Stocks and shares market are the investment market, which is attracted private investment. People invest in the shares market attempt to find out the way to achieve success. The best investors can distinguish right choices from wrong investment decisions in the stock's market. However, private investor investing in shares market is hard to gain profit. Shares market trend has fluctuated in the past several years in global. Yan (2011), Maheu and McCurdy (2000) all of them said that there are large numbers of private investors, who has extra money, prefer investing money to stocks and shares market to earn money. These investors cannot invest on the exact times because private investor choices wrong time to invest. Stocks prices are trending fluctuation. Private investors not only cannot earn money but also will lose the capital. It is not a good idea for most individual investors to invest capitals in stocks and shares market. This essay will argue the reason why investors should avoid stocks and shares market. The reason why suggests private investors should not invest money in stocks and shares market is there are large numbers data need to analyze, private investors cannot invest in appropriate time or company, and herd behaviour affects private investors choices different stereotypes of stocks even the market is full of bubbles.
Firstly, reason why private investors should avoid investing capital in stocks and shares market is most private investors to invest in the worthiest company is uneasy (Madura 2006). It has large numbers of membership companies in shares market. There are numerous data prerequisite to analyse before invest in the shares market. For example, private investors cannot data analysis as quickly as investment organisation or companies. Shares Fund, which is concentrated on data analysis (Rajgopal & Shevlin 2002), can analysed data as soon as they can, which is government policy and market incidents, effects futures stocks prices trend , data, the shares are investable (DeFusco & CFA Institute. 2007). Private investors try to figure out the company problems as investment organisation. Money is not the only element in the share's market, multiple intelligence perspective is also important (Montier 2009).
For instance, few private investors less or without data analysis although can earn money from stocks and shares markets. Nevertheless,, there are too many coincident that private investors in the shares market without data analysis can get profit. It is just same as purchase lottery ticket (Brown 2005). Private investors can earn money without data analysis cannot always happen. According to Northcott (2009, p.105), Murphy's law affect the stock market, private investors without data analysis can get money, but it cannot be frequently happened. For these reasons, private investors cannot merely wait for the shares increased every moment.
Therefore, stock and shares market acquire large numbers of data analysis is not easy for private investors. People who invest money in the shares market can get benefit from the company data analysis. Regularly, private investors can deal with large numbers of data by themselves, though they cannot get to numerous companies data from news(Northcott 2009; Kelly 2009). If the people who invest money to stocks and shares market can only get information from a company annually report and company news from media, they cannot really participate in the company controlling, so that private investors cannot get the first- hand information as soon as funds controller in the company. (Rajgopal & Shevlin 2002). In short, it will lead the information and private investor choices worthless company stocks. Private investors get less data to enquiry companies' function. The data analysis is necessary for investors. It is hard for private shareholders.
Secondly, it is an invaluable investment to private investors because private investors continually cannot invest right times and companies, stocks and shares market are difficult to gain profit for private investors. Private investors continuously invest money at the worthless companies. For example, there is numerous private investor devoted in low return and high valuations companies, it was leading that in fifteen to twenty years, these private investors cannot obtain returns from share market(Mauldin 2004). The people choices wrong target market leads a separate result. The fact is fast growth companies can get double return than low returns companies(Briston 1970). Private investors also invest on the famous company which they heard before, private investors out of the shares market because the company which performance increased but trend decreased. However, it also is a worthy company to invest.
Private investor, who invests in the shares market, participates in the bear times not only cannot get the way to be successful but also will lose money that they invest. People who invest money in bear times, such as currently years in 2002 and 2008, which all companies stocks decreased 25 to 40 per cent. People who participate in shares at inappropriate time will lose considerable funds (Gitman, Joehnk & Billingsley 2010; Mauldin 2004) . Such as invest in the stock market during the 95 years of the bear market cycles, there are only 0.3 per cent rate of return can be achieved. (Mauldin 2004, p.245). It is clearly shown that people invest money in a bear market will lead to returns slowly increased or decreased. In point of fact that is the private investors saving money in banks can get higher returns in these years. However, the trend is also fluctuation, several people who gain large number of money because in investment in right times. The fact is not everyone in stocks and shares market can get the applicable times.Yan (2011), Kelly (2009), Jansen and Tsai (2010) all states that investors aim to find out the way to earn money, to solve the investment problems, only several investors can choice right shares from wrong. To sum up, private investors put money into stocks and shares market has to consider carefully before they invest in a company shares. Investors constantly cannot catch up the fluctuation and right companies to invest, it would rather invest on funds or just saving money in banks.
Thirdly, there are partly of excessively private investors without data analysis, investment shares market merely following the market. It can call "herd behaviours", which is a common behaviour in stocks and shares market from all of the world investors data analysis (Chiang & Zheng 2010). Private investors would rather choice believes gossips from newspaper or website than believe the data analysis(Kim, Yoon & Kim 2004). Individual investors following the institutional investors, the stock market is efficient, investors application by Bayes' rule, which represents private investors find the approach to investment will lead the share market into an embarrassed place(Kim, Yoon & Kim 2004). As a consequence, in such a setting herd behaviour is not able to evolve when prices reflect public information. There is no doubt that prices reflect fundamentals. Therefore, another dimension of uncertainty has to be introduced.(Schindler 2007) that is people have to consider which aspects are important. However, stock returns of companies in bear states respond more than firms in bull states. Capacity for external finance is more essential in a bear market, as it partially mitigates the larger impact of monetary policy in a bear market. Investors in stocks and shares market without herd behaviours are not only is the reason why private investors into the stocks and shares market but also are the factor they believed the stock market can get returns also in bear or deer market. It is also is the best choices for investors.
Lastly, the cause of not invests in the stock market for the private investor because stocks market is full of risks. Private investors can hardly undertake it privately. Private investors have under risk of decrease or bankrupt, furthermore they have to under risk by themselves investment choice. There is no doubt that private investors cannot share risk with anyone except themselves in stocks and shares market. The reason why the shares market trend not be progressively always is stocks price has to near the values. If it sharply increased currently, there is no doubt that it will be decreased in the future. Provide evidence that monetary policy does have a stronger effect on stock returns in a bear market. These authors use data that provides an indirect measure of a monetary surprise, such as the M2 growth rate, the change in the discount rate, and the change in the Federal Funds rate. A recent paper by Jansen and Tsai (2010, p.983) examines the possibility of the untreatable positive and negative. It is shown that people focus on stocks returns, less on the risk of stocks. It will be harmful for the investment environment and people can investment. According to Esqueda, Assefa and Mollick (2012), stock returns depend on expected future cash flows, financial integration is likely to have an impact on the stock market, yet the impact on stock sharply changed depends on the broadening of the investor basis more combined stocks and shares markets will lead the different stereotypes effects. However, there is some instinct about the reason why investors in stocks and shares market also cannot get too numerous incomes or under high risks by themselves.
To sum up, following above opinions for the private investors, stock market can get extreme return but continuously with large numbers of data analysis. Private investors cannot receive numerous companies data from news. Private investors also cannot handle too much data analyses and got information as quick as organizational investors. Furthermore, stocks and shares market trend always fluctuate, private investors cannot invest on time and invested in worthless companies. In addition, the "herd behaviour theory", mislead several private investors' choices from right to wrong. Moreover, private investors can be under risk themselves unbiased, these risks are including company bankrupt and policy reformed. For instance, the appropriate choice for private investors is avoiding investment in the stocks and shares market. There are enormous numbers of choices for private investors in share funds. It is easier to control and need undertake numerous risks. However, risk is always complemented with incomes. People invest in others to the market can get benefit than stocks and shares market. However, this article is lacked there are considerables people had already got money from stocks and shares market. It is not representing every individual investors can be as successfully as those people. If individual investors can teamwork or combined for a company which is focuses on stocks and shares market data analysis. Stocks and shares market will be the best choices for individual investors.
