Latest news with #retailtraders
Bloomberg
16 hours ago
- Business
- Bloomberg
Stocks Are Defying the Naysayers. They Can Keep Going.
The S&P 500 Index just rallied back to all-time highs, brushing off the April tariff shock, the conflict with Iran and the insidious and persistent increase in US continuing jobless claims. A growing chorus of bears thinks traders are whistling past the graveyard, and they're far from crazy to think so. But then again, index highs almost always feel like this. Consider August 2020, when the Covid-19 pandemic was still in full swing. The government data had put unemployment at over 10%, and yet blended forward price-earnings ratios were in the 99th percentile of the previous two decades. There was some general optimism about the prospects for a vaccine, but clinical trials were still ongoing and a summer surge of Sun Belt cases had dashed hopes for a quick resolution to the pandemic disruptions. Meanwhile, a popular narrative posited that 'dumb money' retail traders were driving the stock rally. How did that turn out? Even after the Aug. 18 high, the index returned another 11.5% in 2020 and 28.7% in 2021. Not too shabby.
Finextra
a day ago
- Business
- Finextra
Why Training Still Beats the Hype: Lessons from a Modern Trading Trap: By Daniel Schlaepfer
Retail traders today face a paradox. Markets have never been more accessible, or more hazardous. What looks like opportunity can quickly become a trap, especially in the age of social media-fueled speculation. The recent implosion of stocks like Jayud Global Logistics (JYD) has once again exposed the painful divide between how retail and professional traders experience the same event. But beneath the headlines of scams and volatility lies a deeper truth: success in this environment is not about luck or hype; it's about preparation, training, and discipline. Retail Traders: Easy Targets in a Gamified Arena As reported by The Wall Street Journal, a growing number of U.S.-listed micro-cap stocks - many with ties to obscure Chinese firms - have been used in social media pump-and-dump schemes. Stocks like JYD, Lixiang Education, and NetClass Technology followed the same pattern: rapid run-ups driven by coordinated buzz, followed by devastating crashes once insiders dumped their positions. For retail investors lured in at the top, the results have been catastrophic. Some were told these stocks were 'Cash Cows,' others were encouraged to keep doubling down after major losses. In some cases, online groups tracked losses in the millions, leaving behind not just financial damage but deep mistrust. Professional Traders: Same Stock, Very Different Outcome While many retail traders were caught off guard, experienced professionals approached these stocks differently. The same volatility that created chaos for some created opportunity for others, but only because they were equipped with the tools and training to navigate it. Here's how: 1. Short Locates and Execution Readiness Professional traders know the importance of having systems in place to secure short locates, particularly in hard-to-borrow stocks. This doesn't just allow them to short a collapsing stock, it allows them to be ready to trade in either direction as conditions evolve. Those who prepared early and executed with a volatility-tested plan were better positioned to manage risk and act decisively. 2. Risk Management and Discipline Rather than chasing a stock during its initial surge or reacting emotionally to price swings, professionals study the tape for signals, whether it's an exhaustion pattern, shift in order flow, or a change in liquidity. Disciplined traders avoid impulsive entries and instead build a plan that balances opportunity with strict risk controls. Managing borrow costs, avoiding short squeezes, and controlling position sizing are all part of the equation. 3. Pattern Recognition from Experience Pump-and-dump schemes follow a recognizable rhythm. Professionals trained in small-cap trading learn to spot the early signs: a sudden spike in social media chatter, unusual pre-market activity, abnormal volume, or a cluster of volatility halts. Being able to differentiate between genuine momentum and possible scams is a key skill, and one that comes from experience, not excitement. The Real Lesson: Training and Discipline Drive Professional Success This isn't a tale of good guys versus bad guys, or winners mocking losers. It's a wake-up call for anyone stepping into the modern trading arena. While platforms advertise ease of access and instant payouts, the reality is that the markets remain unforgiving, especially for those without guidance. What separates long-term success from painful losses isn't a secret algorithm or a better app. It's the kind of methodical thinking, structured education, and battle-tested strategy that professionals rely on day after day. Closing Thought As regulators tighten enforcement and platforms explore better guardrails, the responsibility also lies with the trading community. If we want fewer horror stories and more sustainable outcomes, we need to start more conversations about how professionals trade, and how to better equip all market participants with the training needed to avoid potential scams and spot the opportunities worth pursuing.
Yahoo
17-06-2025
- Business
- Yahoo
The stock market's secret weapon: Insatiable demand from American retirement accounts
Americans are snapping up huge volumes of stock via their retirement accounts, Goldman Sachs says. The TINA trade—which stands for There is No Alternative to stocks—is alive and well, Goldman said. Strategists said they believed hot demand for stocks could help drive the S&P 500 to fresh highs. For US households, there's still no alternative to the stock market. The TINA trade in stocks — which stands for There Is No Alternative — was thought to be waning in recent years as rising interest rates since 2022 boosted bond yields for the first time in years, giving investors another option to lock in steady returns. However, TINA appears to be back in full swing, and the impulse is particularly strong in US retirement accounts like 401(k)s, Goldman Sachs analysts wrote in a recent note. Strategists at the bank pointed to red-hot demand for stocks in US retirement accounts, with total 401(k) allocations to equities in the US swelling to $8.9 trillion in 2024. In 2022, 71% of 401(k) assets were allocated to stocks, up from 66% in 2013. Among account owners in their 20s, the allocation is even higher, with the average investor allocating 90% of their portfolio to stocks, the bank found. Retail traders, meanwhile, have snapped up around a net $20 billion in stocks over the last three months, according to estimates from Goldman's trading desk. Altogether, roaring demand from retirement accounts and retail brokerage accounts paints a healthy backdrop for the stock market. US household demand is a key pillar of strength for the market, the bank said. US households have raised their total stock allocation to 49% in recent years, the highest level on record, and the bank said it expects households to directly purchase $425 billion in equities this year. Those are signs that the TINA trade is in full swing, a major bullish catalyst for stocks, strategists said "TINA trade remains alive and well in US retirement accounts," a team of strategists led by David Kostin wrote in a note on Friday. "We believe that persistent household equity demand and high allocations to equities will continue to support elevated equity valuations. However, the bank also notes that the top 10% of households by wealth represent 87% of household equity ownership, meaning demand is being driven by a relatively small slice of the population. The analysts added that an even smaller group—the top 1%—has been the primary driver of equity demand in the last 30 years. The bank anticipates the S&P 500 rising to a record high of 6,500 over the next 12 months, implying 7% upside from the index's current levels. Goldman recently lifted its year-end price target for the S&P 500 to 6,100. Previously, the bank slashed its target for the index to account for the impact of tariffs, but has since lifted its economic outlook amid the easing trade tensions and progress on negotiations. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arabian Business
13-06-2025
- Business
- Arabian Business
Dubai's Global Village opens vendor applications for Season 30 as visitor numbers hit 10.5m
Global Village Dubai has officially opened applications for vendors to participate in its milestone Season 30, inviting proposals for the 'Restaurant and Coffee Shops' and 'Open Market' categories. Entrepreneurs, culinary innovators, and retail traders are encouraged to submit their concepts for key areas across the attraction, including popular zones such as Road of Asia and the iconic Indian Chaat Bazaar. There is also an opportunity to propose new open market ideas, making Season 30 a launchpad for fresh, high-impact business concepts. Global Village in Dubai The call for proposals follows the success of Season 29, which welcomed a record 10.5m visitors and featured: More than 3,500 retail outlets More than 250 dining experiences More than 75 new partners 80 new concepts launched across categories This performance underscores the high visibility and business potential that Global Village offers to participants each year. Global Village continues to serve as a powerful platform for entrepreneurial growth, combining footfall, diversity, and world-class infrastructure. Its focus on cultural celebration, unique shopping experiences, and international cuisine attracts a broad visitor base from across the UAE and beyond. The venue's reputation for business support, operational stability, and innovation-friendly environment makes it an attractive destination for startups and established brands alike. How to apply
Yahoo
25-05-2025
- Business
- Yahoo
Record $4.1 Billion Retail Buying Spree: What This Market Recovery Means For Your Portfolio
In a powerful demonstration of their growing market influence, retail traders stepped in aggressively on Monday following Moody's credit downgrade late Friday afternoon, reversing what could have been a significant market decline. Individual investors purchased a net $4.1 billion in US stocks by 12:30 pm ET, setting a new record for that time of day. This surge in buying came after the S&P 500 fell nearly 1% on the Moody's news. By afternoon, the index had completely recovered, trading roughly flat—a testament to retail traders' impact as they comprised 36% of total trading volume. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – The buying was concentrated in retail favorites, with Tesla (NASDAQ:TSLA) and Palantir (NASDAQ:PLTR) recording inflows of $675 million and $439 million respectively. 'There is almost an unwavering commitment from retail to never make that mistake again,' noted Frank Monkam of Buffalo Bayou Commodities, referring to lessons learned from previous market downturns when selling during dips meant missing substantial recoveries. This event highlights several important trends: Individual investors are demonstrating remarkable commitment to equities, having learned that temporary downturns often represent buying opportunities. The swift response to the market decline shows retail investors executing the 'buy the dip' strategy with increasing confidence. While retail traders jumped into the market enthusiastically, institutional investors—traditionally considered 'smart money'—largely remained on the sidelines, representing a potential shift in market dynamics. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — The immediate impact was clear in the market's quick recovery, but longer-term implications could be significant: Stocks may experience heightened volatility as retail buying momentum counteracts negative news-driven selling. If economic indicators remain positive, with improvements in corporate and consumer balance sheets and falling inflation, institutional investors may return to the market, potentially fueling a stronger bull run. Most importantly, this event provides further evidence that retail participation is increasingly important in defining market resilience and recovery an individual investor, consider: Market reactions create opportunities: Major news events can trigger institutional selling that creates temporary buying opportunities. Collective retail power matters: The combined actions of retail investors can now meaningfully impact market direction. Strategic patience pays off: Viewing market dips as potential buying opportunities rather than reasons to panic may benefit long-term returns. Risk management remains essential: While 'buying the dip' worked in this instance, maintain appropriate diversification and risk management for your personal financial situation. As retail participation continues to reshape market dynamics, stay attentive to both the opportunities and risks in this evolving landscape. Read Next: Nancy Pelosi Invested $5 Million In An AI Company Last Year — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? TESLA (TSLA): Free Stock Analysis Report PALANTIR TECHNOLOGIES (PLTR): Free Stock Analysis Report This article Record $4.1 Billion Retail Buying Spree: What This Market Recovery Means For Your Portfolio originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
