But traders like Ms. Crum, who lives in Sunrise Beach, Missouri, are making a serious effort to get it right.
Each evening, she meticulously compiles a list of actions she watches using different metrics. One of them, an online tool called a volume scanner, filters out stocks that are trading more or less than usual, which she says can put her on a good bet. And she tries to mitigate her risk: Ms. Crum uses stop-loss orders, to sell a stock when it hits a certain price, and limit orders, which allow investors to set more specific instructions.
Like many other young marketers, she enjoys sharing what she learns – usually in TikTok videos to her 163,000 followers. Ms Crum posted one on candlestick charts, which show the price range of a holding on a given day. In another, she explained how to use the Relative Strength Index, or RSI, which measures price changes over time and can indicate when a stock might be oversold or overbought.
“I started out with swing trades, an old reliable way of trading,” Ms. Crum said, adding that she will be day trading if she spots something that appears to be “an obvious winner”.
Like other young investors, she is riding a wave that would not be possible without the widespread adoption of commission-free trading at the end of 2019, which has opened the doors for those without deep pockets. Retail now accounts for around 22% of all transaction volume, according to Piper Sandler, a financial services company, up from 13% a year ago, when overall volume was also lower.
“There are days when I do 100 or more trades,” said Dan Knight, 26, a day trader who co-hosts a stock market podcast. “I could never have traded with a $ 7 commission fee.”
Mr. Knight’s podcast, “PGIR,” recently was among the top 50 commercial shows on Apple podcasts in the United States and ranked among the best investment shows in early February, according to Chartable. Irreverent and strewn with profanity, each episode begins with a voiceover from rapper Flavor Flav, and Mr. Knight is introduced as Deity of Dips, while his co-host, Mitch Hennessey, stars Hugh Henne – a snap. look at his grandfather’s first name and, in a playful way, Hugh Hefner.