DIGITALLY DISABLED INVESTORS

Digitalization has changed the user journey of investment in financial instruments like stocks, FDs. You can control everything with just a few clicks. Transactions have become much faster and convenient.

Does the digital era only bring operation efficiency? or Are investors generating better returns?

Alongside operational efficiency, the Digital era also brought a complimentary devil in the form - Information Overflow. There's an enormous amount of information flowing and an overwhelming urge to analyze it. Due to this, we fall into the trap - Garbage In, Garbage Out. We have to be extremely cautious about what we read. Humans have a tendency to search patterns not because it exists but because of its predictive value. So if you read low-value information and analyze it. You will get a low-quality result and profit.

Furthermore, there is a constant sense of urgency to act on any piece of advice that an investor gets. But the digital world is filled with over-enthusiastic ideas and pseudo expert strategies, which are as evanescent as a lightning flash. One day everyone will be talking about X. Within a week, POOF, X is gone. So are the profits.

Thus, investors are digitally disabled.