I believe there are a number of factors that contribute to this.

Greed is of course one of them and perhaps the one with the bigger influence. People see or hear about others making a lot of money and they get desperate to do the same and very often they do it very recklessly and end up losing a lot. They don't take the time to really understand what they are doing, they don't know the risks and they don't have a backup plan if things go south.

Another factor, which is very connected to the first one, is the lack of financial education. A lot of people - especially in our country - never had proper financial education. All they know about finances or investments is what they were told by their account managers from the bank where they have a savings account and, as we all probably know, these guys give some of the worst financial advice you can get because they don't have their customers in mind but act in the interests of the bank instead.

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