The costs of doing your own trades
There is risk from opportunity cost and danger of behaving more like a gambler
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A stock broker monitoring the latest share prices during a trading session at the Pakistan Stock Exchange. The rise of low-cost trading applications has made it easier and faster for investors to execute their own trades. However, the writers say the simplification and gamification of such trading platforms may not be beneficial for investors.
PHOTO:EPA-EFE
Ben Charoenwong and Tan Zong Ting
The global pandemic was the spark that accelerated two trends in financial market participation: technology-enabled, lower-cost trading and the rising cost of attention.
Having more people take part in the economic and financial market growth is a democratic way for the entire population to grow their wealth. But, on the other hand, uninformed amateur stock trading may also result in exposing one's life savings to risks.