Trading Stock Tips on TikTok, Newbies Are Deeply Invested in Learning
But traders like Ms. Crum, who lives in Sunrise Beach, Missouri, are making serious efforts to get it right.
Each night, she meticulously compiles a list of the stocks that she is observing with various measures. One of them, an online tool called Volume Scanner, filters out stocks that are trading more or less than usual, which they think can result in 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 limits orders that allow investors to give more specific instructions.
Like many other young traders, she likes to share what she has learned to her 163,000 followers - usually in TikTok videos. Ms. Crum published an article on candlestick charts, which show the price range of a participation on a given day. In another, she explained how to use the Relative Strength Index (RSI), which measures price changes over time and indicates when a stock may be oversold or overbought.
"I started doing swing trades, an old, reliable way of trading," said Ms. Crum, adding that she will trade the day she discovers something that "appears to be an obvious winner" .
Like other young investors, it is riding a wave that would not be possible without the widespread introduction of commission-free trading in late 2019, which opened the doors to those with no deep pockets. According to Piper Sandler, a financial services company, retail now accounts for around 22 percent of total trade volume, up from 13 percent a year ago when the total volume was also lower.
"There are days when I make 100 or more trades," said Dan Knight, 26, a day trader who co-moderated a podcast about the stock market. "I could never have traded on commission fees of $ 7."
Mr. Knight's podcast "PGIR" was recently one of the top 50 business shows in Apple podcasts in the US and was rated as a top investing show according to Chartable in early February. Disrespectful and full of profanity, each episode begins with a voice-over from rapper Flavor Flav, and Mr. Knight is introduced as the deity of the dips, while co-host Mitch Hennessey follows Hugh Henne - a nod to his grandfather's first name and playfully Hugh Hefner .
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