Wednesday, February 1, 2012
Bangalore: Advice from your financial experts or an online free investment message in your social network – which one would like to go for? Well the answer is obviously ‘No’, as you pay your financial expert for advising you, which is more dependable.
But there’s two recent studies done on whether these online tips and services about your financial decisions are beneficial for you or they are risky to opt. Both the study reached to a single conclusion that these online financial informations as risky as well as hard to pick up. Investors and traders should be very careful about the source while receiving the tips.
Now a day there are many websites like tradeking.com, didyouinvest.com and firsttrade.com which sells investing ideas, share stock tips and provides buying selling strategies. There are increasing numbers of consumers searching for financial advice in online communities but there is very little fact known about how participation in such sites effects their decision making process of their financial wealth. Bad investment always takes place but going through these online tips completely leads you to a critical risk of economic thrashing.
In the study conducted by Rice University of Houston, University of British Columbia, and University of Zurich, which was called “Does Online Community Participation Foster Risky Financial Behavior?”, one result revealed that participation in an online community leads consumers to seek out support from other members that is they believe they will be helped by other community members. This perception guides them to make unwise, foolish and reckless financial decisions than non-participants which ultimately deceives them and leads them to a critical situation. They observed the financial decisions of eBay and prosper.com users and concluded that this online community participation for seeking financial decisions leads to a greater threat. It is seen that non-participants remained safe while the participants lent their own money to riskier borrowers to a greater extent.
Yaniv Altshuler, who has been keenly studying the social networking trading site, eToro.com for the past one year, says, “There is good information and there is junk information (in the internet). The key is figuring out how to predict what kinds of networks allow the junk information to be filtered out”. Altshuler is a post-doctoral associate at MIT’s Human Dynamics Group and he shows the flip side of the fact by saying that “risky online behavior isn’t necessarily bad for a trader’s bottom line.
没有评论:
发表评论