Day Trader Army Loses All the Money It Made in Meme-Stock Era
- ‘Diamond hands’ mentality fuels dip buying and now faces test
- Capitulation from the crowd may help signal a market bottom
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It’s ending as fast as it began for retail day traders, whose crowd-sourced daring was the pre-eminent story of pandemic equities.
Nursing losses in 2022 that are worse than the rest of the market’s, amateur investors who jumped in when the lockdown began have now given back all of their once-prodigious gains, according to an estimate by Morgan Stanley. The calculation is based on trades placed by new entrants since the start of 2020 and uses exchange and public price-feed data to tally overall profits and losses.