GraniteShares ETP : New research from ETP provider GraniteShares shows that nearly one in ten regular UK investors have tried their hand at day trading since the start of the COVID-19 pandemic and most say they are making money.
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Will Rhind, Founder and CEO at GraniteShares
- And 60% of them are making money on their trading
- More than a fifth of UK adults have traded shares during the pandemic
Its nationwide study found that of those who have tried day trading, 40% have given it up, but 60% are still doing it and claim to be making money despite current volatility.
The start of lockdowns from March 2020 has driven interest in share and crypto trading and GraniteShares estimates** a fifth (22%) of UK adults have traded shares during the pandemic with nearly half of them (45%) doing more trading or starting trading for the first time.
For most day traders the motivation was the potential rewards with 25% saying they believe they could make more money while 24% say they were attracted by the gains being made in cryptocurrencies while 15% say they wanted to go full-time after starting trading during the crisis.
The research for GraniteShares, which offers UK sophisticated investors a suite of index ETPs tracking FAANG stocks and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK markets, found 44% of those who traded during the pandemic have made money with one in 20 claiming to have made a lot of money on their trading.
However, one in three (33%) admit to losing money on their trading with 6% saying they have lost a lot of money.
More than three-quarters (76%) who have traded during the crisis have invested in individual stocks or cryptocurrencies, but a quarter (26%) have invested in Exchange Traded Funds and 12% have invested through spread betting, the study found.
Will Rhind, Founder and CEO at GraniteShares said: “It is clear that interest in trading went more mainstream during the COVID-19 crisis and that is underlined by the number of people who describe themselves as day traders.
“Most have made money while day trading, but many have not, and some admit to heavy losses, particularly as the Crypto bubble burst, which is more worrying when the cost of living is soaring, and money is tight.
“But there is a growing number of sophisticated investors in the UK and that has driven demand for products such as short and long ETPs which provide the flexibility needed to help navigate volatile market swings on both the long and short sides.”
Source: ETFWorld.co.uk
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