The rise of the retail trader
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An interesting phenomenon is playing itself in markets this year.
As a trader the “Thundering Herd” is something you never want to stand in the way of.
But it’s very clear that balance of power has shifted from the advisor to the individual that has been empowered and to a certain extent weaponised by the ease of access to data.
These individuals are done with the omnipotence of Wall Street, feel the game is rigged against “main street”, are pushing back against the establishment and have mobilized as a really disruptive force in financial markets globally with a few high-profile casualties left in their wake.
As a general rule, they don’t trade on fundamentals and don’t care about traditional valuation techniques. They buy stuff they think is going up and sell stuff they think is going down. Simple as that..
It’s the rise of the retail trader and one of the largest brokers to be at the centre of the recent game stop story is IG, a global firm based in London that specializes in online derivatives trading, which has appointed Ndabezinhle Mkhize as an independent chairman of IG Markets South Africa.
Mkhize is the Chief Investment Officer at Eskom Pension and Provident Fund. Also an independent non-executive director of JSE-listed Fairvest Property Fund, where he serves as chairman of the Audit & Risk Committee. He is also chairman of the Asset Owners Forum South Africa.
Michael Avery spoke to Ndabe and Kevin Algeo, IG Group's CEO of APAC and Africa, about the rise of the retail trader.
As a trader the “Thundering Herd” is something you never want to stand in the way of.
But it’s very clear that balance of power has shifted from the advisor to the individual that has been empowered and to a certain extent weaponised by the ease of access to data.
These individuals are done with the omnipotence of Wall Street, feel the game is rigged against “main street”, are pushing back against the establishment and have mobilized as a really disruptive force in financial markets globally with a few high-profile casualties left in their wake.
As a general rule, they don’t trade on fundamentals and don’t care about traditional valuation techniques. They buy stuff they think is going up and sell stuff they think is going down. Simple as that..
It’s the rise of the retail trader and one of the largest brokers to be at the centre of the recent game stop story is IG, a global firm based in London that specializes in online derivatives trading, which has appointed Ndabezinhle Mkhize as an independent chairman of IG Markets South Africa.
Mkhize is the Chief Investment Officer at Eskom Pension and Provident Fund. Also an independent non-executive director of JSE-listed Fairvest Property Fund, where he serves as chairman of the Audit & Risk Committee. He is also chairman of the Asset Owners Forum South Africa.
Michael Avery spoke to Ndabe and Kevin Algeo, IG Group's CEO of APAC and Africa, about the rise of the retail trader.