There is no single "official" census of stock traders, but industry surveys, academic studies, and trading volume data provide a clear breakdown. The ratio depends entirely on who you are counting (Retail vs. Institutional) and what timeframe they trade (Day Trading vs. Long-term Investing).
1. The Professional Breakdown (Institutional & Fund Managers)
Among professional money managers, the line is blurred. Most use a Hybrid Approach, using fundamentals to decide what to buy, and technicals to decide when to buy it.
Usage of Technicals:
A survey of 692 fund managers found that 87% place "at least some importance" on technical analysis. However, only 18% preferred technicals as their primary method over fundamentals.
2. The Retail Breakdown (Individual Traders)
For individual traders, the split is heavily dictated by their time horizon.
Day Traders / Swing Traders
~90% Technical
Short-term traders almost exclusively use technical analysis (charts, volume, price action) because fundamental data changes too slowly to be useful for trades lasting minutes or days.
Retail Investors (Buy & Hold)
~80% Fundamental / Sentimental
Individuals buying for retirement or long-term growth typically rely on fundamentals (P/E ratios, dividends) or "narrative" investing (buying companies they like/know).
3. The "Volume" Reality (Who actually moves the market?)
If you look at market volume rather than the number of people, the market is dominated by technical/quantitative trading.
High-Frequency Trading (HFT): Algorithms account for roughly 50–60% of all US equity trading volume. These are purely technical/quantitative; they do not care about a company's business model, only about mathematical inefficiencies in price.
Summary Table
| Trader Type | Primary Strategy | Est. Percentage of Group |
|---|---|---|
| Day/Swing Traders | Technical | 90% + |
| Long-Term Investors | Fundamental | 80% + |
| Hedge Funds/Quants | Technical/Quant | 30% (but high volume) |
| Mutual/Pension Funds | Fundamental | 95% |
Key Takeaway
If you are looking at short-term price action, you are competing in a market where 90% of the participants (and the robots controlling 60% of the volume) are looking at technical indicators. If you are holding for years, the technical noise fades, and the market is driven almost entirely by fundamentals.
The main difference lies in the holding period and time commitment required.
Day Trading
- Positions closed same day
- Requires full-time attention
- Multiple trades per day
- No overnight risk
Swing Trading
- Positions held days to weeks
- Part-time friendly
- Fewer trades, bigger moves
- Overnight exposure accepted
The most effective indicators for swing trading include:
Moving Averages (EMA 9, 20, 50)
Help identify trend direction and potential entry points during pullbacks.
RSI (Relative Strength Index)
Identifies overbought (>70) and oversold (<30) conditions for potential reversals.
MACD
Excellent for spotting momentum changes and trend confirmations.
Support & Resistance Levels
Key price levels where buying or selling pressure tends to emerge.