Rushed decisions are the number one cause of stock market misery, finds new study of UK investors

One in four (26%) retail investors are considering social trading in 2018, according to new research from financial technology group ayondo. In a survey of 500 investors, participants were quizzed about their investment habits, along with what they felt were the main barriers to success in the stock markets.

The results indicate that many people are leaning towards social trading because they find traditional investing overcomplex and time-consuming. When asked what prevented them from being more successful investors, almost half (44%) cited their lack of knowledge and experience of the markets, while a third (33%) said that investing was too complicated. A similar proportion (32%) said that they were held back by time constraints.

Social trading offers would-be investors a solution to these common issues, as it allows people to share and follow expert traders’ investment moves, proportionally and on a real-time basis. This means that users can effectively trade in the markets without having to consistently spend time and effort carrying out their own research.

This model would appear to suit most investors – in the study, 52% of respondents stated that they always refer to the opinion of experts or peers before making any investment decision.

Mita Natarajan, Chief Business Development Officer ayondo Group says: “Becoming a successful investor requires a huge amount of commitment. Many people don’t have the time to research stocks or watch the markets and they can end up losing money as a result. A practical solution to this is to let experts make the decisions for you, which is where social trading comes in.”

SGX-listed Financial Technology Group ayondo is considered as one of the FinTech pioneers in Europe which has capitalised on the opportunity arising from emerging digital technologies and changing trends in the financial industry. While having their core retail customer markets in Europe, the Group focusses on pursuing their Asian B2B strategy.