesting to read!!!!!
ReplyDeleteVery very informative …and nicely written
ReplyDeleteAmazing Aakarsh Bhaia💯👍
ReplyDeleteAmazing write up👏👏
ReplyDeleteAwesome blog !! Loved it ✨
ReplyDeleteA much needed article I'd say, in times like these, when the importance and influence of social media has kept on growing. A good read!
ReplyDeleteLoved reading your article. Looking forward to more
ReplyDelete