Some 64% of Young Men Day Trading Stocks Feel Like Failures

Surging retail trading isn’t just transforming markets; it’s also highly correlated with demoralization in young men, according to a new study.

One-quarter of men aged 18-29 said they trade stocks daily, and almost two-thirds of them (64%) report feeling like failures, according to a study of 2,000 men published Wednesday by the Institute for Family Studies, a pro-marriage think tank. The findings were strikingly similar to outcomes among men who gamble: Of the 23% of young men who said they gambled daily, including on sports and events, 66% reported similar angst, according to survey, which asked the young men a variety of questions about their personal behaviors and outlooks. Daily fantasy sports and pornography use were similarly correlated to feelings of failure, the survey found.

So day trading in today’s elevated valued stock market equates to gambling?

Or is the “Affordibility-Income Inequality” issue affecting behavior?

Some research suggests young people have embraced risky financial behaviors to try to generate returns in a world where homeownership and other markers of financial success are out of reach. Eighty percent of Gen Z investors said they’d invested or considered investing in stocks, options, crypto or prediction markets because they feel financially behind and see these investments as better tools to meet their financial goals, according to a Northwestern Mutual study.

1 Like

Pretty much inline with what you would expect from a Pareto distribution. Why does this still amaze?

The Captain

3 Likes

Not just today - day trading in general is gambling, especially for the uneducated as most new investors will be.

No. More likely FOMO.

One does not need to day trade to win in the market. It isn’t sexy or as exciting but a simple buy and hold strategy will make one rich over time.

Courtesy of Google AI:

S&P 500 3-Year CAGR: Measured around 23.35% according to recent market tracking metrics.

The advent of the $0 trading fee also doesn’t help deter this behavior.

5 Likes

I don’t know if gambling is the appropriate word but day trading is really hard, it requires intense concentration on multiple screens and a sixth sense about market moves. As in most business ventures you get a few big winners and a long tail of losers.

The people behind the curtain make good money on trades, the industry promotes trading because that’s the way they make money. In that sense, the market is a casino with trades rigged in favor of the house, the people behind the curtain.

The Captain

2 Likes

Sure reads like gambling.

Sure reads like gambling.

5 Likes

OK, I won’t argue with them.

Put your head on straight, try to be better at your job, suffer the disappointments and celebrate the victories and get on with your life. Day trading is for losers.

6 Likes