Question of the Day: In recent FINRA survey, 30% of investors made _______ stock trades in a 12 month period.

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Sep 01, 2020
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Question of the Day, Investing

Answer: ZERO.

Questions:

  • Why do you think these investors made no trades in a year? Do you think that's a positive or a negative for investors? 
  • Would it surprise you that researchers have found that the more investors trade stocks the more likely they are to lose money? 
  • Why do you think men, on average, trade more frequently than women? 

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Behind the numbers (FINRA survey):

Trading frequency among investors has remained largely consistent with 2015. Thirty percent have not made a single transaction in the past year, 31% have made fewer than four transactions, and 33% have made four or more transactions. Consistent with findings published by other researchers,8 data from the Investor Survey show that men tend to trade more frequently than women. Investors with larger portfolios are also more likely to have made four or more transactions in the past year.

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About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.