A recent national survey found that 42% of retail investors in the UK conduct their own research for trading inspiration, rather than relying on independent financial advisors (IFAs) or influence investors. It became clear that he liked it.
According to research from Capital.com, only 10% of traders and investors rely on financial advisors for direction in their investments, while relying on social media platforms and influencers like Warren Buffett for tips and inspiration. 11% of people rely on famous investors.
When asked about the trading and investment research resources they use most often, 21% of respondents cited news articles and 28% relied on investment websites and platforms to generate trading ideas.
An earlier study last year looked at when investors were most active. According to its findings, 35% of traders prefer the first hour of the trading day to execute trades. This is closely followed by his 30% favoring his last hour. The least popular time period is after lunch until the last hour, with only 16% of traders choosing this time period.
Focus on growth stocks and high-tech stocks
Despite the current high interest rate environment and weak economic conditions, the survey shows strong interest in growth and tech stocks next year. 28% of respondents plan to trade or invest in growth stocks, followed by tech stocks (25%) and value stocks (22%).
Kyle Rodda, senior market analyst at Capital.com, said the artificial intelligence boom has increased interest in growth and tech stocks, spurring bullish investor sentiment and risk-taking.
“In addition to the hype surrounding AI mania across the tech industry, investor interest in growth stocks has also been driven by expectations for rate cuts for some time,” Rodda added.
Remarkably, the survey suggests that UK traders and investors are losing interest in meme stocks, with just 4% of respondents likely to trade meme stocks this year. ing.
Another study conducted by Capital.com last June found that traders who diversify their portfolios and hold positions for longer periods typically experience higher profitability. In contrast, those who concentrate on a single market or close positions quickly are often less successful.
Sectors to watch in 2024
UK traders and investors are closely monitoring several sectors for potential investment and trading opportunities in 2024. These include technology (32%), energy (30%), finance (26%), metals and mining (15%), and retail (11%). , automobiles (8%).
Rodda said the focus on the energy and mining sector is due to rising geopolitical risks such as rising tensions in the Middle East and the ongoing Ukraine-Russia war, with traders worried about volatile oil and mining. He explained that the company is exploring opportunities in the natural gas market.
“Investors and traders are using gold as a hedge against rising geopolitical tensions,” Rodda said.
Capital.com announced in March that it would suspend the ability to create new accounts in the UK. A few weeks later, the company reported expanding into the Middle East after obtaining a local license, which led to the opening of a regional office.
The research was commissioned by trading platform Capital.com and conducted by Find Out Now, and surveyed 19,451 UK traders, including 2,036 traders and investors, between 21 November and 4 December 2023. It was conducted on adults. Investors and traders are defined as adults who invest or trade. Various financial products within the past 12 months.
A recent national survey found that 42% of retail investors in the UK conduct their own research for trading inspiration, rather than relying on independent financial advisors (IFAs) or influence investors. It became clear that he liked it.
According to research from Capital.com, only 10% of traders and investors rely on financial advisors for direction in their investments, while relying on social media platforms and influencers like Warren Buffett for tips and inspiration. 11% of people rely on famous investors.
When asked about the trading and investment research resources they use most often, 21% of respondents cited news articles and 28% relied on investment websites and platforms to generate trading ideas.
An earlier study last year looked at when investors were most active. According to its findings, 35% of traders prefer the first hour of the trading day to execute trades. This is closely followed by his 30% favoring his last hour. The least popular time period is after lunch until the last hour, with only 16% of traders choosing this time period.
Focus on growth stocks and high-tech stocks
Despite the current high interest rate environment and weak economic conditions, the survey shows strong interest in growth and tech stocks next year. 28% of respondents plan to trade or invest in growth stocks, followed by tech stocks (25%) and value stocks (22%).
Kyle Rodda, senior market analyst at Capital.com, said the artificial intelligence boom has increased interest in growth and tech stocks, spurring bullish investor sentiment and risk-taking.
“In addition to the hype surrounding AI mania across the tech industry, investor interest in growth stocks has also been driven by expectations for rate cuts for some time,” Rodda added.
In particular, the survey suggests that UK traders and investors are losing interest in meme stocks, with just 4% of respondents likely to trade meme stocks this year.
Another study conducted by Capital.com last June found that traders who diversify their portfolios and hold positions for longer periods typically experience higher profitability. In contrast, those who concentrate on a single market or close positions quickly are often less successful.
Sectors to watch in 2024
UK traders and investors are closely monitoring several sectors for potential investment and trading opportunities in 2024. These include technology (32%), energy (30%), finance (26%), metals and mining (15%), and retail (11%). , automobiles (8%).
Rodda said the focus on the energy and mining sector is due to rising geopolitical risks such as rising tensions in the Middle East and the ongoing Ukraine-Russia war, with traders worried about volatile oil and mining. He explained that the company is exploring opportunities in the natural gas market.
“Investors and traders are using gold as a hedge against rising geopolitical tensions,” Rodda said.
Capital.com announced in March that it would suspend the ability to create new accounts in the UK. A few weeks later, the company reported expansion into the Middle East after obtaining a local license, leading to the opening of a regional office.
The research was commissioned by trading platform Capital.com and conducted by Find Out Now, and surveyed 19,451 UK traders, including 2,036 traders and investors, between 21 November and 4 December 2023. It was conducted on adults. Investors and traders are defined as adults who invest or trade. Various financial products within the past 12 months.