THE Roman Forum, also known by its Latin name Forum Romanum, was the centre of the daily lives of its people for centuries. It is the site of triumphal processions and elections; the venue for public speeches, criminal trials, gladiatorial matches and commercial affairs. It is where the heart of Rome beats and is regarded in history as among the most celebrated meeting place in the world.

       In the age of technology, the word “forum” in itself has taken a different definition albeit in a similar function. When we talk about forums, in the context of the Internet, it becomes a place where people leave messages or discuss particular subjects.

       Such forums are a way of connecting people with similar interests from all over the world. Popular apps and websites that act like a modern-day forum includes the likes of Reddit and SeekingAlpha. On the local front, Lowyat.net is a popular forum for a diverse range of topics. In particular, it has a strong following in the property segment where substantial information is available for public consumption.

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       For the local stock market, KLSE Screener, i3investor.com and MalaysiaStock.biz are amongst those that command large traffic of retail investors seeking to satisfy their appetite for information.

       Recently, StockBit, an investment community-centric app founded in Indonesia which made its way to Malaysia has been capturing market share of local millennial retail investors. The table shows the influence and impact of these online forums in the daily lives of Internet users.

       The proliferation of social media has disrupted the way we communicate and exchange information with one another. Enhanced connectivity allows information to be transmitted within seconds unlike yesteryears where the mode of communication using horseback riding messengers or pigeons required days if not months. This has entirely reshaped the way retail investors approach the stock market and also redefined the role of remisiers and stock brokers alike.

       Think “Reddit or Meme stock” phenomenon that was unseen prior to 2020, causing a seismic shift to the investment world. It wasn’t too long ago, at the height of the GameStop, AMC mania that top hedge fund managers such as Steve Cohen’s star protégé, Gabriel Plotkin, who ran Melvin Capital, suffered losses to the tune of US$4.5bil (RM18.97bil).

       It was a result of retail investors banding together on online forums to cause a massive short squeeze. In my humble view, the ease of communication between retail investors through online forums and social media is a new force contributing towards the vibrancy of the stock market.

       In the past, if retail investors wanted to participate in the stock market, it was paramount to have a capable remisier to guide you. Many retail investors flocked to brokerage houses and spent their time loitering the trading floors to have a pulse at the ground or to seek out “information” to help with their investment decision.

       Silly as it may seem, but back then, there were no other public medium for discourse on the stock market unlike today.

       Hearsay, tips and rumours were shared over meals, meetings or even the wet markets. This led to operators and syndicates easily devising pump and dump schemes through elaborate dissemination of information to unsuspecting retail investors, using various channels and proxies. More often than not, when the “tips or news” reached the retail investors, it would be the last leg.

       Today, with the advancement of technology, the traditional means of disseminating information is no longer the same. To keep up with times, the operators and syndicates evolved to be tech savvy. They penetrate online forums disguising as bloggers and even “Gurus” to capture the attention of retail investors.

       Social media apps like Telegram, Facebook and Whatsapp have become their weapon of choice, while forums become their medium. Such circumstances have become one of the major pitfalls of online forums and social media in the space of investing.

       Recently, Serba Dinamik Holdings Bhd made the headlines again when the CEO, Datuk Mohd Abdul Karim Abdullah, took Lim Kai Yang, the owner and operator of KLSE Screener to court for alleged publication of false and defamatory comments posted by a user account impersonating the group’s CEO.

       A user account by the name of “Dato’ Mohd Karim”, had allegedly published false comments on its forum which led to “undesirable speculation” on their company’s stock. Their chairman, Datuk Mohamed Ilyas said an ad interim injunction was obtained against Lim and warned that Serba Dinamik would continue to monitor other platforms. Legal action would be taken if necessary.

       Before being an author and columnist, I was an unknown blogger who started writing in online forums, in particular i3investor. The online forums became an outlet for my views as well as a ground to learn and internalise information, which I would probably not get from the mainstream media. I am especially thankful for the existence of online forums as it acted as an avenue for aspiring retail investors in the stock market.

       Of course, I agree there is much room for improvement in various online forums especially in terms of moderation in comments and curbing the spread of fake and misleading information. Compared to what it was several years back, online forums these days have become a fertile ground for operators, syndicates and fake “Gurus” to prey on retail investors who are new to the game.

       Personally, I have also fallen victim to fake news, trolls and malicious allegations in online forums through the years. That said, it is the nature of online forums where participants are mostly hidden behind the veil of anonymity and have the luxury of being a keyboard warrior.

       After all, there is no shortcut to investing like all things in life. In-depth research and laborious effort into the quality of companies are prerequisites for retail investors to do well.

       To accept information from strangers at online forums on face value and expect to miraculously excel in investing is a fantasy. Online forums still have its role to play but it comes with “caveat emptor”. Therefore, it would be best for retail investors and listed companies to take comments and information in online forums to be “80% humour and 20% wisdom”.

       Benjamin Franklin in 1722 said “Without freedom of thought, there can be no such thing as wisdom; and no such thing as public liberty, without freedom of speech.”

       It is my belief that everyone has the right to an opinion so long it does not transgress on the sensitivity which constitutes the fabric of our society.

       If listed companies are happy to receive praise and recognition in online forums, it should consider a less heavy handed approach towards negative views of trolls such as flagging and reaching out to moderators of the sites.

       Independent views and freedom of expression are hallmarks of a healthy democracy. And it begins with insignificant unsolicited opinions in online forums.

       Ng Zhu Hann is the author of “Once Upon A Time In Bursa”. He is a lawyer and former chief strategist of a Fortune 500 Corp. The views expressed here are his own.