Survey reveals 43% of retail investors incurred losses from emotional decisions during market volatility, averaging $1,606 per person.
A June survey of 1,002 retail investors found that emotional trading during market downturns led to significant financial losses. Of those surveyed, 43% reported losing money due to impulsive decisions, with an average loss of $1,606.
The survey highlighted that 25% of participants sold investments during a recent market drop, only for prices to recover shortly after. Despite 31% admitting to emotional trading, just 20% identified themselves as emotional investors, underscoring a disconnect in self-awareness.
Nearly half of respondents made FOMO-driven purchases in the past year, further illustrating the prevalence of emotionally charged investing behavior.