What Influences Trading Decisions The Most

Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.

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What Impacts Trading Decisions The Most In 2020?

In a recent survey, we gave active traders the chance to tell us what impacts their trading decisions the most in 2020, and here was their response:

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Which of the following influences your trading decisions the most?

  • Economic events: 39.1%
  • Financial data releases: 23.2%
  • Technical analysis: 32.9%
  • Broker education: 4.8%

Our recent September study revealed that economic events (39.1%) and technical analysis (32.9%) were cited as the two most impactful reasons influencing how and when traders make decisions.

Meanwhile, one in four traders see financial data releases as the most influential vehicle in their decision-making.

Broker education (4.8%) lagged behind in our polling, and our surveying revealed educational tools provided by brokers are not necessarily the most influential decision-making vehicles for traders.

Coronavirus Impact on US Household Budgets

Benzinga also asked active traders whether they’ve had to cut back their food budgets and if they believe another food shortage could occur this fall.

Have you cut back on your food budget since the pandemic?

  • Yes: 37.8%
  • No: 62.2%

Approximately six months since lockdowns began in the U.S., Benzinga readers told us their food budgets are holding steady. 62.2% said they’ve not yet cut back on their food budget since the pandemic began. On the other hand, 37.8% indicated that they’ve cut back on overall food spending this year.

Are you worried a second wave of coronavirus cases will lead to grocery shortages?

  • Yes: 45.7%
  • No: 54.3%

A majority of respondents, 54.3%, said a second wave of COVID-19 will not induce more of the grocery and household essential shortages, like toilet paper and hand sanitizer, seen earlier in the year.

This survey was conducted by Benzinga in September 2020 and included the responses of a diverse population of adults 18 or older.

Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 300 adults.

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Henry Khederian contributed to this report.