Millennial, Gen Z Risk Tolerance Soared Since Pandemic Started: E-Trade

And  although only 9% of young investors said their investment portfolios had recovered since the start of the pandemic, 50% said they thought it would happen in the next six months, compared to 33% of the total population.

Among the third-quarter survey's other findings, personal health (58%, the same as in the Q2 survey) and personal investment portfolios (53%, up from 49%) remained the biggest worries for young investors as a result of the pandemic, E-Trade said.

Other top concerns among those under 34, according to the survey, were their jobs and potential job prospects (42%, up from 27%); the effect on the U.S. and global economies (37%, up from 16%); their ability to afford day-to-day living expenses (34%, up from 33%); and their personal vacation and leisure plans (28%, up from 15%).

Although time is on the side of Gen Z and millennial investors, that "doesn't mean they can be complacent or act emotionally," Chris Larkin, managing director of trading and investment product at E-Trade Financial, cautioned.

"Access to the market has never been easier, so investors just embarking on trading should walk before they run," he suggested, adding: "A thoughtful and disciplined approach is key — do your research, set up watch lists, and align your trading strategy with your goals and risk tolerance."

Larkin provided three more key tips to young investors getting started with trading: Do your homework and don't get caught up in stock fads; learn the full spectrum of options trading; and test drive trading ideas without committing actual capital, then monitor a paper trading portfolio and modify it to analyze new scenarios after executing a trade.

— Check out Fidelity's Assets Hit $3.3T on Trading Surge on ThinkAdvisor.