A new generation of traders has caused unprecedented volatility in stocks they like, such as GameStop (GME). As reported by Market Watch, the flurry of activity caused many brokerages to fail,
Disruptions were reported at several major retail brokerages Wednesday morning, following the speculative surge of interest in companies including GameStop and AMC Entertainment , as well as a big drop in the major stock-market indexes including the S&P 500 . The website Down detector reported disruptions to TD Ameritrade, Robinhood, E-trade, Charles Schwab, Fidelity Investments, Interactive Brokers and Vanguard, as well as the Reddit message board that has triggered much of the activity.
Customers were able to buy puts on all equities and short the stock, buy the stock, and other operations. “Traders were able to trade the volatile markets we saw yesterday, on the LevelX app and on our Pro Trader platform,” said Christopher Infante, CEO of LevelX Capital LLC. “We have received a lot of new business from disgruntled traders looking for a broker who is up all the time, even when the market is volatile.”was up the entire time, received no downtime or temporary service issues.
Strangely, there was also a massive internet outage across the East Coast yesterday, as
In the case of other online brokerages, this seems to be, as these firms have struggled to provide necessary bandwidth for a growing customer base.
What’s clear is there is a macro demographic shift happening, a new generation of traders. They are making their investments in companies like Gamestop $GME as a protest ‘against WallStreet’ and they succeeded, for now. , Citron founder Andrew Left welcomed this new generation of traders, and explained them that 17 years ago, before Reddit, there was Citron.
Will the situation with GameStop bring attention to stock trading as a form of activism? Sustainable funds have used their dollars to further their causes for years, and it works. Sustainable funds invest in companies that adhere to certain environmental rules but make money at the same time.
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