Industry Research
80% of Retail Investors Lose Money
DALBAR's Quantitative Analysis of Investor Behavior reveals the cost of emotional investing
Source
DALBAR
Year
2023
Study Type
Quantitative Analysis
Key Findings
- ✓ 80%+ of retail investors lose money in volatile markets
- ✓ Average investor underperforms the market by 3-5% annually
- ✓ Emotional decisions (FOMO, panic selling) drive most losses
- ✓ Investors who write down exit strategies perform 2x better
Why This Matters
Most people invest based on emotion (FOMO, fear, greed) rather than strategy. They chase gains they saw someone else make, panic sell during downturns, and don't have written exit strategies.
ReasonKit's BedRock tool forces you to ask: "What is your written exit strategy?" If you can't answer that, you're gambling—not investing. That's why 80% lose money.