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Retailtraders

Institutional and Retail Traders: Where the Difference LiesInstitutional and Retail Traders: Where the Difference Lies There are many players in the financial markets who can cause changes in trend direction, but let’s focus on institutional and retail traders. This FXOpen article compares retail vs institutional trading. You’ll learn about the characteristics of these types of traders, how they affect the markets, as well as the differences and similarities between them. What Is a Retail Trader? Let’s start with a retail trader definition. Retail traders refer to individual traders or small investors who participate in trading for speculative purposes. They typically trade with smaller capital and have fewer resources and less access to information than institutional traders. Retail traders often use leverage, which allows them to control larger positions with a smaller amount of capital. Leverage may increase potential returns, but it also escalates the exposure to substantial losses. The collective impact of retail trading has grown significantly in recent years, shaping market dynamics. The rise of online platforms has democratised financial markets, allowing retail traders to participate more actively. Their collective actions can amplify market trends and contribute to increased market volatility. How Do Retail Traders Trade? Retail traders often engage in day, swing, and news trading. They usually rely on online resources for self-education. They may attend educational courses and use the services of mentors. They may use technical analysis, social media discussions, or market sentiment analysis to inform their decisions. The collective power of retail trader communities, fuelled by social media discussions, can impact asset prices. The “Reddit effect” exemplifies how retail trading, through online forums, can challenge traditional market dynamics. What Is an Institutional Trader? What is institutional trading? Let’s first take a look at the institutional market definition. In the context of trading, the institutional market refers to the segment of the overall market where institutions and corporations manage their assets. Institutional traders buy and sell different financial instruments for the accounts they manage on behalf of others, and they handle large pools of capital. Therefore, they can influence market trends and liquidity. Their collective actions may lead to market-wide shifts, affecting prices and levels of volatility. Examples include hedge funds, mutual funds, investment banks, endowment funds, pension funds, and insurance companies. They have different goals, for example, hedge funds pursue absolute returns, and investment banks engage in market-making and proprietary trading. How Do Institutional Traders Trade? Institutional trading is characterised by its scale and impact. By handling significant volumes of capital, they take advantage of access to privileged information and influence market movements. For example, in institutional forex trading, central banks have the greatest price impact in the spot FX market, followed by hedge funds and mutual funds, while regular traders have much less influence on dealer pricing. Institutions commonly employ sophisticated strategies, such as quantitative trading and algorithmic trading. Their strategies often involve in-depth market analysis and the use of advanced instruments. Retail Trader vs Institutional Trader: Key Differences The primary differences between institutional and retail traders lie in factors such as capital, risk tolerance, and time horizons. These and other aspects are collected in this table: Aspect - Retail - Institutional - Capital - Limited capital - More capital-rich - Price Influence - Limited influence - More significant influence - Knowledge - Self-taught, usually from internet resources - Educated in finance or economics from college - Trading focus - Technical systems, price patterns, indicators - Fundamentals and trading psychology - Account - Personal accounts - Accounts they oversee on behalf of a group or institution - Time of trading - A shorter time horizon - A longer time horizon - Risk tolerance - Disciplined risk management, a lower risk tolerance - A higher risk tolerance, a focus on growth - Market Access - Retail and online brokerages with standard trading instruments - More difficult instruments, including swaps These differences profoundly impact trading strategies. Institutions can afford more complex and resource-intensive strategies, while retail traders may focus on simpler approaches. Time sensitivity, risk aversion, and regulatory constraints further differentiate their decision-making processes. Similarities and Overlaps While institutional and retail traders differ in many aspects, there are areas where their trading strategies may converge. Both groups may use similar trading tools and strategies, for instance, technical analysis, fundamental analysis, and algorithmic trading. The influence of technology has also contributed to blurring the lines between these trading types. Retail traders can now access sophisticated tools, while institutions may adopt more agile and cost-effective technologies. You may trade over 600 assets at the TickTrader trading platform using modern instruments for market analysis. Final Thoughts Institutional and retail traders play distinct but significant roles in the financial markets. While institutions have advantages such as access to more financial instruments and extensive resources, retail traders have the flexibility and freedom in trading decisions. The convergence of strategies and the evolving influence of technology indicate that the landscape will continue to shift, creating new opportunities and challenges for traders across the spectrum. If you want to trade on various markets with tight spreads and low commissions, you can open an FXOpen account. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Traders' Inverse Relationship with Breakouts⚡Retail traders often find themselves entangled in false breakouts or breakdowns. However, it's important to recognize that taking advantage of breakout opportunities isn't inherently flawed. The key lies in being mindful of the associated risks and never trading beyond what is considered an acceptable level of risk. By doing so, traders can protect themselves from unnecessary losses and navigate the market more wisely. ⚡Another crucial aspect of successful trading is planning for potential failures. While the solution seems simple – cutting losses and exiting the trade – it's essential to define what constitutes failure beforehand. Identifying these conditions before entering a trade allows traders to establish clear criteria for when it's time to step back and avoid further losses. ⚡To increase their chances of success with breakout trades, traders can consider adopting a strategy of trading pullbacks after a breakout has occurred. Typically, stocks pull back to retest their breakout levels, presenting attractive trading opportunities. While this approach can mitigate some failures, it's important to acknowledge that no trading strategy is foolproof. There may be instances where traders miss out on certain opportunities due to a lack of pullbacks, leading to feelings of "Fear of Missing Out" (FOMO). Remember, trading involves inherent uncertainties, and no strategy guarantees a 100% success rate. ⚡Lastly, traders should keep in mind that support levels offer potential buying opportunities, while resistance levels indicate potential selling opportunities. Being attentive to these key levels can assist traders in making informed decisions and improving their overall trading performance. Regards Do hit boost 🚀 for motivation.
NSE:RELIANCEEducation
by Bravetotrade
2
History: 17th Century to 21st Century: Retail Investors.Retail trading is the practice of individual investors using their own funds and accounts to purchase and sell financial instruments such as stocks, bonds, currencies, commodities, and derivatives. Retail traders are frequently referred to as DIY investors or self-directed investors. They are different from institutional traders, who work for major institutions like banks, hedge funds, pension funds, and mutual funds and execute trades on their behalf. The development of stock markets in the 17th and 18th centuries can be linked to the history of retail trading. In Amsterdam, the first stock exchange opened its doors in 1602, where Dutch East India Company shares were traded. At first, the market was only open to wealthy merchants and nobles since they had access to brokers and agents who served as middlemen between buyers and sellers. However, more people from various socioeconomic groups and backgrounds started to participate in the trading activity as the market expanded and became more accessible. Actual ledger from the first public IPO, The VOC charter, the organization's founding document from March 20, 1602, had made mention of the IPO. Article 10 said that "all the inhabitants of these lands may purchase shares in this Company." There was no minimum or maximum investment amount; subscribers could choose their own amount. Posters announcing the IPO would be placed up, according to the article that followed. The South Sea Bubble in 1720, when a speculative frenzy over the shares of the South Sea Company drew thousands of investors from all walks of life, was one of the earliest instances of retail trading. Many people purchased the shares in the hopes of becoming rich by taking out loans or selling their belongings. However, the company's failure to keep its promises caused the share price to crash, and the bubble to burst. Many small-scale retailers lost their savings and filed for bankruptcy. The Wall Street Crash of 1929, which signaled the end of the Roaring Twenties and the start of the Great Depression, is another significant incident in the history of retail trading. When investors recognized the stock market was inflated and unsustainable, a wave of panic selling rushed through the New York Stock Exchange, setting off the crash. Many retail investors who had used borrowed funds to buy stocks on margin were unable to fulfill margin calls and were forced to liquidate their investments at a loss. Millions of people worldwide were impacted by the crash, which destroyed billions of dollars' worth of wealth. The environment of retail trading has changed as a result of technological and regulatory advancement in the 20th and 21st centuries. Retail traders now have more affordable and convenient ways to enter the markets and carry out their trades thanks to the development of electronic trading platforms, online brokers, discount brokers, and robo-advisors. The number of alternatives and techniques available to individual traders has increased with the advent of new financial instruments including exchange-traded funds (ETFs), options, futures, contracts for difference (CFDs), and cryptocurrencies. To safeguard retail traders from fraud, manipulation, and abuse by market participants, laws and regulations like the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisers Act of 1940, and the Dodd-Frank Act of 2010 were passed. Some of the most influential figures in retail trading history include: - Jesse Livermore: Known as the "Great Bear of Wall Street" and the "Boy Plunger," Livermore was a renowned trader who amassed and forfeited a number of fortunes over his career. He was renowned for his insightful reading of market psychology and trends as well as his audacious bets against the market. He participated in both the Wall Street Crash of 1929 and the Panic of 1907, making millions by shorting stocks during each event. Reminiscences of a Stock Operator, a famous trading book he also penned, is still read by many traders today. -The "father of value investing," Benjamin Graham : , was a pioneer in fundamental analysis and security selection. Based on an analysis of an undervalued stock's intrinsic value, earnings potential, and margin of safety, he devised a methodology. In addition, he coached a number of great investors, including Warren Buffett, who is recognized as one of his most well-known pupils. He also taught at Columbia Business School. - George Soros: One of the most successful hedge fund managers and currency speculators in history. Soros is known as "the man who broke the Bank of England." His prediction that the British pound would have to devalue or leave the European Exchange Rate Mechanism (ERM) in 1992 is what made him most famous. From this trade, he allegedly generated over $1 billion in profit while also sparking a financial crisis in Britain. - Peter Lynch: Considered to be one of the best mutual fund managers of all time, Lynch oversaw the Fidelity Magellan Fund from 1977 to 1990, with an average annual return of 29%. He adhered to the straightforward maxim, "Invest in what you know," which meant that he sought out businesses that he was familiar with and that had a promising future. A number of his best-selling books on investing, including "One Up on Wall Street" and "Beating the Street," were also written by him. - Kathy Lien: Lien, a former chief strategist at FXCM and BK Asset Management, is regarded as one of the world's foremost authorities on currency trading. She frequently contributes commentary to media sites like Reuters, CNBC, and Bloomberg. She has authored a number of books on forex trading, including "Day Trading and Swing Trading the Currency Market" and "The Little Book of Currency Trading". Any more. In closing, Retail trading has evolved from a privilege reserved for the wealthy to a widely accessible activity for individuals from all walks of life. From the early days of stock markets to the modern era of electronic trading platforms, technology and regulation have played a pivotal role in shaping the landscape of retail trading. Influential figures like Jesse Livermore, Benjamin Graham, George Soros, Peter Lynch, and Kathy Lien have left their mark on the industry, each with their unique approaches and contributions. While retail trading presents opportunities for individuals to grow their wealth, it is essential to recognize the risks involved. The lessons learned from past episodes, such as the South Sea Bubble and the Wall Street Crash, remind us of the importance of informed decision-making and prudent investing. As we look towards the future, it is likely that the landscape of retail trading will continue to evolve, driven by advancements in technology, regulatory developments, and emerging financial instruments. However, the core principles of risk management, knowledge, and adaptability will remain crucial for retail traders to navigate the ever-changing markets successfully. In the related ideas you will see my post about the early days of TradingView and also the history of Japanese candlesticks
FX:ETHUSDEducation
by ChristopherDownie
3
What ChatGPT has to say about Retail vs Professional Indicators?When it comes to trading, novice traders may be tempted to rely solely on retail trading indicators such as RSI, MACD, Stochastic RSI, Bollinger Band, and ADX. However, relying on these indicators can lead to traders losing money in the long run. One of the main problems with retail indicators is that they tend to generate false signals, which can lead to traders entering and exiting trades at the wrong time. Retail indicators are based on historical price data and do not take into account other factors that can affect market movements, such as news events, economic data, or geopolitical developments. In contrast, professional trading indicators such as market internals, volume profile, market profile, open interest, and volume delta are essential for traders who want to stay profitable in the long run. These indicators provide a deeper understanding of market conditions, which allows traders to make more informed trading decisions. Market internals can provide insights into the underlying market sentiment and identify potential changes in trend. For example, the NYSE Tick Index measures the number of stocks on the New York Stock Exchange that are trading on an uptick minus the number of stocks that are trading on a downtick. A high tick reading can signal bullish market sentiment, while a low tick reading can signal bearish market sentiment. Volume profile, market profile, and open interest can help traders identify support and resistance levels, potential breakout points, and market structure, which can improve the accuracy of their trading decisions. For example, volume profile analysis can reveal where the most significant buying and selling activity is happening, which can help traders identify potential turning points in the market. Market profile analysis can reveal the market's value area, which is the price range where the majority of the trading activity has occurred. This information can help traders identify potential breakout points or reversal areas. Volume delta can help traders identify market imbalances and potential trend changes. For example, if the price is going up, but the volume delta is negative, it can indicate that selling pressure is starting to build, which could lead to a potential reversal. Professional traders also tend to use more advanced techniques, such as order flow analysis and footprint charts, which allow them to see the actual orders being executed in the market. This provides a more accurate view of market conditions and can help traders identify potential trading opportunities. For example, order flow analysis can help traders identify potential order imbalances and see where the big players are positioning themselves in the market. Understanding the difference between lagging and leading indicators is crucial for traders who want to stay ahead of the market. While lagging indicators may provide some insights into past market conditions, they are not sufficient for making profitable trading decisions. Traders must learn to use leading indicators, such as professional trading indicators and advanced techniques, to gain a deeper understanding of market conditions and make more informed trading decisions. In conclusion, relying solely on retail trading indicators can lead to traders losing money in the long run. Professional trading indicators, such as market internals, volume profile, market profile, open interest, and volume delta, provide a more accurate view of market conditions, which allows traders to make more informed trading decisions. Advanced techniques, such as order flow analysis and footprint charts, can help traders identify potential trading opportunities and gain a competitive edge in the ever-changing market.
NASDAQ:TSLAEducation
by PtGambler
Patterns of possible market correction or reversal 😎Trend reversal or correction chart patterns announce a reversal of the current trend on the observed chart. The output of the figure is made, theoretically, in the opposite direction to the movement that precedes the formation of the pattern. In an uptrend, a reversal pattern indicates a bearish move. On the contrary, in a downtrend, it announces an upward movement. It works in all temporalities but, the longer the temporality of the candles, the better the pattern will do and the more effective
Editors' picks
BITFINEX:BTCUSDEducation
by Ed_Ale
59
Forex retail traders in a nutshell99% of retail FX traders are scalpers or day gamblers or "swing" traders. According to a paper on the BOJ website I'll link below, in 2015 a mindblowing 57% of retail clients were "scalpers". 86% were either scalpers (0 to 1 hour) or day gamblers (1 hour to 1 day). They excluded those with positions held over 1 month, 1 week to 1 month was only about 5%, much much smaller than all the day gambling. "Share of accounts by investment time horizon" So it's not 86% of trades it's really 86% of accounts. For something very niche that no one does. www.boj.or.jp Can't blame the FX brokers for giving their clients, which are nearly all gamblers, what they want. These gamblers looking for excitation and with get rich quick dreams. Success rate of 0% not even 1% not sure what's going on up there. They're not even meant for this business at all. Becoming a trader when you have risk & loss aversion facepalm. "It's ok I can work on my flaws and improve" It is like if being an exterminator would pay a whole lot and so people with a phobia, terrified of rats would start getting into the business "Yes I'm scared to death of rats but I can make it work, for the money do not try to demoralize me". Or snakes & spiders maybe that's a better example, more people scared of wittle spiders. Clearly ridiculous. "My whole lower body is paralysed but that won't stop me from running a marathon (on my hands?) and winning!". Since Europe banned binary options (gosh what a scam), which was at least forcing day gamblers to have fixed losses, and with the exception of a few turbos, day gamblers really have their work cut out for them: At least with online casinos they have a fixed loss. Bet 1 coin lose 1 and that's it. But when they day gamble Forex there is not "hard loss" so they can keep letting the loss get bigger and bigger (due to loss aversion). Some regulators want to fight retail trading, and keep spreading FUD about it "99% lose". What do you expect? Doesn't mean it's soooo hard, 99% lose but do not forget 99% are drunk gamblers! Forex especially since the late 2000s and even more since 2013-2015 has very little trends, not much volatility, and not that much returns to offer, so it gets a more and more negative image but FX traders are allowed to look elsewhere when nothing happens. Maybe really dumb regulators are going to ban it the moment it turns and becomes very profitable again. They have all these mental flaws: - Risk Aversion - Loss Aversion - Caring what others do and think - Casino mentality - Emotional behavior in general (FOMO, regret, confirmation bias, denial, etc many more) About the casino mentality here are 2 articles about a recent comment by Charlie Munger: www.nasdaq.com www.investopedia.com These day gamblers, at least they should pick the correct tools where they might have a chance. The best one has to be the DAX (the Dow Jones might come close too): Pros: - Very small costs (house edge is the smallest) - Lots of activity while it is open for 8 hours - I think about 1/5 days are good trend days - 90% of days have the top or bottom of the day in the first 90 minutes I think, or something like that - There are other cool stats but I don't really remember - AND many other day gamblers also bet on it! The money gamblers hope to win has to come from somewhere, well here it comes from other day gamblers. So I'm guessing all the day gamblers just do the same thing? Buy the trend when there may be one, and what separates the winners from the losers is the ones with the biggest... personalities hold their winners and have what it takes to exit losers fast... And that's it... Zero intelligence... I do not know or understand what gets the vast majority into this whole super short term game, broker propaganda? That's just how gambling mentality works? 99% can't just all be gamblers? Did people lie to them and tell them this is how you are supposed to trade? Why did I never hear about this lie myself? Does it come from what they saw in some movies and tv? (I never watch tv).
XETR:DAXEducation
by MrRenev
1
Perseverance - this story is nutsTrading is just one of the many ' hobbies ' i have or had, another one is picking berries and nuts. Now being Autumn is/was busy season, everywhere you looked, nuts. Hazelnuts, Walnuts, Chestnuts, NUTS. On bushes and trees, in the fields, the forest, on the street, in the houses .. even most of my neighbors are nuts (err .. different story .. yet VERY much related to why I went into trading in the first .. and second place). Even though my mother already liked, and tried to introduce us to, what nature has to offer for free .. being children .. we didn't pay attention nor cared all that much for that. Many years ago, for what ever reason at that time, i started to notice just the vast amount of hazel- and walnuts in our area .. and started picking them. As years passed by I didn't just randomly pick them, i started planning when, how and where to go about it. While keeping my game up, readjusting my 'strategies' I couldn't help but notice how others started to follow my lead (for some reason people here could not be bothered with it until they noticed me doing it) and tried to emulate me (yes I am fully aware of just how narcissistic this may sound .. don't care, people close to me know this to be true). They didn't have my ' plans ' so they just ' went about it ', greedy as they are they started jerking on the branches, ripping of leaves and unripe fruits and nuts. Nature has everything laid out in nicely recognizable patterns, structured events, cycles. There was this guy named Ralph, there wasn't so much for market as there is today, but much like I started noticing the nuts on the street, Ralph noticed reoccurring patterns, which ultimately climaxed into an abysmal crash, shortly after that he formulated his set of rules, let's call them "The 12345abc rule" . After many years, the markets matured more and more, people noticed that those rules often fell short .. so what do you do then ? You blame your lack of knowing them ? You throw them out ? .. oh no .. you add more rules (more is always better!!11). Eventually that rule became known as the "12345-333-535-33333-abc-w-xyz-fibonacci" rule .. it still falls short .. but hey, the theory is solid !!1un, let's continue using it and just readjust the count if invalidated .. and readjust ..and readjust .. and readjust .. Look at any one of those Waver-charts, the vast majority keeps invalidating, there is no consistence, why then keep tearing of those leaves and branches ? There are plenty other, far simpler and more fruitful "magic ball methods" out there. Imo there are two categories of traders. You could divide by smart and dumb money .. not going there (Institutional vs Retail - they all point to the other with disgust screaming and arguing "The apple is ROUND" - "No you idiot, it's RED", not noticing they both want the same (make money trading) yet use totally different mind- and rule-sets).. fruitless, useless, redundant discussions .. (Like an elephant telling a bird to stop chirping and start trumpeting, while the bird wants him to chirp) No, the division is as follows: The ones that trade with the trend and the once that go against it . The ones that follow trend just do that, trending up ? go long , either in trend or in pullback : down ? short : vice-versa -- There is just one problem there, a trend is only a trend .. until it's not (and that is where the real trading 'fun' begins). With nut-hunting, you have to start before season starts, you can not know when the first ripe ones fall out of the trees and bushes, you continue until you no longer find any (or until you decide you have enough) (in trading this would mean: start buying before expected/estimated bottom and continue to sell after the expected/estimated top) The other category of traders, the ones that "go against trend" are the ones that try to predict the lows and highs in advance, trying to predict ' reversals ' (those categories partially overlap since buying a pullback temporarily would go against trend). Both parties will (usually)/(try to) use some sort of drawing (support, resistance) and sometimes other tools (indicators or fundamental market assessments) in hopes for the advantage. One could say that "smart money" consists for the most part (again, overlapping categories) of "trend traders" . The ones that are so overly greedy with idle hopes of getting the full "swing" are, of course, mostly "retailers" . .. one could also make a claim about the 'Contrarians' being a third group, they are counter to .. ehm .. yeah, in a market where everyone gets served/ has a part, what do you want to "counter" here, the 'herd' ? (Pareto distribution..)? So just like the other nuts going out to find people, the guys smashing trees, tearing leaves and breaking branches ended up with little or no usable nuts yet did a lot of work to get there .. and I got out every day just looking and observing .. and pulled the trigger at the right time (made a killing this year, ended up with more on that one day, than the combined season 'harvest' of any previous year). so you see .. perseverance is key .. stick with something .. get better at it, adjust, readjust
BITSTAMP:BTCUSDEducation
by Je_Buurman
1
Looking at NSE retail investors strategy🤓 If you are wondering what was public shareholders favorite stock in summer 2018, this is it: Obviously, what did you expect? 😆 Compared to the N50 which of course has crashed recently but apart from that in an uptrend: I will translate a story from punjabi (nah I'm jk it's in english) Buying aggressively a fast falling stock with lots of reports of fraud and 0 institutional interest. Maybe they can please insanity or several mental disability? At least alot of those that retail sold the most (not short, just abandonned) are down a ton, ALTHOUGHT it wouldn't surprise me that they started buying as the price fell a lot. We can look at a few other of retail favorite holdings nearly 2 years ago... Alot of big gains in the past and then a crash. Basically the stocks which are the very best to short. "Past performance is not indicative of future performance" is a sentence too complex to understand I guess. Imma start a fund, set alert on retail picks, go short, profit. Shorting stocks that are down 90% is probably one if the easiest ways to make money, probably the main issue is it does not scale obviously. K that's enough for today. I am trying to imagine someone trying to convince me to try and teach traders and like I'd owe him one so I'm imagining myself "umm ok so biggest tip emm don't be complete idiots". I don't understand how this can have kept going for a century or more. When did "retail investing" become a thing? In the 1920s? Ye and all the problems started to appear then... Hitler etc. No one cares about the history, bunch of brainlets. Huge interest in finding out what the best indicator is and how much a day trader can earn. If these idiots ever make money I'm jumping off a cliff. Retail investing was nearly non existant in 1600-1800 right? Goldman Sachs blames mom & pop investors for stock volatility (retail investing must be at ath by now) www.marketwatch.com I'll try posting about dumb money when I find data, I found robinhood users holdings and indian holdings, there must be more. South Korea were all in crypto, so they must be interesting. They're supposed to be the country with highest IQ, would be funny to see what crap they invest in. OOOOO It looks promising: www.businesstimes.com.sg www.straitstimes.com 😊
NSE:PCJEWELLEREducation
by MrRenev
9
A look at the 10 most owned stocks by robinhood users 😂"Countertrend trading" and "We are oversold" these sentences just sound so stupid, I have a hard time believing this is a thing. Here are a few of my finest comparisons: "I put a pillow on my face and practice suffocated breathing". "I compete in sprints with my legs tied together" Huh but why? "Well 2 legs have more power than 1 obviously duh silly" You keep losing! "YES BECAUSE THEY ALL CHEAT AND ALL KNOWING INSTITUTIONS MANIPULATE THE RACES!". "I put my hand on the stove and now I am overburned way more than I should be, I will therefore keep my hand on and put the second one, should heal anytime". "Counteroxygen breathing", "Countergravity jumping", "Counterheat cooking", "Countermudtorrent walking", "Counterultratide kayaking"... "Stop buying umbrellas during this rainy season you fools! Don't you see we are overbought?", "Go to the pump station and fill your full car tank so you can stay at home don't you see Oil is oversold?", "Stop buying & drinking water during this heat wave you fools don't you see we are overbought?", "Stop buying ventilators and masks in this respiratory disease season you fools don't you see we are overbought?", "Stop avoiding sky stations in the summer we are oversold", "Why am I sunbathing by -5°C? Well clearly you are a noob and didn't notice seaside resort are very oversold this winter!" It sounds so wrong xd So, what are retail investors holding? First of all Tesla is not in the top 3 anymore, they have fallen to only #19. You have heard the theory a million times, and here the practical side of things confirms it: they hold and average in losers, they close at breakeven or take profit very quickly, they avoid winners, they get excited and buy at the top when the price goes parabolic. Robinhood users have beautiful taste as you will see now. Now, the top 10: ACB was very oversold when wise & sophisticated investors took this opportunity. Aha! It got much cheaper, they can buy more now. They sure know how to smell a great deal. Buying a car manufacturer on a downtrend for years and year, with declining sales and many financial issues, at the bottom clearly about to collapse and capitulate, smart, very smart. Buy parabolically as the stock capitulates? Pure genius. RSI at 7.50 was below 20. Yes, in times of crisis companies with bad fundamentals and in a downtrend for 2 decades tend to do very well. Excellent perceptiveness by millenial retail investors. Putting money in companies losing money and ignoring productive companies sounds like a great way to make a country prosper. WallStreetBets legends have been spotted betting on another success story. How much lower can it go it's already down 97%. You don't loose if you don't sell. (Multi)National-Socialist Umbrella corps time is soon over, I knew it! I can't wait for the big tech bubble to deflate. *Kondratiev I... I don't know what to say... This is... They have the right to vote... I'm scared... That's some serious mental disability... Idk if I can laugh about it... Not going to bother commenting. Same as previous. I am thinking of shorting it but it's best if I stick to my own domain. Those investors stupidity is astonishing, I am not joking, I am shocked and even a bit worried. Here's the top 10. Hey, but what about highly performing stocks? Unsurprisingly most of the top perf stocks are those expected to be a major part of the next Kond. cycle, and are seen as very important at the moment (but at the same time poor countries with old drugs are doing better than rich countries so... we'll see). Quick check of a biotech company not in the "best performing" ones (which are mostly small ones) but a rather big name that is in the S&P500 (barely thought) and doign very well: That's really something. Can you imagine how bad the world would be if there were no professional investors? Or if idiots keep reproducing at the current rate and smart women keep "focussing on their careers". 200 investors. That's it. OrganiGram has 90 thousand (265M market cap versus 10B for BIO). They'd rather invest in 4000 other companies rather than this one. What about another top performer, Kodiak Sciences (2.25B mcap)? They're not making positive earnings yet, but this is a growth stock, and we all know robinbros don't look at that, and we know they don't hold for years or decades. RobinTrack is going to become my main indicator... There are no big tank storage companies in the US I'm sad I wanted to check that. I already know what the result would be thought. What about the FMCG sector? Doing very well in this period of course (especially in the toilet paper area) Delivery also doing good Let's look at another top performer, a small cap... I think that's enough, I made my point. I did not cherry pick the worse possible examples. These people are STUUUUUPID. They are way too stupid to be trading even simple instruments in a protected environement and with regulations to protect them. You can throw all the regulations you want, they will still be stupid and do dumb things. And they think they can get their foot into Oil futures & other complex products. Tough love: If you constantly fight the trend and let your losers run you are an idiot and you will lose everything. There is a reason why the best in the world keep repeating the same advice.
NASDAQ:TSLAEducation
by MrRenev
9