According to a survey by data company Cardify, game stations(GameStop) 50 per cent of share buyers are retail investors who trade for the first time.
Shares such as PlayStation and AMC cinema soared in late January, driven by retail investors active on Reddit online forums, with some investors publicly calling for higher share prices of certain companies to trigger hedge funds shorting them to stop losses, sparking a "retail vs. Wall Street" frenzy.
Cardify tracks consumer spending data on debit and credit cards. CEO Derrick Fung, the company, said that after conducting "quantitative and qualitative surveys", "We learned that 50 per cent of investors who deposited money into trading software Robinhood and bought game post shares were novice and traded for the first time." Most importantly, 50 per cent of traders have made the biggest day trading in their investment careers in the past four weeks. "
Fung also said: "60% of consumers who use Robinhood still like the platform. The study found that deposits in stock accounts did decline slightly, about 16%. When Robinhood decided to suspend trading game stations and AMC cinemas, only 1/6 of users decided to close their accounts on the platform. "
Fung believes that this will be a sign of new trends for retail investors. Last year, Robinhood opened more new accounts in the United States than any other broker, according to the data.