BBSA
Honorary Master
- Joined
- Jul 11, 2005
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In a normal year, sports fans would be gearing up for the NBA playoffs at the end of May. This spring, with no live competition, some are searching for thrills in the stock market.
U.S. brokerage firms have seen a flood of retail trading activity in recent months. Analysts say a lack of pro sports-betting and casinos, more time to watch the markets, as well as stimulus checks have added to the day-trading trend during the pandemic.
"It's the combination of no sports — so you can't bet on that — and you can't go outside. There's a lot of people sitting in front of their computers who ordinarily can't be day trading," Portnoy told CNBC in a phone interview. "For a gambler, investing has a ton of similarities."
Sports gamblers looking for a thrill could be in for a rude awakening: Investing is not gambling. Historically, day traders tend to lose money. Even most professional investors can't beat a simple low-cost index fund tracking the market over time.
The most popular stocks among retail investors over the past few months, aside from Disney, have been volatile low-priced names – "the sort of names that can move +10% in a few days," according to research firm DataTrek.
www.cnbc.com
U.S. brokerage firms have seen a flood of retail trading activity in recent months. Analysts say a lack of pro sports-betting and casinos, more time to watch the markets, as well as stimulus checks have added to the day-trading trend during the pandemic.
"It's the combination of no sports — so you can't bet on that — and you can't go outside. There's a lot of people sitting in front of their computers who ordinarily can't be day trading," Portnoy told CNBC in a phone interview. "For a gambler, investing has a ton of similarities."
Sports gamblers looking for a thrill could be in for a rude awakening: Investing is not gambling. Historically, day traders tend to lose money. Even most professional investors can't beat a simple low-cost index fund tracking the market over time.
The most popular stocks among retail investors over the past few months, aside from Disney, have been volatile low-priced names – "the sort of names that can move +10% in a few days," according to research firm DataTrek.
Gamblers pivot to stock trading during lockdowns - Barstool's Portnoy revives old E-Trade account
Some people are dipping into stocks as an outlet for competition and betting as professional sports are on hold due to Covid-19.
