Retail Trading’s Gap: 63% Confidence, 42% Knowledge
Retail investors who rely on social media answered only 42% of investment knowledge questions correctly. But 63% rated their own knowledge as high, according to FINRA Foundation research published in April 2026. That’s a big contradiction in modern trading. People have market data, trading tools, and confidence, but not the knowledge to use them.
Becoming a serious trader used to mean getting inside a bank, hedge fund, or trading firm. That was where the capital was. It was also where traders learned how to manage risk, size positions, and analyse markets, all within a clear system.
Retail traders had a very different experience. They could open a brokerage account and access the market, but the learning was left to them.
Technology changed that. Data is widely available, trading costs have fallen, and analysis can reach anyone with a phone or laptop. The Bank for International Settlements has documented the growing...
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