Retail investors have become a powerful force on the stock market. Insider's new column offers novice traders advice on how to succeed with stocks.
Retail investors think inflation is the biggest threat to their portfolios, according to a survey by trading app eToro.
"I am struck by Robinhood's decision to reserve shares for their customers. This may be a strategy to try to build brand loyalty," a finance professor told Insider.
Half of UK investors said they would cut back on other spending to fuel their retail investing habits, the Barclays Smart Investor survey found.
Tori Dunlap, who saved her first $100,000 by age 25, says Robinhood and other trading apps need to be more educational and inclusive.
Even a rumored $20 billion valuation would be a conservative estimate, says S&P Global Market Intelligence about Robinhood's pending IPO.
"We find that retail investors tend to prefer companies in sectors they are likely to be familiar with as consumers," the bank said.
"You can either make money on the squeeze, or make money if it crashes by absorbing the dividends. Either way you hold another day you win."
"The retail bid is back" as stocks with active retail traders outperform the broader market, Goldman Sachs says
Retail options activity has again accelerated to levels not seen since January -and it doesn't seem to be slowing down, JPMorgan said.
"Retail investors will rush to the exit unless there's an immediate rally," Vanda Research analysts said in a note.
Chair Gary Gensler said he asked the regulator's staff to submit recommendations on a range of market rules, including high broker fees.
'SPAC King' Chamath Palihapitiya's Clover Health is currently the most heavily discussed stock among the traders on Reddit's WallStreetBets forum.
"If you think of zero commissions, on paper it sounds great-trading was expensive and now it's free. That's obviously complete nonsense," Gerko said.
Investors are paying renewed attention to cannabis stocks like Tilray, Sundial Growers, and Cronos, says Vanda Research.
eToro has added DeFi tokens Aave and Yearn.Finance YFI to its offering. Demand has boomed as industry heavyweights have backed decentralized finance.
US retail trading volumes were down 26% month on month in April, according to Piper Sandler.