People aren't holding stocks for very long ⏳

It's no wonder why so many underperform 📉

(Source: eToro)

For whatever reason, people aren’t holding stocks for as long as they used to.

According to a new analysis from eToro, the average holding period for U.S. stocks was 10 months in 2022. This is down from more than five years in the mid-1970s.

Those who have short holding periods are informally referred to as traders. That’s in contrast to those with long holding periods, who are often characterized as investors.

Why do people trade?