Many of the hundreds of thousands of new investors who participated in the stock market frenzy during the pandemic could have suffered significant losses from their trading activities.
Analysis of transaction-level data from the Australian Stock Exchange shows that some investors seem to have relied on the stock market instead of gambling, often with bad results.
The Australian Securities and Investment Commission (ASIC) states that over 700,000 new stock trading accounts were opened last year.
A new study by Angel Zhong, a senior lecturer in finance at RMIT University, reveals the extent of transaction losses suffered by individual investors.
Dr. Chung is typical of small investors who trade regularly for every $ 1000 invested in the first wave of pandemics at the beginning of last year when investor trading activity suddenly surged 25%. The loss was calculated to be $ 1.90.
Much of that activity was for investors to buy stock in so-called “safe shelters.” Banks that are expected to generate the most profits, such as major banks, due to the plunge in the Australian stock market.
However, with the availability of the story of an effective vaccine for COVID-19 and the steady recovery of the stock market, investors’ desire for risk has grown rapidly over the years.
Many have increased trading in information technology, healthcare and retail stocks.
Trading activity surged 92% in the second half of the year or in 2020, but every time people engaged in haste stock trading invested $ 1,000 daily, even though the entire market had recovered most of its losses by the end of the year. I lost $ 6.50. Is called.
Individual investors lose in stock market “gambling” caused by a pandemic
Source link Individual investors lose in stock market “gambling” caused by a pandemic