A recent
national survey has revealed that 42% of UK retail investors prefer to conduct
their own research rather than rely on independent financial advisors (IFAs) or
influential investors for trading inspiration.
According
to Capital.com findings, only 10% of traders and investors rely on
financial advisors for investment direction, while 11% turn to social media
platforms, influencers, or renowned investors like Warren Buffett for tips and
inspiration.
When asked
about their most frequently used trading and investment research resources, 21% of respondents cited news articles, while 28% relied on investing websites and platforms to generate trading ideas.
An earlier
survey from last year examined when investors are most active. According
to its findings, 35% of traders prefer the first hour of the trading day for
executing trades. This is closely followed by 30% who favor the last hour. The
least popular time is after lunch but before the last hour, with only 16% of
traders opting for this period.
Growth and Tech Stocks in
Focus
Despite the
current high-interest rate environment and sluggish economic conditions, the
survey indicates a strong interest in growth and tech stocks for the coming
year. 28% of respondents plan to trade or invest in growth stocks, followed by
tech (25%) and value stocks (22%).
Kyle Rodda,
the Senior Market Analyst at Capital.com, attributed the interest in growth and
tech stocks to the artificial intelligence boom, driving bullish
sentiment and risk-taking among investors.
“In
addition to the hype surrounding AI mania across the tech sector, investor
interest in growth stocks was, for a while, also driven by rate cut
expectations,” Rodda added.
Notably,
the survey suggests that UK traders and investors are losing interest in meme
stocks, with only 4% of respondents likely to trade them this year.
Another study by Capital.com from last June revealed that traders who diversify their portfolios and hold positions for longer durations typically experience higher profitability. In contrast, those concentrating on a single market or close positions quickly often achieve less success.
Sectors to Watch in 2024
UK traders
and investors closely monitor several sectors for potential investment
or trading opportunities in 2024. These include technology (32%), energy (30%),
financials (26%), metals and mining (15%), retail (11%), and automotive (8%).
Rodda
explained that the focus on energy and mining sectors is due to heightened
geopolitical risks, such as rising tensions in the Middle East and the ongoing
Ukraine-Russia war, which have led traders to seek opportunities in volatile
oil and natural gas markets.
“Investors and traders have also tapped
into gold as a hedge against the escalating geopolitical tensions,” said
Rodda.
In March, Capital.com announced that it was suspending the ability to create new accounts in the UK. A few weeks later, the company reported expanding its operations to the Middle East after obtaining a local license, which led to the opening of a regional office.
The survey, commissioned by trading platform Capital.com and conducted
by Find Out Now, polled 19,451 UK adults, including 2,036 traders and
investors, between November 21 and December 4, 2023. Investors and traders were
defined as adults who had invested or traded in various financial instruments
within the past 12 months.
A recent
national survey has revealed that 42% of UK retail investors prefer to conduct
their own research rather than rely on independent financial advisors (IFAs) or
influential investors for trading inspiration.
According
to Capital.com findings, only 10% of traders and investors rely on
financial advisors for investment direction, while 11% turn to social media
platforms, influencers, or renowned investors like Warren Buffett for tips and
inspiration.
When asked
about their most frequently used trading and investment research resources, 21% of respondents cited news articles, while 28% relied on investing websites and platforms to generate trading ideas.
An earlier
survey from last year examined when investors are most active. According
to its findings, 35% of traders prefer the first hour of the trading day for
executing trades. This is closely followed by 30% who favor the last hour. The
least popular time is after lunch but before the last hour, with only 16% of
traders opting for this period.
Growth and Tech Stocks in
Focus
Despite the
current high-interest rate environment and sluggish economic conditions, the
survey indicates a strong interest in growth and tech stocks for the coming
year. 28% of respondents plan to trade or invest in growth stocks, followed by
tech (25%) and value stocks (22%).
Kyle Rodda,
the Senior Market Analyst at Capital.com, attributed the interest in growth and
tech stocks to the artificial intelligence boom, driving bullish
sentiment and risk-taking among investors.
“In
addition to the hype surrounding AI mania across the tech sector, investor
interest in growth stocks was, for a while, also driven by rate cut
expectations,” Rodda added.
Notably,
the survey suggests that UK traders and investors are losing interest in meme
stocks, with only 4% of respondents likely to trade them this year.
Another study by Capital.com from last June revealed that traders who diversify their portfolios and hold positions for longer durations typically experience higher profitability. In contrast, those concentrating on a single market or close positions quickly often achieve less success.
Sectors to Watch in 2024
UK traders
and investors closely monitor several sectors for potential investment
or trading opportunities in 2024. These include technology (32%), energy (30%),
financials (26%), metals and mining (15%), retail (11%), and automotive (8%).
Rodda
explained that the focus on energy and mining sectors is due to heightened
geopolitical risks, such as rising tensions in the Middle East and the ongoing
Ukraine-Russia war, which have led traders to seek opportunities in volatile
oil and natural gas markets.
“Investors and traders have also tapped
into gold as a hedge against the escalating geopolitical tensions,” said
Rodda.
In March, Capital.com announced that it was suspending the ability to create new accounts in the UK. A few weeks later, the company reported expanding its operations to the Middle East after obtaining a local license, which led to the opening of a regional office.
The survey, commissioned by trading platform Capital.com and conducted
by Find Out Now, polled 19,451 UK adults, including 2,036 traders and
investors, between November 21 and December 4, 2023. Investors and traders were
defined as adults who had invested or traded in various financial instruments
within the past 12 months.
