Young retail investors have emerged to be a driving force for the stock market. They have just stepped into the realms of investing and are trying to set their foot. The latest trend that is doing the rounds is stock trading for retail investors. It seems to be a lucrative idea for coming out of the clutches of uncertain market conditions. Investors have gained a deep understanding of how the market works. Thus, their behavioral biases have shifted more towards stock trading during the pandemic. However, that’s just one reason but there are a lot more rationales.
Why are we witnessing an upsurge in stock trading?
There have been skyrocketing numbers of generation investors who have joined the investing streak amidst Covid-19. These investors have been known to create a new sphere of investors. Generation investors are trying to hold their grip over stock markets and attain their financial goals. The pandemic inciting spurt in numbers is due to many factors.
No geographical barriers to entry
Due to the lack of entry barriers in the world of stock trading, the number of investors has been increasing. The process of opening a trading account is pretty easy to start your investing journey. On top of this, the inclining trends toward widespread digitalization have contributed to increased retail trading.
Digital investing platforms have curbed the geographical restrictions for financial institutions. Thus, greater access to inter-country stock market access has led to this investing surge. Moreover, the government’s financial inclusion objective has also contributed to steering the retail trading industry.
Passive income is a must
Who would want to say no to a secondary source of income? No one especially when we are in the middle of unprecedented havoc. This ambiguity of jobs and life opened the prospects of retail trading. Most of the businesses were undergoing a massive setback and eventually shut their operations.
Employees in corporate jobs were witnessing huge layoffs and company downsizing. Thus, for securing their recurring earnings, retail trading seemed like a fruitful avenue of making money. Obtaining an income source that will remain unaffected by the people’s employment status or job situation.
Unsatisfactory returns from previous investments
Cryptocurrency investments have climbed as well, thus a tracking app works wonders to outdo its volatility. Using a stock and crypto tracker app has turned out to be a great support for retail investors. These applications have successfully navigated their investing decisions.
If your portfolio was struggling in the past then a shift to stock trading is understandable. This is where the stock and crypto tracker app assists in helping you create a desirable portfolio. Moreover, investors get useful insights through the monitoring of this app.
The rising retail activity is a by-product of the storm overshadowing the market’s Bull Run and stimulus measures. Furthermore, the awareness of stock trading options has led to the deep penetration of retail investors in the market.
People’s growing knowledge about different asset classes and the returns they generate have allured them to invest. People have begun to realize the value of investing in a person’s life and wealth creation. The concept of money-losing its value due to inflation is not ignored by people anymore. Thus, retail investing has acted as a gateway to retail trading.