Every Day-Trader Dollar Is Worth Five in a New Theory on Stocks – Bloomberg
Day traders claiming bragging rights for this year’s $9 trillion U.S. equity rebound can find some supporting evidence in the latest research.
Even as retail trading has grown to
represent 20% of daily volume, Wall Street has struggled to figure out how much this modest-sized contingent actually influences prices. After all, the market is teeming with algorithmic funds, long-only managers and more.
But a fresh way to understand stock fluctuations via academics at Harvard University and the U…