Millennial Traders Are Making Risky Bets — Here's Why
Ease of access to the stock market has led many new and young traders to capitalize on volatility and slashed fees , as risky assets and trading activities have seen volumes spike. That's the big takeaway from a recent E-Trade study , which found that more than half of investors younger than 34 (51%) say their risk tolerance has increased since the coronavirus outbreak. That's 23 percentage points higher than the total population. The Findings Over one in three investors (34%) said they're moving out of cash and into new positions — 15 percentage points higher than the total population. Over half of investors (51%) under the age of 34 said they are trading equities and 46% said they’re trading derivatives more frequently, compared to 30% and 22% of the total population, respectively. 9% of young investors said their investment portfolios have recovered since the beginning of the pandemic 50% think a recovery will happen in the next six months, compared to 33% of the total population Personal health (58%) and investment portfolio (53%) concerns remain the top worries for young investors To gain some perspective on how this increase in risky trades is impacting the markets, both positively and negatively, Benzinga spoke with DayTraderPro founder Guy Gentile.
Millennial Traders Are Making Risky Bets — Here's Why
Ease of access to the stock market has led many new and young traders to capitalize on volatility and slashed fees , as risky assets and trading activities have seen volumes spike. That's the big takeaway from a recent E-Trade study , which found that more than half of investors younger than 34 (51%) say their risk tolerance has increased since the coronavirus outbreak. That's 23 percentage points higher than the total population. The Findings Over one in three investors (34%) said they're moving out of cash and into new positions — 15 percentage points higher than the total population. Over half of investors (51%) under the age of 34 said they are trading equities and 46% said they’re trading derivatives more frequently, compared to 30% and 22% of the total population, respectively. 9% of young investors said their investment portfolios have recovered since the beginning of the pandemic 50% think a recovery will happen in the next six months, compared to 33% of the total population Personal health (58%) and investment portfolio (53%) concerns remain the top worries for young investors To gain some perspective on how this increase in risky trades is impacting the markets, both positively and negatively, Benzinga spoke with DayTraderPro founder Guy Gentile.