Retail-investor quarterly trading trends

“Retail investing has become an increasingly important phenomenon across the global financial markets in recent times, as digital platforms have lowered barriers to entry. It is now easier than ever before for ordinary people to trade the markets and act on their own insights and analysis.

The meme-stock phenomenon of 2021 has shown that even the biggest and best-funded institutional investors need to keep themselves informed on trends and thinking among retail investors. Today, the world is in turmoil as the consequences of the war in Ukraine continue to unfold, the aftermath of the pandemic plays out and inflationary shocks strike economies around the world. Traders are changing their behaviour in response.

At Capital.com, we have an unrivalled database covering the behaviour of the world’s fastest-growing investor class.

This Capital Pulse quarterly report is based on proprietary data drawn from our sector-leading trading platform. I believe it offers a valuable resource for financial professionals, analysts, journalists and indeed anyone seeking an insight into what the trends are among our huge global community of retail investors.

The main theme emerging from the data this quarter has been a rise in the popularity of short positions among Capital.com traders. Most investors and traders are hardwired to "go long" when it comes to markets: buy first and look to sell hopefully higher and make a profit. Although retail traders have the ability to "short-sell" (taking profit from falling markets), historically it is not something that many have done. The sharp rise in clients short-selling over the current quarter demonstrates just how significant the drop in many markets has been, forcing many retail traders to change their mindset.

Readers who would like more information about Capital.com and our traders should visit our website’s Media Centre.”