Retail traders are planning to up the stakes on trading this year after most posted gains on their investments last year, new research from GraniteShares, a global issuer of Exchange Traded Products (ETPs) with more than $9 billion under management, shows.
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Catarina Donat Marques , Head of European Retail Strategy at GraniteShares
- Nearly six out of 10 were in the black with trading and investing last year, study shows
Its study with retail traders who hold investment portfolios found 41% plan to increase the amount of cash they trade this year including a third (34%) who expect to spend up to 25% more on trading.
The higher amounts of money going into trading comes off the back of a strong performance last year with nearly six out of 10 (59%) saying they posted gains on their trading. Around one in seven (14%) said they saw returns of more than 20% from trading and investing. Just 3% disclosed losses on trading last year while around one in five (21%) either did not know or preferred not to say what the results of their trading was last year.
Around one in three (33%) of retail investors do not know if they will be trading more this year while 13% plan to cut back on the amount of money they put into trading and around 10% will not be trading or investing.
The research found around 11% of retail investors trade every week with some trading several times a day. However more than half (51%) say they only trade a few times a year.
Catarina Donat Marques , Head of European Retail Strategy at GraniteShares, said: “Strong performances from stock markets have helped retail traders and investors to make relevant gains in the past year, and that is reflected in how many are planning to raise the stakes this year.
Most retail investors are longer term investors with more than half only trading a few times a year although there are substantial numbers trading several times a week and even several times a day.
Our ETPs, that provide long and short leveraged exposure to single stocks, have seen a spike in volumes last year, and our AUM, on a global basis, grew by more than +400%. Sophisticated retail traders are more and more active on such products, used to exploit tactical opportunities offered by the market and enhance returns.”
Source: ETFWorld.co.uk
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