“interested in trading and investing since the Coronavirus pandemic began”. This is comparison 42 per cent of to Millennials (25 to 34-year-olds), and 31 per cent of consumers across the representative sample who answered in favour of the question.
Meanwhile, of the 1005 Australians who participated in the study, 38 per cent of men had a higher interest in trading and investing, while for women, this figure was at 24 per cent.
“What this research clearly demonstrates is that because of COVID-19 more people, especially young adults, are taking their financial future into their own hands with trading and investing,” Jeremy Kinstlinger, director and co-founder of Global Prime, said. “The enthusiasm is excellent to see.”
However, as aspirational wealth creation becomes increasingly popular among members of Generation Z, Kinstlinger warned first-time investors against taking investment advice from social media influencers and peers. “I believe we have seen a perfect storm for younger Australians with the accessibility of investing and trading apps, more money for many during the pandemic due to not commuting or eating out and the rise of influencers sharing their wins,” he noted.
Accordingly, the founder of the 10-year-old firm advised young investors to remember a few golden rules in investing and trading, including being realistic on the returns on their investments planning out trades in advance and relying on the advice of an experienced trader. He also warned them about the practice called ‘B-booking’, where CFD (contracts for difference) brokers trade against their own customers with the aim of making profit off their losses. According to Kinstlinger, young traders may avoid falling prey to these unscrupulous practices by asking for trading receipts.
