Yahoo Finance The advantage retail investors have over institutional
Institutional investors dominate the market. But there retail traders do have some advantages over the big players.
In the latest episode of Stocks in Translation, StockTwits Head of Market Research, Tom Bruni, highlights the growing influence of retail traders and how the rapid dissemination of information has fueled this shift. “Retail has gotten really good at playing games that Wall Street may not necessarily be involved in,” Bruni continued. "That's really where the community has found their niche, is really identifying opportunities that maybe the bigger institutions can't."
Listen to the full episode here, or wherever you get your podcasts.
For expert insight and the latest market action, click here to watch more Stocks in Translation.
This post was written by Neil Mulcahy.
Video Transcript
You, you said retailer, retail traders are a force to be reckoned with.
How often do they get it?
Right.
Um I mean, that's, that's a good question, right?
Like institutions, retail, they'll always get things right and wrong.
But what I will say is um retail has gotten really good at playing games that Wall Street may not necessarily be involved in.
And so we see a lot of participation around uh kind of under followed trends in the media, whether it be small and micro cap stocks, uh whether it be emerging themes.
Um And so I think that's really where the community has found their niche is identifying opportunities that maybe the bigger institutions can't.
Um Is this new like, is this something that just kind of came out of the pandemic?
Has this building had been building for decades?
Uh It seems to me, I've been watching markets for over 20 years now pretty closely that things have changed.
Yeah, I mean, things started, I mean, look back 25 years ago during the.com bubble, there were message boards, there were, you know, ways to communicate around uh what's happening in the stock market.
It was at the center of that.
Um So I think the difference is the speed at which this has developed over the last decade, we have commission free trading, you can trade from your phone.
Um You can send messages in real time companies are using kind of these platforms to communicate with their investors.
And so just the speed and the accessibility of all these tools and um you know, overall exposure to this information is really sped things up and made it a lot more sticky.
