The UK and the US have both been financial hubs for centuries. As a result, booming trading exchanges have created bubbling markets, with investors and traders all trying to grab their share of the profits.
But have you ever wondered how US and UK investors compare against each other? Keep reading for some investing behavioural insight. And, some takeaways you might want to apply to your own trading activity.
UK and US trading profiles
According to new research from online trading platform xtb, here’s the typical profile of an average UK trader:
Starting age – 31
Total amount spent – £17,150.38
How they began – encouraged by a friend or family member
Inspiration for trading and investing – to make money
Way of learning – online content and material
Then, across the pond, here’s what the average US trader looks like:
Starting age – 30
Total amount spent – £15,307.33
How they began – encouraged by a friend or family member
Inspiration for trading and investing – to make money
Way of learning – online content and material
As you can see, there are plenty of similarities in how most traders begin, what motivates them, and that they learn from online sources like The Motley Fool!
Trading successfully in UK markets
There’s nothing wrong with some friendly competition and everything being equal, I’d put my money on UK investors having the smarts to see better performance than American investors.
Here’s how you can boost your trading abilities and hopefully become a better investor:
- Easy and cheap access to FTSE-listed firms – a UK share dealing account can provide you with excellent buying opportunities at much better price points compared to overvalued US stocks
- Use a stocks and shares ISA – this means that you don’t have to pay any tax on your investing gains
- Don’t overtrade – making too many moves can rack up fees, which will eat into your profits
- Stay on track – whilst the US remains consumed by cryptos and meme stocks, you can use online resources to hunt out top stocks and shares.
What to look for in a solid investment
Whether you’re a UK trader or investor using technical or fundamental analysis when you’re carrying out research, here are some universal tips to help you pick potentially great investments:
- Always try and keep a long-term mindset, picking stocks you think will stick around for years to come
- With high inflation and low interest rates, be wary of unprofitable shares or those with a sky-high P/E ratio
- Don’t presume that a drop in share price guarantees a bounce back to previous highs
- Avoid following trends, look for businesses with a proven track record and good future prospects
Making money when investing during volatile markets
Although periods of volatility can be a dream for UK traders, long-term investors can also benefit.
Instead of chasing short-term gains based on momentum swings, you can use the opportunity to ‘buy the dip’ and pick up quality shares and funds to bolster your portfolio.
Right now, market conditions mean that there’s plenty of opportunities for eagle-eyed UK investors to snap up bargain investments!