I am a stock trader who hopes to follow my passion and become a full-time trader.
Therefore, to answer this question, I would say that the fear of loss keeps people away from stock trading. Only when we are confident about something, we feel at ease. For example, with regular life insurance plans, if an accident occurs, the insurance company guarantees that the beneficiary will receive the specified amount. So we feel at ease about it.
But in stocks trade, the situation is quite different. Here, you can make money or lose money, all of this happens right in front of you. If you are a novice, you simply do not know why this situation happens. Even service providers will mention warnings at the end of their investment advice, as their recommendations are affected by market risks. Because no one can guarantee people stay away from it.
The fear of loss is always greater than the joy of making money or profit.
Those who understand that risks and rewards are directly and highly correlated are willing to engage in stocks trading and take risks. In short, this is human behavior, unrelated to financial or market understanding.
Because money is an important part of life, people want to use it safely.
KyleyW : insurance agent alert! faster siam