Too many unskilled investors is a danger sign. Whenever investment greenhorns have plunged in with both feet in the past, disaster has followed. In and out trading is epidemic. Low commissions have encouraged impatient investors to trade far too frequently. The once-hallowed investment advice to buy and hold for the long term is pass .
Day trading is a financial buzz word.
Such frantic trading becomes more like gambling than investing. Time-tested measurements of value are totally ignored. Ten times earnings was a benchmark for stock prices in past decades. Under ten it was considered to be a buy. Now stocks at 50 or a hundred times earnings are commonplace.