--- title: "[36/100] The difficulty of A-shares and US stocks outperforming the market" type: "Topics" locale: "zh-HK" url: "https://longbridge.com/zh-HK/topics/36784919.md" description: "Based on public research/statistical data, here is a summary of some commonly cited "rules of thumb" and "rough ranges"—it's worth noting that these numbers often emphasize "overall," "retail investors," and "long-term averages"—for individuals, the results may vary significantly. 📊 A-shares — Retail vs. Large/Institutional Investors, Few Winners In A-shares, there are a vast number of "natural person" (retail) investors. According to recent statistics, there are approximately 195 million retail accounts, accounting for about 99.78% of all accounts. However..." datetime: "2025-11-28T10:37:04.000Z" locales: - [en](https://longbridge.com/en/topics/36784919.md) - [zh-CN](https://longbridge.com/zh-CN/topics/36784919.md) - [zh-HK](https://longbridge.com/zh-HK/topics/36784919.md) author: "[Superjean](https://longbridge.com/zh-HK/profiles/11397201.md)" --- > 支持的語言: [English](https://longbridge.com/en/topics/36784919.md) | [简体中文](https://longbridge.com/zh-CN/topics/36784919.md) # [36/100] The difficulty of A-shares and US stocks outperforming the market Based on public research/statistics, here’s a summary of some commonly cited "rules of thumb" and "rough ranges"—it’s worth noting that these figures often emphasize "overall," "retail investors," and "long-term averages"—for individuals, the results may vary significantly. **📊 A-Shares — Retail vs. Big Players/Institutions: Few Winners** - There are an extremely large number of "natural person" (retail) investors in A-shares. According to one statistic, as of recently, there are about 195 million retail accounts, accounting for approximately 99.78% of all accounts.  - However, these retail investors contribute over 80% of the market’s trading volume/turnover, yet they receive very little of the market’s overall profits—some statistics suggest retail investors earn less than 9% of the market’s profits.  - In other words, the vast majority of retail investors don’t make money from frequent trading. Many statistics conclude that: - The loss ratio is very high for small accounts (e.g., those with low market value or little capital)—for example, retail investors with "market value below 100,000 yuan" average losses of over 20%.  - Retail investors as a whole tend to lose money: some statistics say "the average annualized return for A-share retail investors in recent years has been negative."  - Regarding profit distribution, some argue that the A-share market actually follows a "0.5-99.5 rule": a tiny minority of big players or institutions (about 0.5%) earn most of the profits, while the vast majority (≈ 99.5%) of investors don’t make money.  - Overall, for the average retail investor, becoming a long-term winner in A-shares is very difficult—most people are likely to experience long-term losses or meager returns.   Conclusion: In A-shares, the vast majority of retail investors are losers—or at least unable to sustain profits. Winners are usually a minority of big players/institutions with large capital or different strategies. **🌎 U.S. Stocks (American Market) — Retail vs. Institutions + The Difficulty of "Beating the Market"** Compared to A-shares, the U.S. market has a different structure and participant composition, which affects the "win vs. loss" ratio. - Institutional investors dominate the U.S. market, while individual retail investors account for a relatively small share of market capitalization/weight.  - Multiple studies (institutional + academic) have found that the average individual investor (retail) tends to underperform the broader market (e.g., indices like the S&P 500). For example, one statistic shows that the average retail investor underperforms by about 6.1% annually over the long term.  - **Some research indicates that over long cycles (e.g., ten or twenty years), only about 15%–20% of retail accounts can outperform the market/index.**  - Considering that most retail investors prefer short-term trading, frequent buying and selling, and high turnover, these actions often lead to unfavorable "win-loss ratios" due to poor market timing, fees, taxes, etc.  - However, this also means—while most retail investors perform poorly over the long term, a small portion of retail/individual investors do outperform the market. With the right approach (e.g., long-term holding, low costs, proper diversification, reduced trading frequency), it’s possible to become a winner. Conclusion: In the U.S. market, compared to A-shares, the proportion of retail investors who "beat the market/make profits" is slightly higher, but the overall trend remains "a minority profit, while most underperform the index or lose money." **⚠️ Why the Odds of "Making Money in Stocks" Are So Low—Common Reasons and Mechanisms**   Whether in A-shares or U.S. stocks, the following common reasons make it difficult for most people to become consistent winners: - **Frequent Trading/High Turnover** — Many hope to profit from "buying low and selling high" or "short-term fluctuations," but frequent trading often erodes returns due to timing, fees, taxes, etc.  - **Information Asymmetry + Skill Gaps** — Institutions and professional investors typically have more resources, research capabilities, and information channels, allowing deeper insights into company performance and macroeconomic trends; retail investors often rely on limited information, making rational long-term decisions difficult.  - **Behavioral Biases/Psychological Factors** — Including chasing trends, blindly following the crowd, greed or fear, short-sightedness, impatience, etc., leading to frequent mistakes.  - Market Structure and Costs — Fees, stamp duties, slippage, taxes, and transaction costs eat into investment returns over time—especially for retail investors.  - Extremely Uneven Profit Distribution — Most accumulated wealth is created by a few "super winners" (big players, institutions, early investors, long-term holders of high-growth stocks), while ordinary stocks or average performers may yield minimal or negative returns.  **🎯 Estimates of "Winners vs. Losers" (Long-Term/Retail Perspective)** **Market / Type** **Approx. Winner Ratio / Outperformers\*** **Losers / Underperformers\*** A-Shares — Retail (Average Individual, Small Accounts) Very Few—likely single-digit % (some studies say 0.5% "big players" take most profits) Vast Majority (90%+) Lose or Underperform Long-Term A-Shares — Retail with "Larger Capital, Long-Term/Value Investing" Can Become Winners / Achieve Positive Returns (But Low Ratio) — U.S. Stocks — Retail / Individual Investors Overall ~ 15%–20% May Outperform Market Most (\> 80%) Underperform or Lose Money U.S. Stocks — Retail with "Long-Term, Low-Cost, Diversified + Patient" Approach More Likely to Become "Winners" — \* "Winners/Losers" is a simplified classification—not equivalent to "making/losing money." Winners refer to those who "consistently outperform market averages/achieve positive returns/strong performance"; losers are those with "poor long-term returns/losses/underperformance." **✅ Final Verdict: "Making Money" vs. "Losing Money" in Stocks—Very Difficult, But Not Impossible** Overall, treating "stock trading" as a way to make money—over the long term—is actually "very difficult" for the average retail/individual investor. Whether in A-shares or U.S. stocks, the average people who rely on "frequent trading to chase volatility," "follow trends," or "short-term speculation" generally have low win rates and returns. But if you can do the following: - Hold long-term (avoid frequent trading/turnover) - Select stocks/targets carefully (value companies, stable firms) or diversify widely (funds/indices) - Control costs (trade less, avoid high fees/taxes) - Stay patient, unaffected by short-term market emotions —then becoming one of the market’s "few winners" is possible. Some U.S. market research shows about 15–20% of retail investors can outperform the market. For A-shares, a tiny minority of big players/those with larger capital/correct strategies do make money, but most retail investors struggle to sustain profits. **💡 Suggestions (Based on Above Analysis + Investment Planning)** - If you invest in A-shares/U.S. stocks, consider stocks as long-term assets, not "quick money" tools. Long-term, low-cost, and patience significantly improve success rates. - Avoid frequent chasing of trends; don’t blindly follow the crowd or have unrealistic expectations. - If you lack deep knowledge of company fundamentals/earnings/macroeconomics, consider index funds/ETFs as a diversified approach to reduce single-stock risk. - Keep learning—understand companies, industries, economic trends, risk management—so you’re more likely to be among the few "winners" rather than "bagholders." ### 相關股票 - [SSE Index (000001.CN)](https://longbridge.com/zh-HK/quote/000001.CN.md)