People who are very much after money do not gel well with discount brokers. There are limitations of every service, and these service providers are also not an exception to this rule. The discount brokers tend to provide them the online platform so that they can carry out their trade very easily with the latest technology but such people want to get money in no time without much effort.
The chief disadvantages of the discount brokers are as follows:
It is very simple to open an account having meager or no money.
You can simply and rapidly carry out trades.
It is a self-service system with less or no supervision.
With the use of discount brokers, trading has become very effortless and immediate.
This kind of brokerage is very beneficial to the traders who are professional. All these benefits turn into disadvantages with respect to undisciplined traders, easy going who take risks.
Some people are pulled towards Discount Brokers and to Penny stocks
The trader who is of the kind of risk taker is very much thrilled concerning the discount brokers in India the excitement of trading with rapid hefty benefits having minimum restrictions. The investors or traders can get their account opened within no time in the firms of well-known discount brokers without money or too little down. The traders begin to trade their stocks without any knowledge or advice from the discount brokers. Within no seconds such people can execute orders. So simple to achieve it. They get immediate excitement with the intention of getting big hit with penny stocks. It is easy to envisage the disadvantages the discount brokerage has at work in favor of people who want easy money
All such traders have an affinity for penny stocks
The reason working behind it can be as follows:
Penny stocks are said to carry potential rapid hefty benefits, on the condition you are able to choose the profitable stock. Such traders are under the impression that they will finally make it and bag huge profits. Almost all people know it that it is not easy as it appears apparently. You can get all the diamonds but all in vain if you are not aware how to grab them.
Such person in haste is said to be always a loser in the end due to the reason that he is not a disciplined trader and behaves as a follower of each con that haunts the market. As a rule, the undisciplined traders are immature, impatient, and insatiable. They are not bothered to learn the manner in which to deal with penny stock and benefit from it.
Such type of investors invest like to put something on a stake
By doing penny stock trading, the person can have a lot of fun that he becomes by and by addicted to it, although many traders end in the losses eventually. There come a few winners the way that prompts him to carry on and give him hope to get luck.