Nearly one in eight stock market investors admit they are addicted to trading, GraniteShares research shows
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Will Rhind, Founder and CEO at GraniteShares
Secret share traders are concealing the extent of their investing as well as the profits and losses they make, new research* from GraniteShares, a global issuer of Exchange Traded Products (ETPs) with more than $2.5 billion under management shows.
Its study among regular stock market investors found just around two out of five (38%) tell their partner or loved ones about all their trading while around 40% come clean about any profits they make. Just 37% are entirely open about any losses they make on the markets.
Around one in eight (12%) describe themselves as addicted to trading rising to nearly one in three (32%) among the under-25s. However the addiction appears to be something people grow out of with just 6% of the over-55s saying they are addicted to share trading.
The research for GraniteShares, which offers a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK US and European markets, however, does show that substantial numbers of regular investors keep quiet about their trading.
Around 17% of regular investors do not tell partners or loved ones about any of their trading while around 16% keep quiet about trading profits and 20% do not reveal anything about any losses.
Others play down the scale of their trading and any profits or losses, the research found. Around one in five (20%) tell partners or loved ones about up to half of their trading volume while 20% talk about up to half of their trading profits and 16% about up to half of their trading losses.
In general however the research shows stock market investors are responsible about how they fund their trading with 76% relying on their salary to found at least some of their share trading and 60% paying for at least some of their trading out of cash savings.
Around 68% say the reinvest trading profits to fund some of their trading. Just one in four say they have used credit cards or loans to pay for some of their trading.
Will Rhind, Founder and CEO of GraniteShares, said: “Keeping finances concealed from partners or loved ones is generally not a good idea as it can lead to nasty surprises and that particularly applies to people losing money.”
“The best advice is to be open about levels of trading and any profits or losses. People generally appear to be responsible about how they fund their trading so the same should apply to how they talk about it to partners or loved ones.”
Source: ETFWorld.co.uk
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