By IndiaHub 
Too much hype, not enough truth
In recent years, we’ve seen many examples of social media pushing people to make risky investments. A few posts or videos can go viral, causing thousands of people to buy a stock just because it’s popular, not necessarily safe. Many influencers or “finance gurus” give advice without having the right knowledge or licences. Some do it just to get views or make money from promotions.This kind of content can mislead people. It may leave out important details or risks. As a result, many new investors end up making decisions based on excitement or fear, instead of careful thinking.
Echo chambers and FOMOSocial media platforms often show you more of what you already like or believe. If you follow high-risk investing content, you’ll keep seeing more of it. This creates an echo chamber where people only hear ideas they already agree with and miss out on other important viewpoints.
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Also, when people see others showing off big profits, it creates FOMO or the fear of missing out. They jump into investments just because others are doing it, without checking if it’s right for them.
Investing based on emotion
Many social media posts are designed to grab attention, not teach. They often show big wins or dramatic losses. This makes investing feel like a game, where people act based on emotion—like fear or greed—instead of facts. This kind of behavior can lead to frequent buying and selling, which hurts more than it helps.
Some influencers also promote certain products or stocks because they get paid to do so. But they may not always say that clearly. This can trick people into trusting advice that isn’t really honest.
Some good news
Not everything on social media is bad for investors. Some trusted voices are now sharing helpful and accurate information online. For example, SEBI-registered advisors, financial educators, and mutual fund companies are posting simple videos, articles, and tips to help people learn.
If you follow the right accounts and ask smart questions, like “Is this person qualified?” or “What’s the risk?”, social media can help you learn more and make better choices.
Final thoughts
Social media has changed how people learn about investing. It can help, but also harm. The key is to be careful, stay curious, and not believe everything you see online.
In the end, investing should be about your goals, not what’s trending. Take your time, learn from trusted sources, and don’t let hype influence your decisions.
*Authored by: Piyush jain, Founder,Paras Finvest.
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