Report: Investors Claim to Be Cautious – Their Trades Say Otherwise
America’s investing landscape is shifting in contradictory ways, according to a new nationwide survey. People are less comfortable with risk — but they haven’t actually stopped taking it.
The FINRA Investor Education Foundation’s latest research suggests that confidence has cooled meaningfully since 2021.
- Americans say they want less risk but still engage in speculative trading.
- Crypto ownership stayed steady while interest in additional purchases fell.
- Younger investors take the riskiest trades despite lower self-declared risk appetite.
- Financial literacy remains weak, particularly among those using complex strategies.
Only a small share of respondents now say they’re willing to swing for the fences with their money, particularly among younger adults — historically the group most comfortable with speculative moves.
That pullback coincides with fewer first-time investors entering markets, and demographic participation that looks more like pre-2021 patterns. Gains made by younger adults, people of color, and men have partially unwound.
Yet Behaviors Tell a Different Story
Despite what people say about risk aversion, their trading habits don’t fully match.
Younger participants continue to drive complex strategies such as options and margin borrowing at much higher rates than older cohorts.
Many of them also rely on social media — especially YouTube and influencer commentary — to guide decisions.
FINRA’s Chief Economist Jonathan Sokobin noted that technology and generational differences are reshaping how people learn, access, and execute trades.
One of the survey’s more surprising findings is that crypto ownership held steady. Over a quarter of participants still hold digital assets — almost unchanged from 2021.
What did decline is enthusiasm for buying more: fewer respondents express interest in expanding their crypto exposure.
Knowledge Gap Persists — And It Bites the Most Active Traders
The study also revealed a painful irony: even sophisticated strategies are being used by investors who don’t fully understand them.
FINRA’s quiz on core investing topics produced mediocre results overall. Questions on margin and short selling were most frequently missed — including by many people who actually use margin to trade.
More people fear being defrauded than two years ago, but the vast majority don’t believe they’ve been targeted — a dynamic FINRA views as inconsistent with reality given scam prevalence.
Sokobin emphasized that the study isn’t just descriptive — it should guide regulators, educators and financial institutions as they respond to evolving investor habits.
He framed it as a diagnostic snapshot of a market in transition: risk tolerance down, risk-taking behavior up, and knowledge lagging behind both.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
