Are you buying stress out of investments in high frequency stocks?


Fluctuations in stocks

Trading in stocks has been a great source of income for those who have been making profits. There are investors who pick up a mixed variety of shares; this means they make their stock investment diversified so that the gains and losses are averaged out. There are some who invest in stable caps only so that their money is safe and secured.

However, there are some who keep investing in stocks irrespective of their fluctuations. In an attempt to make fast money, these investors have lost a lot of ground.

Why do high frequency stocks bring stress to the investors?

  • The erratic behavior of stock market have left the investors with not much returns, rather some of them have earned a lot of anxiety and stress and have also lost the principal amount invested.
  • Global economy crisis affects the stock market of every country since the trades are interrelated in some way or the other.
  • The crisis of the stock market does not allow the investors to hold on to their investments; rather they enter and want to quit the market as soon as possible. In the process loses stability hence exposing the mid-caps and small caps to a great insecurity.
  • A report says that almost 50 to 70% of the business volume in stock market runs on instability.
  • Only 15% of the investors show trust in the market, as revealed in a study.

Looking at the scenario, experts are concerned about the stability and trust of the investors getting reposed in the market.

Andy Brooks, Vice President and head of US equity trading says, “It might involve pennies, but when combined day in and day out it death by a thousand cuts”. He also expresses that events like Facebook stock failure and other crushes have forced the market lose trust amongst the investors.

Andy Brooks also terms this trend as “Casino environment” and it’s only because it shows no stability.

Experts also believe that the concern should be on the fact if the pendulum has swung too far.

In this state of affairs, the investors can refrain themselves from making any hasty decision and putting their money as wisely as possible.