from digital investment advisor Betterment found several different reasons investors are continuing to day trade.
When asked what their motivation for day trading is, 58% of respondents who day trade said they want to "make more money in a shorter period of time," according to the data from Betterment and research company Market Cube, who surveyed 1,500 investors over the age of 18 between April 26, 2021 to May 3, 2021.
More than half of the survey respondents said they day trade more often as a result of the pandemic. One reason for this is that many investors felt pressed to find a quick source of income, due to job loss and other factors, and turned to day trading, Dan Egan, vice president of behavioral finance and investing at Betterment, tells CNBC Make It.
As Egan points out, there were many different realities for Americans throughout the pandemic. While some may have had disposable income to use for day trading, others may have seen the opportunity to day trade as a way to make a quick return to pay expenses.warn against trying to pick stocksThat's because it's extremely difficult to pick stocks that will outperform the market, and even harder to do so consistently over time.
MakeIt The industry fails to spell out the real risks, fails to operate safety nets such as self-exclusion, and offers their products on an “execution only” basis which basically means they can blame all negative outcomes from use of their products on their own customers they market to.
MakeIt The brokers take a cut of each transaction, cumulative transaction costs are opaque & transaction costs alone can ruin an account. And that doesn’t take account the scams that goes on on in that industry. Misleading marketing and advertising such products to retail is a scandal.
MakeIt It’s gambling — and online/remote is the crack addiction of gambling. Most day traders lose all their money on the end if they don’t stop before. Some media companies are pushers for the poorly regulated drug dealer brokers and banks who sell drugs under an air of respectability.
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MakeIt Most day traders LOSE money
MakeIt AMC to the moon!!! 🚀
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MakeIt horrible
MakeIt So they can bank. Why else? OHHHHHHHH!!!
MakeIt What separates an investor from a speculator? 👇🏽👇🏽 Let's Be Honest: Are You an Investor or a Speculator?
MakeIt Haha I love the picture you’re trying to paint here… really. However, what you’re failing to report is all the investors who Buy & Hold! 😂