Select Page

Where’s Retail? Individual Investors Pouring Billions of Dollars in Stocks But The Tide is Now Turning

Where’s Retail? Individual Investors Pouring Billions of Dollars in Stocks But The Tide is Now Turning
This article is added for educational purpose only. All credit goes to the respected author of this article. All In One Crypto App do not hold any liabilities of this article. You can get the source link at the end of the article content.

Volume on cryptocurrency exchanges is drying fast, and gas fees on the Ethereum Network is staying at a single digit.

Mere $35 billion is currently recorded in exchange volume, down from nearly $90 billion in late May, representing a fall of more than 60%. The same is the case for Google Search volumes for crypto assets, NFTs, and centralized and decentralized exchanges. New Twitter followers in space have also gone down, much like the ranking of crypto apps on the App store.

The crypto market may have seen an exodus of retail, but the stock market is seeing an increased stream of retailers.

Retail has poured in a net $140.57 billion into the US market this year, up 33% during the same period a year ago and over six times the amount invested by them in 2019, according to data from Vanda Research.

Inflows surged again in recent weeks, but the tide is now turning, having fallen 17% over the past week.

“This is changing the way that one potentially trades these spaces—gone are the days when you can buy and hold a small-cap name and hope it yields 50% over time. It almost does that now in a matter of days,” said Viraj Patel, global macro strategist for Vanda Research.

Growing Share

The flood of new retail traders that started last year during the coronavirus pandemic has now turned into a leading indicator.

According to Goldman’s Derivatives Research group, retail trading activity is an indication of a large number of traders “paying attention” to a stock.

Because retail is not short-sellers and chooses between “buying” or “not-buying” the stock, it results in temporary net-buying flow from retail investors, pushing the stock up temporarily.

This volatility then attracts the institutional investors’ attention, who then uses their understanding of options market positioning, delta hedging requirements of market makers, and fundamental valuation to position for outsized profits.

And at some point, retail traders become a smaller percentage of overall volume resulting in a significant drop in retail trading as a percentage of total volume in the days ahead of the ultimate peak and subsequent decline.

A WSJ report published Friday shared that new brokerage accounts opened by individual investors in the first half of 2021 have already roughly matched the total created throughout 2020.

These new individual brokerage accounts have hit more than 10 million, according to estimates from JMP Securities.

Individual investors’ share of US equities trading volume, which surged to 20% last year, roughly double the figure from a decade before, has also increased to 26%, according to data from Larry Tabb, head of market-structure research at Bloomberg Intelligence.

Some online brokerages account for a sizable chunk of this, with Robinhood Markets accounting for 4% and E*Trade estimated to be 2.4%.

While the traditional market is seeing increased participation from retail, the crypto market is getting institutionalized. However, it is possible this is a rotation of profits from crypto into stocks which may get rotated back into crypto after some time. But that’s to be seen, for now, the market is devoid of much activity, and prices are trading sideways in a “crab market.”

The post Where’s Retail? Individual Investors Pouring Billions of Dollars in Stocks But The Tide is Now Turning first appeared on BitcoinExchangeGuide.


Source: BitcoinExchangeGuide


All In One Crypto App presents a unique dynamic crypto course that allows you to become a profitable and successful trader. Download Now

Don't forget to share your review/suggestions for the android app.

All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own here


Select a Sub Category


All In One Crypto App

Made $234 profit with Free Signals from $50

This is the best useful app on my phone. Started trading with $50 and in 5 weeks I was up to $234 just with the free signals. I will recommend it to any new person that wants to try trading crypto. Link to Review

Asoluka Chimdindu

Free User
All In One Crypto App

Good Support

This app is one of the best for crypto currency trading signal for experts and beginal with free and premier with auto follow trading bot all the signal is excellent with accurate technical analysis and fundamental I really like the way they guide and support. Link to Review

olaplus olaplus

Premium User
All In One Crypto App

Accurate Trading Signals

I was premium member of this channel back in 2018 when there was no app. Thr signals were too good, more than 90% accuracy. Now with this app and newly introduced auto trading bot, it will be awesome. Too the moon. Link to Review

Yogesh Patil

Premium member
All In One Crypto App

Awesome and Accurate Signals

Very glad to use this app. The crypto signals was awesome and accurate with detailed explanation and visual information. The admin also helpful and nice. Link to Review

soon cheong

Free User
All In One Crypto App

User Friendly App

Signals are great. I love it. App also friendly to use… Nice job guys Link to Review

Olawunmi Dilureni

Premium Subscriber