Traders Union research: 65% of investors learn from their own experience
Retail investors most often learn about investing through practice, with personal experience becoming the main source of knowledge for many. This is the conclusion reached by Traders Union analysts.
According to the study, “How Do People Learn to Invest?,” 42% of respondents began seriously studying investing only after entering the market. This includes 11% who started learning after suffering a loss or making an investment mistake. Another 7% admitted they had never seriously studied investing at all.
Personal experience was the main source of knowledge for 30% of investors. Another 21% said they learned the most from financial websites and articles, while 17% pointed to videos and social media. Books and structured courses were the primary source for 13% of respondents, brokers and financial professionals for 11%, and AI-based tools for 8%.
At the same time, 65% of study participants said their own investment decisions had taught them most or a substantial share of what they know. Another 24% considered practical experience useful but acknowledged that other sources had contributed more to their knowledge.
For continued learning, investors most often use financial websites and articles, selected by 58% of participants. Videos and social media are used by 45%, while 36% rely on materials from brokers and financial professionals. Another 33% already use AI tools, making them a more popular learning source than books and courses, which are used by 28%.
Courses are linked to a higher level of knowledge
The highest level of investment knowledge was demonstrated by respondents who mainly learned through books and structured courses. They were followed by investors who learned from brokers and financial professionals, as well as users of financial websites and articles.
Knowledge levels were lower among those who relied primarily on their own experience. Investors who mainly used AI tools performed even worse, while users of videos and social media ranked in between.
The study also found a notable gap between investors’ confidence and their actual knowledge. While 43% of respondents rated their knowledge as high or very high, only 29% demonstrated a high actual level of knowledge. At the same time, nearly one-third of highly confident investors showed a relatively weak understanding of basic investment principles.
As a reminder, a previous Traders Union study found that 58% of crypto traders use social media.