PETALING JAYA: The stock market is like a pot of gold. Rich pickings are there for all. And the lure is especially irresistible when times are hard.
At the same time, the fall can be fatal as many have found out too late.
In the first nine months of this year, Bursa Malaysia Bhd chalked up trading revenue of RM349.2 million, double the RM173.6 million recorded in the same period last year.
But even as Bursa Malaysia was raking in the extra millions, the number of investors who has lost everything rose by 30% compared with the same period last year.
Unfortunately, the vast majority of them are small-time traders who are believed to have borrowed from loan sharks to try their luck on the trading floor.
While there is no data yet to say who these losers are, it is a fact that many have lost their jobs or seen their incomes slashed thanks to the movement control order imposed in March to curb the spread of Covid-19.
Brian Leong, chief operating officer at Rehab Gambling Centre, said the majority of these casualties are those aged 41 to 50, the same people who would have reached the pinnacle of their careers.
The problem, Leong told theSun, is that most of these traders jump into the stock market with no experience tucked under their belt nor proper advice from the experts.
This is especially so for those aged 21 to 30, young and daring but lacking knowledge and wisdom.
Leong attributes the rise in the number of novice traders to financial desperation that can be attributed to the Covid-19 pandemic as well as the flexibility of working from home.
Away from the watchful eye of their superiors, the temptation to log in and watch the market movement daily is difficult to resist.
Many start by dipping in the toe, only to be pulled in further by initial gains.
As financial experts point out, one bad call is all it takes to not just wipe out previous gains but put the trader deep into debt.
This is especially so for traders who do not have the financial resources to cushion any setback.
One such trader is a 28-year-old who asked to remain anonymous.
He recently lost RM10,000 within hours, an episode he deeply regrets.
He was lured into the game by friends who had been making “hundreds of thousands”.
“I was glued to my phone or tablet, looking at charts. I neglected my work, missed lunch or dinner and stayed up all night. It was addictive,” he said.
Another trader, a full-time entrepreneur by day, was motivated by an initial gain of RM10,000.
“I put all my savings into it and now it has jeopardised my wealth, affected my relationships and put a strain on my mental health,” he admitted.
Financial planner Felix Neoh said the number of “investment gurus” has also mushroomed over the past few months on platforms such as Facebook and YouTube.
“There are many advertisements on social media promoting classes and giving tips on how to succeed in the stock market. Some of these ‘gurus’ may not be certified,” he told theSun.
“Learn to trade, not wait to be spoon-fed. Be disciplined. Allocate a certain amount of cash you can spare and don’t compromise on that,” he advised.
According to health-tourism.com, dabbling in the stock market is like gambling and one quickly gets addicted to the thrills.
And like all addictions, it is hard to break.
