Call it the year of the individual investor.
Lay investors continue to turn the financial markets upside down, building on their energetic entry into the arena over the past year. In the first half of 2021, according to estimates by JMP Securities, the new brokerage accounts opened by retail investors have already reached roughly the total number in 2020 and exceeded 10 million.
You have the stock quotes of GameStop Corp. companies. to AMC Entertainment Holdings Inc. – both are up more than 1,000% and 2,600% respectively this year. They have skyrocketed the cryptocurrency Dogecoin, which was originally created as a joke. And they have come together in bold forums to inflict punitive losses on institutional investors.
Here are four ways individual investors continue to shape every corner of the US market.
Your trading volume continues to grow.
For years, the trading activities of individual investors on Wall Street have drawn little attention. That started to change in 2019 when online brokers massively switched to commission-free trading. The Covid-19 pandemic further accelerated private interest in stocks over the past year, allowing those stuck at home to dabble in trading through historical market volatility.