With mass access to digital platforms, millions of people are invested for the first time. The behavioral economy reveals how the fear of losing conditions its decisions and how the “social investigation” can shorten the learning curve.
In the world of investmentsone of the most studied concepts to understand the behavior of those who operate in the retail market is the aversion to loss. The behavioral economy It shows that people feel the pain of a loss with much more intensity than the joy of an equivalent gain. In other words, Losing $ 1,000 hurts more than what is happy to win them.
This psychological bias creates a challenging environment for those who just begin to invest. The fear of losing You can paralyze or push them to make hasty decisions, many times with worse results.
However, the growing financial inclusion and the Massification of digital platforms They have promoted millions of people to take their first steps in the stock market and other markets.
Loss aversion: the invisible brake
In the US, the progress was historic: between 2019 and 2022, the proportion of people with investments in shares went from 15% to 21%. The phenomenon is explained by the democratized access to marketsbut also reveals a Training deficit: an investor under 35 years of age dedicates, on average, just six minutes to evaluate a purchase and usually based on Social Network Informationwith very variable quality.
The consequences are clear: 73% of retail investors operate in intradica in the US loses money. The combination of impulsiveness, scarce training and loss aversion He usually play against them.
“Social Investing”: the new school to invest
In this context, a global tendency gains ground: the “Social Investing”. This integral model social functions In investment platforms, allowing users of all levels to connect, share strategies and learn from each other.
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Beginners: They can follow and replicate investors with experience, reducing expensive errors.
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Intermediates: They validate hypotheses and discover new opportunities.
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Experienced: They share knowledge and, in many cases, receive compensation for capital that others invest following their recommendations.
In Argentinawhere to leave the immobilized money can mean lose more than 200% purchasing power In a year as in 2023, investing is not optional: it is a tool for Financial survival.
He “Social Investing” Democratizes access to effective strategies and helps reduce the gap between those who know how to protect their heritage and those who do not. It can even have concrete objectiveslike a father who saves with his son for a trip of graduates, following a proven and transparent strategy.
More than a passing fad, the “Social Investing” it’s a Structural change in the way people access financial knowledge.
When a doctor, a teacher or a merchant without training in finance can invest by the hand of professionals with decades of experiencethere is a true revolution: one that not only fights the impulsiveness and the loss aversionbut also open the door for more people to participate with intelligence and trust In the market.
Front CEO
Source: Ambito
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