32% of Investors Admit Trading While Drunk, MagnifyMoney Finds
Plenty of consumers have made or routinely make impulse buys — but when it comes to buying stocks, investors typically want to give their purchases a little more thought.
But that doesn’t always happen, given the most recent MagnifyMoney survey finds 66% of investors have regretted an impulsive or emotionally charged investing decision.
Emotions can certainly play a role in major financial decisions such as buying a house or paying for college, but more calculated, logical decisions not based on fleeting feelings might be a better investment strategy.
MagnifyMoney researchers surveyed more than 1,100 investors to see if they let emotions influence their portfolios.
66% of investors have made an impulsive or emotionally charged investing decision they later regretted. This is more common for Gen Zers (85%) and millennials (73%) than Gen Xers (60%) and baby boomers (54%).
32% of investors have traded while drunk. This includes 59% of Gen Z investors who have bought or sold an investment while inebriated — more than any other age group.
Consumers who manage their portfolios generally have a harder time keeping emotions out of investing than those who rely on a financial advisor. Those who self-manage their investments report higher rates of lost sleep and regrettable decisions than those who use an advisor.
Most investors (58%) agree their portfolio performs better when emotions are left out of the equation, but that’s easier said than done.
Nearly half (47%) report difficulties keeping emotions out of investing decisions.
37% of investors have lost sleep worrying about the stock market, and 30% have cried over investing.
The top reasons for tears include losing money in the stock market (43%), feeling overwhelmed (36%) and selling too early (34%).
The stock market swings can be devastating to investors, particularly when a bad day on Wall Street can be a prelude to a long-term crisis. In general, 3 in 10 investors report having cried over investing, and many of those tears came after a loss.
Particularly in today’s world, a single headline about the stock market can put investors and consumers on edge. Additionally, the explosion of retail investing apps has made it easier than ever for everyday traders to make market moves quickly.
“If you live and die with the whims of the market every day, you’re bound to get stressed,” MagnifyMoney Content Director Ismat Mangla says.
To view the full report, visit: https://www.magnifymoney.com/blog/news/emotional-investing-survey/.
MagnifyMoney’s advice and product database helps people compare credit cards, loans, checking accounts and savings accounts. Find out more at www.magnifymoney.com.
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