- A user needs to be more adept when it comes to trading.
- Not knowing where to start and hesitating to commit are two of the most common challenges for new traders.
- Stonk bridges the knowledge gap between professional and retail traders through a community of smart investors who want to trade better.
Platforms like Robinhood or Webull revolutionized the trading space by making commission-free trading available for retail investors. Since then, the total equities trading volume grew from 10% to 25%, with over 100 million individual accounts of retail investors registered at the six biggest brokerage platforms.
Beginning to invest has become as easy as opening a credit card, but such a low entry barrier has its own cost: many people without sufficient financial knowledge start trading and end up taking huge monetary losses, which takes a serious toll on their well-being and financial status. Research shows that the majority of traders don’t get professional training and make an average of one trade per month, with as many as 87% of individual investors reporting losing money in the 2022 stock market dip.
Challenges Beginner Investors Face
For beginner investors, trading is an unknown space. While trading data is public by law, you need to have advanced data skills to analyze information and put it to real use; even professional traders do not carry out this practice alone. Accessing data is not a problem; the real issue is a lack of knowledge and financial literacy among retail traders.
Beginner investors face two main challenges: not knowing where to start and hesitating to commit to trading straight away. First, retail traders lack knowledge, turning to YouTube and other online search engines for help. Yet, the information they find is often outdated and not in sync with the market. To succeed, retail traders need current ideas from professional investors and data which is tailored to the market daily. Second, beginner investors are cautious and hesitate between a variety of trading platforms available on the market. Choosing the right one can make or break their desire to trade in the future.
How Stonk Helps Retail Investors Trade Better
Stonk, an innovative brokerage platform for retail traders which combines a social media element with advanced trading tools, helps beginner investors overcome these challenges and increase their financial literacy. The platform focuses on teaching people without financial backgrounds how to trade professionally.
Upon joining, Stonk users get free access to an advanced trading system with features like option flow (whale alert), insider trades alert, dark pool prints alert, trading live streams, and exclusive content by subscription. They can also get in touch with their peers and exchange investment ideas tailored to the current market situation to learn more vividly. To help traders make the best use of data, Stonk visualizes trading information and shares interpretations from professional traders. With Stonk, users can also try out the platform’s trading simulator to make an informed decision about whether they should invest or not later on.
Stonk bridges the knowledge gap between professional and retail traders by building a community of smart investors who want to trade better. With fun content shared on social media and meaningful knowledge exchanged in the chats, retail traders can enter a new space where insights are shared with little restrictions.
Trading is a lifetime learning curve wherein you learn to manage financial assets for you and generations to come. Over the years, people’s behavior and attitude toward trading evolved dramatically: 10 years ago, university graduates didn’t know anything about trading, whereas students now start investing early on. Such a shift proves once and for all that trading is no longer happening only on Wall Street. Everybody should have the power to trade and access better financial education.