I subscribed to some research houses' Market Newsletter, daily report etc with the purpose of getting some ideas what or where to look for good companies.
In a recent report by a local brokerage house which cover regional stocks, I saw an ETF in its Daily Trading Ideas and just out of curiosity, I did some reading about this ETF. Well, its an inverse ETF - which means you make money if the market drop, not the ETF which hold a basket of securities where the ETF will follow the collective price movement of the underlying securities.
Obviously in all the research houses report there is fine print on disclaimer and one should be responsible for his own investment decision. Knowing there are many new investors coming on board during the Covid 19 pandemic, I am sure many are totally new to stock investment. I would think many are totally lost when come to inverse ETF or leveraged ETF. So, they may not be fully aware of the risks they are exposed to if they start trading these ETFs.
As stock investing and trading are made so easily accessible to all via Apps, one can easily get into some securities which he doesn't even understand. Searching for ideas is so easy and convenient as they are readily available everywhere with the help of internet, but at the same time, we are also exposed to higher risks of getting into something we do not understand.
Good ideas may turn out to be big trouble if we do not equip ourselves with good knowledge on the securities we are investing.
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