While the COVID-19 lockdown has been hard on all of us, it has also excited young investors who have suddenly found love for stock trading. This is also called the Robinhood phenomenon named after the US-based stock trading app called Robinhood, which actually denotes the “democratizing finance for all” in the words of its official twitter account as the app aims to give access to stock markets to those who do not have it.
But in an unfortunate incident in June 2020, a 20-year-old customer of the app took his life because he has thought he had made losses worth $730,000. What’s worse is that he had misunderstood what the app was telling him.
This has suddenly highlighted the dangers of trading in stocks by those who do not understand stock markets and trading. Do these millennials know what they are getting into?
Shyam Sekhar, ideator and founder of ithought Financial Consulting LLP, a Chennai-based wealth management firm talks to Moneycontrol’s Kayezad Adajania about how young and first-time investors should navigate direct stock market investments.
Sekhar says that he is not against direct equity investments, but investors must be careful and spend time in seeking knowledge, instead of trying to make a quick buck.
Tune in to the Simply Save podcast for more.