Investor Sentiment Largely Unaffected by Market Complexity

Posted on July 10, 2014 | AAII Survey

This week’s Sentiment Survey special question asked AAII members how the complexity of the way market orders are processed is affecting their attitude towards investing. The majority of respondents (60%) said the complexity is having no effect. An additional 16% of respondents said the complexity is only having a small or a limited impact. Only 12% of respondents said they felt as if they were at a disadvantage or say their attitudes are adversely affected by the manner in which orders are processed. More than 10% of all respondents clarified their responses by describing themselves as long-term investors, not traders. Another 8% of respondents said they are using limit orders instead of market orders. Here is a sampling of the responses:

  • “Since I do very little short-term trading, the complexity of the buy and sell process impacts my attitude towards investing quite minimally.”
  • “Not at all. I am a long-term investor and don’t think that the effects of the process are very significant for the long-term results.”
  • “Not at all. I know I lose, but not too much each time.”
  • “A small effect, but I’ve changed to using limit orders where possible.”
  • “It makes me feel as if ‘the deck is stacked’ against small retail investors.”