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 influence of retail investors. Meanwhile, no-fee brokerages and online communities have brought more people into financial markets.
But easier access has exposed another problem. Being able to trade is not the same as knowing how to trade well. Opening an account is easy. Knowing how much to risk, when to cut a loss, and how to stay disciplined under pressure is much harder.
