That’s the percentage of retail investors who trade stocks daily who say they have little or no education on investment strategy, according to a new survey.
The findings in the recent survey by Travis Credit Union, a credit union in Northern California, is the latest evidence that the retail trading boom has lured some bold investors. The results also show the degree to which retail investing has taken off since the start of the pandemic: Nearly two-thirds of all survey respondents (62.1%) said they use apps such as Robinhood to trade, and 57% of those using apps said they started trading just in the last year.
Retail investors gained a reputation as market disruptors earlier this year, but they really don’t have huge amounts invested on an individual basis. The survey found that 44% of those who use apps to trade have less than $5,000 invested in the markets, while one in four have invested less than $500.
And where does this money come from? These app traders are funding their accounts with, you guessed it, all that extra disposable cash and savings we’ve been hearing about. Sixty-five percent use extra spending money, 58% savings, 26% stimulus checks, 18% tax refunds, and 10% money from family. Travis surveyed 2,052 people in the U.S. Feb. 15-March 2.