Financial porn is probably the only safe content to check while you work. Instead, financial porn can really be detrimental to investors’ reputation. The main culprit of this scheme is the media. Avoid financial porn traps by learning every bit of the term below.
Safe porn for work, but not really safe for investors
Though it sounds racy, Investopedia defines financial porn as a slang term to explain news and products overexposure by media. Financial porn is often harmful to investors, as it messes with their minds from being rational. Continuous false steps in investing can further put their portfolio and financial health at stake, leaving behind scarred reputation.
How financial porn lurks in the investment world
With the developing media, it only takes one click to come up with the recent trading news. The problem is: is the news legit? Media often exaggerate or even undermine the things they report. It is also uncommon for media, moreover company-owned media, to promote certain investment or trading outlook.
There are several ways Investopedia suggests to realize financial porn. Financial porn often advertises easy-to-use trading strategy products and guarantee small investments with small earning. Media coverage that deals with financial porn usually limits their content to the latest and greatest sector trends only. Watch out for investment magazines, too. Magazines that contain financial porn reserve their front pages claiming to know promising details for future investments.
Investopedia also mentions stock advises on television channels, financial websites, online ads, e-mail advertisements, and other similar media can sway investors’ mind in making an investment. This tendency to accept financial porn’s information blatantly is called confirmation bias. Confirmation bias only picks information that is in line with their own beliefs.
The safe porn for work, in the end, is not safe at all
The problem is bigger once financial porn reaches operators. Masking themselves as equity analysts, they promise high returns to coax investors through obscure penny stocks and small-cap counters purchase. A very sly strategy to say.
Make sure you make yourself aware of what financial porn is. Be careful not to fall into the trap. Always conduct thorough research upon investing. Happy investing!
Follow and join us on Youtube, Instagram, Facebook, and Twitter to be part of the trader community in Asia