The financial world was recently abuzz over a viral research report allegedly from Founder Securities Co.,Ltd., claiming that "98.7% of retail investors lose money in A-shares." This sensational statistic immediately sparked heated debates, with many investors dismissing it as exaggerated clickbait.
**Questionable Data and Obvious Flaws** The report, which circulated widely on social media, asserted that accounts under 100,000 yuan suffered near-total losses. However, scrutiny reveals glaring issues: 1. **Unclear Data Source** – The report lacks transparency, failing to cite official exchange data or specify sample size and timeframe. 2. **Contradicts Official Figures** – According to 2025 data from the China Securities Association and stock exchanges, retail investor losses stood at 81.1%, with 18.9% turning a profit—far from the claimed 98.7%. 3. **Suspicious Origins** – The statistic closely mirrors unverified claims from self-media platforms, raising doubts about its authenticity.
**The Reality for Retail Investors** While losses are common, the situation isn’t as dire as the report suggests: - **Capital Matters** – Smaller accounts (under 10,000 yuan) face a 99.9% loss rate, but portfolios above 1 million yuan see 90% profitability. - **Trading Frequency** – Frequent traders (15+ monthly transactions) lose money 83% of the time, while those trading twice monthly achieve 15% annual returns. - **Behavioral Pitfalls** – Losses often stem from chasing trends (35%), overtrading (28%), and poor risk management (22%), not just market downturns.
**Why Sensational Reports Spread** Analysts increasingly rely on shock value to capture attention in a crowded information landscape. Extreme claims like "98.7% losses" exploit investor anxiety, driving engagement—even at the cost of credibility.
**How Retail Investors Can Protect Themselves** 1. **Verify Sources** – Prioritize data from exchanges and regulatory bodies over unsubstantiated claims. 2. **Trade Less, Hold Longer** – Reduce transaction frequency and focus on quality long-term holdings. 3. **Tailor Strategies** – Smaller accounts should consider index funds or blue chips; larger portfolios can diversify across sectors. 4. **Set Rules** – Implement strict stop-loss (e.g., -10%) and take-profit (e.g., +20%) thresholds to curb emotional decisions.
The incident underscores the need for skepticism toward hyperbolic research. For retail investors, disciplined strategies—not sensational headlines—are key to navigating volatile markets.
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