Report: Investors Claim to Be Cautious – Their Trades Say Otherwise

Source: Coindoo Original Title: Report: Investors Claim to Be Cautious – Their Trades Say Otherwise Original Link: 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.

Key Takeaways

• 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.

Technology and generational differences are reshaping how people learn, access, and execute trades.

Crypto Ownership Holds Steady

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 that appears inconsistent with reality given scam prevalence.

The study isn’t just descriptive — it should guide regulators, educators and financial institutions as they respond to evolving investor habits. It frames a diagnostic snapshot of a market in transition: risk tolerance down, risk-taking behavior up, and knowledge lagging behind both.