43% of retail investors are trading with leverage based on survey

Bugsy

Bugsy

According to a Yahoo Finance-Harris poll published on Sept. 9, 33% of people holding stock indicated they’ve been trading more since the pandemic began and a similar number said they’re trading individual stocks more, as opposed to ETFs and mutual funds. The poll surveyed more than 1,000 Americans, from Sept. 4 to Sept. 6.

On a similarly bullish note, 36% indicated they’ve increased the amount of stock exposure in their portfolio. At the same time, just 16% and 17% own less stock and trade less stock, respectively.

Interestingly, respondents with household income less than $50,000 said they traded more frequently since the pandemic and had more stock exposure, even more than the $100,000 or more group. The middle tier of earners, with income between $50,000 and $100,000, were more conservative.
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https://finance.yahoo.com/news/43-o...e-trading-with-leverage-survey-172744302.html

This can only end well.
:banghead: :banghead: :banghead:
 
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can I wrap that into a "credit default swap (CDS)" though?
SparklingOfficialAtlasmoth-size_restricted.gif
 
Damn.

43% doomed before the game begins.

The best one i heard, was someone asking for a 1:3000 broker.
Then someone asked for $150 investor... :D

That's life i guess.
 
And yet there is a crackpot lawyer trolling the site who wants to sue in order to eliminate the minimum account equity rule for PDT margin accounts.
 
And 57% of retail investors are trading with zero leverage?
That is not a wise move.
Make the money work harder!
Make the money work for you!

Zero leverage doesn't mean lower risk.
As long as your mind is not in order, nothing works.
 
maxinger said:
And 57% of retail investors are trading with zero leverage?
That is not a wise move.
Make the money work harder!
Make the money work for you!

Zero leverage doesn't mean lower risk.
As long as your mind is not in order, nothing works.
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Depends... maybe they are trading in tax free savings accounts where you can't use leverage.
 
maxinger said:
And 57% of retail investors are trading with zero leverage?
That is not a wise move.
Make the money work harder!
Make the money work for you!

Zero leverage doesn't mean lower risk.
As long as your mind is not in order, nothing works.
More...
Tradex said:
Excellent point. :thumbsup:

That's what I have been trying to explain for the last 20 years to fellow traders all over the world.
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Not denying this. The problem is the vast majority of people who utilize leverage will not have the discipline to manage their risk. They won't use leverage to 'make money from other people's money'. They will use leverage in order to maximize the amount of money they could potentially make by maxing out any given trade, whether by an all in, a double down, or averaging down, all on a bad trade. And since 90+% will lose the money they are basically gambling with, leveraging has the potential to be catastrophic.

For professionals, sure, make money work for you through risk management, solid system, solid trades. Most people do not full under this category though.
 
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