(MENAFN- Mid-East Info) By Damian Hitchen, Regional Head of APAC and MENA at Saxo Bank

It's never been easier, or trendier, for young people to enter the stock market. In Denmark, one in four adults over the age of 22 is now investing, demonstrating a shift towards younger people becoming more financially aware. The same trend is visible in the Middle East, where rising disposable income, proliferation of digital platforms, and easier access to trading are inviting younger investors into the markets.

“But behind this optimism lies a troubling reality: the rise of social media-fueled investment fantasies that promise quick money, minimal effort, and a lifestyle of luxury.”

On TikTok, Instagram, or YouTube, a new wave of“finfluencers” offers everything from stock tips to full-blown investment courses, often wrapped in glossy success stories and promises of two-hour workdays and six-figure returns. The message is clear: quit your job, follow their advice, and watch the money roll in.

But this narrative is not only misleading. It's dangerous. This type of advice goes against the knowledge we have built in the financial industry over the last 40-50 years.

The idea of making fast money and placing big bets on individual stocks contradicts decades of research around sound investment strategies. The real risk is that young people, influenced by these social media success stories, begin to chase short-term gains and speculative trades rather than building long-term, diversified and fundamentally robust portfolios. Chasing quick wins will lead many young investors into cycles of excitement and panic likely to result in emotional and irrational trading behavior.

The emotional factor makes the problem worse. A few red days, where their trading positions are losing money, can trigger fear, leading to rash decisions and missed opportunities. The truth is, wealth in the stock market is built over time, not overnight. The way in which the younger generation consumes media and information is fundamentally different from previous generations. They get information from shorter form media like videos and reels instead of articles and books. This bias towards shorter video content necessarily means the information received is often made to be catchy and simplified, missing depth. Some subjects like investing are inherently more complex and there is a danger in over-simplifying to the point of sensationalisation.

Not all finfluencers are malicious or cause harm, many genuinely aim to educate and empower their followers. But it only takes one bad apple to spoil a barrel, and some exploit the impatience and ambition of their followers for personal gain and profit. There are finfluencers online selling dreams of affording a Ferrari within a month of signing up for their courses. In this region, where entrepreneurship and ambition are celebrated, the temptation to believe these stories can be even stronger.

Regulators are beginning to respond. In some countries like Australia, finfluencers need to have the correct qualifications and there has been a recent crackdown on those that flout these guidelines. Similarly in Singapore, financial influencers are now required to be licensed. Unlike licensed advisors, finfluencers aren't bound by regulations or fiduciary duties. They can harbour hidden agendas and lack the necessary qualifications, while still reaching thousands of impressionable followers.

The solution isn't to discourage young people from investing; it's to equip them with the tools to do it wisely. That means promoting financial education, encouraging skepticism, and reminding them that if something sounds too good to be true, it is.

The stock market is not a slot machine. It's a long game, and the most powerful asset any investor, especially a young one, has is time.

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