According to Investopedia, financial porn is a slang used to describe sensationalist reports of financial news and products, that may cause irrational buying which may be detrimental to investors’ financial health.
You may be aware of the government's recent crackdown on pornography websites, and the debate that it created nationwide. Akin to the addiction to porn, there's a similar phenomena that you may not have heard of -- it's the addiction to 'Financial Porn'; it is quite prevalent across the globe.
It sounds amusing but it is true. A lot of people, despite being unaware of the phenomena, are still victims of it.
In this article, we will explore 'Financial Porn' in detail and understand it better
What is Financial Porn?
Financial Porn may be a hot investment tip or money-earning secrets that hit the psyche of the investor and lead him to indulge in unsafe behaviour for short-term gains. Many investors have succumbed to hot tips aka financial porn, and have ended up spoiling their long-term happiness for the sake of short-term pleasure.
According to Investopedia, financial porn is a slang used to describe sensationalist reports of financial news and products, that may cause irrational buying which may be detrimental to investors’ financial health.
In short, ‘Financial Porn’ is any sort of financial advice which stimulates investors to get lured by ponzi schemes or invest in unhealthy financial products & schemes.
Why does Financial Porn exist?
There is no dearth of people who look for quick fixes for everything in life, even if it may mean getting rich. For this, people take blind risks to achieve instant financial success.
Knowing this, all that scamsters have to do, is to tap into this psychological aspect of an investor to lay the trap and get the catch.
There are many so-called financial advisor-cum-fraudulent agents of financial products who are aware of the investors’ psychology, who then selling unwanted financial products driven by marketing gimmicks.
How does Financial Porn affect investors?
-- It creates impractical hopes in the minds of the investor.
-- It indulges investors in an unhealthy investment plan which ruins their long-term financial stability and happiness.
-- In many cases it had resulted in huge financial scams.
How deep-rooted is the problem is?
People, in general, tend to pick information that confirms their beliefs rather factual information, which leads to a real problem and increases the probability of becoming a victim to financial porn.
Consider this small stock market scenario:
Investors may be referring to several reports before making an investment in the stock markets. However, many are unable to tell the difference between an analysis based on company fundamentals or it is merely a technical analysis. Which means, investors may end up making a mistake. It is important to do a thorough research before buying stocks to avoid making such mistakes.
Signs you may be addicted to “Financial Porn”
-- You blindly believe in double-your-money schemes.
-- You tend to buy stocks on the basis of SMS or WhatsApp forwards.
-- You believe in a malicious email claiming that you've won a lottery.
-- You indulge in fast schemes that offer extraordinary returns.
-- You believe in realistic offers of money-making ideas from your friends and relatives
How to avoid the trap of financial porn?
There's no quick fix for getting rich overnight, or no short cut to the hardwork that needs to be done to double your money.
It is important to remember this to save yourself from being victims of financial porn. There's no other medicine or treatment for it.
Stop being attracted towards the so-called adjectives. Fastest, Super, Best, Secret, Top, and Quick returns, which may lead to taking unhealthy financial decisions.
It is important to stay away from these marketing gimmicks.
The best advice is to be open-minded and not trust any financial advice easily; scrutinize every tip and ask questions before investing.
In short, avoid anything which promises short-term pleasure because it may have the tendency to ruin long-term happiness.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Representational image")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}