Economic assessment of the activity of retail investors on the stock market

Abstract

The article examines the activity of a retail investor on the stock market. Issues of economic assessment of their activity and problems of increasing its effectiveness are studied. The dynamics of the share of retail investors in the total volume of trading in the stock market is analyzed. The key factors of growth of retail investors' activity in the stock market are studied. It was determined that the share of retail investors in the volume of trades on the stock market has almost doubled. The factors that caused such a powerful dynamic were analyzed. Two factors such as available investment opportunities and empowerment through information are discussed in detail. An economic assessment of the effectiveness of the activities of retail investors was carried out. The reasons for the negative results of their work on the stock market have been revealed. The importance of developing specific investment goals before starting investment activities on the stock market and adapting investment strategies to them is determined. It is suggested to use paper trading simulators that reproduce the real trading environment. It has been found to allow investors to make virtual trades and track their performance in real time. It is recommended to engage more comprehensive analytical and research platforms that provide tools for charting and price research. This has been proven to allow investors to more effectively analyze market trends, identify potential economic opportunities, and develop effective trading strategies. Possibilities of minimizing transaction costs through the use of ETFs-shares of investment funds, which are often traded on the stock exchange, are considered. As a result of the conducted research, the possibilities of further scientific research on this topic in the direction of using the latest financial programs based on artificial intelligence and comprehensive assessment of the interaction of various sectors of the stock market with their help were considered.