Key takeaways:

• Across the nation, men traded 35.6% more than women in 2022

• Women were more bullish' than men, particularly young investors in their 20s

• Baby Boomers traded the most in 2022, but also sold the most on a relative basis

• Western Australian investors traded the most of any state or territory

With the Selfwealth community growing rapidly over the years, we're able to closely monitor some of the trends that investors latch onto. 

However, it not just what our members choose to invest in. Sometimes, the manner with which investors enter the market, or cohorts within the community invest in the market, offer key insights.

In this article we're focusing on investors that were active in 2022, taking a look at some clear trends that emerged. 

Men Traded More Than Women

Across the Selfwealth community, men traded 35.6% more than women. Delving into the buy-to-sell ratio, the metric we use to see if investors are buying into a stock or selling out of it, trades from men were approximately 62% buys.

On the other hand, women had a slightly higher level of bullishness, with share purchases accounting for 67% of all trades.

The results align with the established view that men have a greater risk appetite when it comes to personal financial gain. Research suggests men tend to actively trade, whereas women favour long-term investing.

Young Women Were the Most Bullish'

By and large, younger women in their mid-20s were the most bullish in their investing throughout 2022. Women aged 23 years old, 27, 26, and 24 all recorded a buy-to-sell ratio in excess of 80%. That means at least eight out of every ten trades made across these cohorts was a share purchase.

The highest buy-to-sell ratio was observed among 18 year old men, where 88% of all investing activity was made up of buys. The next-best result among any male cohort was 72%, with a small variance observed across the rest of the age cohorts for men.

In terms of the highest average trades per cohort, it was a different story. On this front, older men were the most active investors. Men aged 70, 68, 63, 73, and 64 were the most active investors across the Selfwealth platform in 2022. 

In the case of men aged 70 years old, an average of 61.4 trades were made across the course of the year. The other cohorts mentioned above all averaged at least 40 trades in 2022. Interestingly, the most active age group among women was those aged 65 years old, albeit they made far fewer trades, with an average of 27.4 trades each. 

One of the possible reasons behind this discrepancy is the gender pay gap that research has shown to result in a major discrepancy in savings by retirement age. Additional retirement savings may provide more flexibility for older men to trade more frequently.

Baby Boomers Were the Most Active Traders

This year data shows that the Baby Boomer generation was the most active in the market across the course of 2022.

While Gen Z investors made an average of just 6.4 trades throughout 2022, Baby Boomers traded more than 31 times. By way of comparison, Millennials averaged 10 trades per investor, and Gen X investors made an average of 19.3 trades.

Nonetheless, there was an inverse correlation between trades made, and the proportion of buying activity that made up all trading. On the whole, 70% of trades made by Gen Z investors were buys. This figure fell to 66% among Millennials, 62% across Gen X, and just 57% with Baby Boomers. 

It is possible that wealth accumulated over a longer lifetime played a role in Baby Boomers being more active in the market. However, it may also be the case that, having witnessed prior market downturns and recessions, this group was more inclined to sell holdings to either preserve capital, lock in profits for lifestyle needs, or use the money to reinvest elsewhere. 

The data also adds weight to the idea that younger generations tend to have a long-term investment horizon.

Western Australians Lead Trading Activity

By location, Selfwealth members living in Western Australia were the most active in the market. 

They were followed by investors from New South Wales, the Northern Territory, Victoria, Queensland, and further back, South Australia and Tasmania.

Women from the Northern Territory were the most bullish of any segment, with three out of every four trades being share purchases. Meanwhile, men living in Victoria were the least bullish of any cohort, with just 61% of all trades being buy orders.