Retail Trader Speculation Explained in One Minute - Meme Stocks, Meme Cryptocurrencies, etc.

Published: 26 January 2023
on channel: One Minute Economics
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This much is certain: after 2020, retail trader speculation became a massive phenomenon. From meme stocks to meme cryptocurrencies, more and more "average Joe" citizens started embracing speculation... oftentimes involving assets that are questionable at best, leverage or both.

But why is retail trader speculation running rampant?

Why is this phenomenon gaining traction at this point in time as opposed to let's say the fifties or sixties?

The answers to these two questions and many more should become obvious once we rid ourselves of "it's just plain old greed" stereotypes. Not necessarily because greed isn't a dominant variable but rather because the underlying causes of said greed makes today's situation quite nuanced.

Is retail trader speculation a good or bad thing?

Long-term speaking, in light of the fact that the average retail trader loses money, most likely the latter.

But this conclusion is of little use in the absence of the meaningful understanding of perhaps the elephant in the room in terms of causes: despair :(


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