Social media has changed the way people learn about money. Today, anyone with a camera and confidence can talk about the stock market, trading, or “Early Financial Freedom”.
Some of this content is genuinely educational.
But a ot of it is dangerously misleading.
In recent years, thousands of investors, especially young professionals and even senior citizens have fallen for the promises of unregulated “market gurus” who sell expensive trading courses, mentorship programs, and monthly income from trading dreams.
This blog is not about any individual.
It’s about the system, the process/trend and common traps investors must be aware of.
Why Finfluencers Are So Popular Today?
Finance has become fashionable.
People enjoy quick videos that simplify markets, explain opportunities, and offer hope of building wealth.
But popularity doesn’t equal expertise.
Not all finfluencers:
- Are Certified Financial Planners or NISM Certified
- Have no regulatory accountability
- Earn money by selling courses, subscriptions, and trading rooms, not by investing themselves successfully
Yet their confidence makes them sound like experts.
Why Do People Fall for These Promises?
Two main reasons:
A. Quick Rich Schemes:
The idea of doubling your money quickly, earning daily income from stock market trading or achieving financial freedom within 5 years sounds extremely attractive, especially to:
- Young earners struggling with financial management.
- Investors who want to grow fast.
- Working professionals who want passive income.
B. Personality > Credibility
Social media is all about showoff culture. On social media, people trust:
- Fancy lifestyles
- Screenshots of profits
- High-quality videos
- Emotional storytelling
Even if the person has no required qualification or registration.
The Line Between “Financial Education” and “Advice”
Many influencers claim they are “Educators” but their actions tell a different story:
What they often do is:
- Give buy/sell recommendations
- Share entry and exit levels of trades
- Conduct live trading rooms
- Run WhatsApp/Telegram groups with trade calls
- Charge thousands for “mentorship” programs
This is not education; it is unregulated advisory.
The Illusion of High Returns
This is where things get risky.
The biggest reason people fall for financial influencers or as they say “finfluencers” is the way they present “proof” of success.
Most investors don’t understand how financial markets actually work, so when they see:-
- A profit screenshot showing for example, Rs. 2 lakh profit in a day.
- A reel claiming “10% monthly returns guaranteed”
- Or a student testimonial saying “my Rs 50,000 became Rs 2 lakh in 3 months or 4 months.
Influencers do this intentionally,
They show the profitable trade and hide the worst trade loss-making trade, and present the returns that look clean, consistent and effortless.
As it is said, “If the return sounds too good to be true, it almost always is.”
In real markets:
- Even the best fund managers take a lot of effort to beat the index
- No one makes a profit every day or every week.
- There is no strategy with “guaranteed returns”.
But there are a few influencers who create an illusion of certainty.
Senior Citizens: The Silent Victims
This trend has not only impacted youth but senior citizens as well:
- Look for safe monthly income
- Trust confident speakers
- Believe that trading can supplement pensions
- Don’t fully understand F&O risks.
Many end up investing their retirement corpus into high-risk strategies and face losses that cannot be recovered at their age.
The Misleading Risk-Reward Story
The influencers often throw around complex terms to sound credible, the one which is the most commonly used is Risk-Reward ratio.
They’ll say things like:
- This strategy has a 1:5 risk-reward ratio
- Minimal risk, maximum reward
- Guaranteed profitable trade
To a beginner, this sounds amazing
But the truth:
A high risk-reward ratio does not mean that the trade is safe.
They only highlight the reward side and completely ignore:
- How often does the trade fail?
- How big can the losses get?
- How volatile is the strategy?
- How much capital is needed to survive bad phases?
Let’s take an example to understand (Risk-Reward Ratio)
Suppose the influencer says:
“This strategy has a 1:3 risk-reward ratio”
It means:
- You might lose ₹1,000 if the trade goes wrong or
- You might make ₹3,000 if it goes right
Sounds great, right?
But what they won’t tell you is:
- The trade might fail 8 times out of 10
- A loss after loss will drain your capital
- Your ₹1,000 loss may become ₹5,000 or ₹10,000 because of slippage
- One bad options trade can wipe out a month’s profits
So even if the reward looks attractive, the probability of loss is far higher.
A good risk–reward ratio is meaningless if:
- The strategy is unstable
- The trade frequency is of very high risk, or
- The trainer has no real track record.
No one can guarantee returns in the stock market.
Not brokers, not influencers, not training academies.
Why Financial Planning Is Important?
The common thread in all these situations is not trading itself — it is the absence of financial planning.
Most investors fall into these traps because they are chasing returns without having a clear plan for their money or their life goals.
This is where financial planning plays a critical role.
Chasing high returns without managing risk can destroy long-term wealth.
A sound financial plan ensures:
- proper asset allocation
- emergency funds
- adequate insurance
- investments aligned to your goals.
This protects investors from decisions that may look attractive in the short term but can permanently damage long-term goals.
How Financial Life Planning Helps You Create Wealth?
Wealth creation is not just about investing and earning returns; it is about planning your life.
Financial Life Planning helps define your goals and allocate money in a way that supports those goals across different stages of life.
Whether it is education, retirement, health, or lifestyle needs, a structured plan ensures that your investments have a clear purpose and realistic timelines.
When money decisions are aligned with life goals, wealth is built through discipline, consistency, and risk management — not through shortcuts or speculative bets influenced by social media.
A Certified Financial Planner can help you to design a financial plan according to your goals and needs.
The Smart Alternative: Slow, Steady and Goal-Based
Real wealth is built through:
- Long-term investing
- Diversification
- Asset Allocation
- Risk Management
- Tax planning
- Retirement Planning
This may not be exciting, but it is effective and proven.
No shortcuts, No miracles, Just disciplined investing.
Conclusion
Finfluencers have made finance look easy, exciting, and risk-free, but real wealth creation is none of these.
There are no shortcuts, no guaranteed returns, and no secret strategies to create wealth.
Sustainable wealth is built through proper financial planning, where money is aligned with goals, risks are managed, and decisions are made with discipline, not influenced by social media hype.
If someone claims they have a secret strategy or a guaranteed way to make money every day, remember:
They are selling a dream, not a truth.
And often, you end up paying for it.
Protect your money.
Protect your future.
Trust professionals, not promises.
If you are looking to create a structured financial plan for long-term wealth creation, Niraj Nanal can help you with a goal-based, disciplined approach.