Retail Traders: Smarter Than You Think

by | Apr 10, 2024

There’s a common story we hear about the stock market: Wall Street investors are the “smart money”, and small-time, home-based retail traders don’t stand a chance.

Especially when you see stocks like NVIDIA skyrocket, it might seem like the big guys have all the advantages.

But here’s the real deal: it’s not about being smart or not. It’s about having the chance to play the game.

Imagine wanting to join a high-stakes poker game, but the buy-in is more than you make in a year. That’s how retail traders feel when they look at the price of trading options on big-name stocks.

We’re not talking about a few hundred bucks; some options can cost thousands of dollars for a single contract.

Let’s look at the options chain for NVDA as an example. Below is a screenshot showing the options for about 6 weeks out.

Whether you want to go long or short on NVDA, it’ll cost you over $6,000 even if you’re going out of the money. And remember that’s not even 60 days worth of time on these options.

So, it’s not that everyday investors don’t see these opportunities. It’s that they often just can’t afford to risk that much on a single bet.

As it turns out, it’s not that Wall Street is the only place with smart money. The issue is, they’ve got deeper pockets.

So what are retail traders to do? Go further out of the money? Buying even less time?

Both of those would certainly reduce your cost, but ultimately that’s like playing with fire.

And if you’ve ever traded, you know what it feels like to have picked a good trade that just ran out of time.

That’s why I think my Jump Trades strategy is so great. It gives regular folks a shot at the same big wins without needing a fortune to start.

Imagine trading the best stocks — even NVDA — for about $73. That’s a far cry from the tens of thousands you’d otherwise need.

And we’re not giving anything up, because we’re still targeting high double digit and even triple digit wins.

This way, it’s not just the wealthy who can make money on the market’s biggest movers. Retail traders get to play too, with a fair shot to win big.

The “smart money” vs “dumb money” debate has never been about smarts.

It’s always been about retail traders being left behind because they simply haven’t had the right tools to effectively leverage their specific account sizes.

With Jump Trades, we’re changing the game, making the best trades accessible to everyone, not just the big players.

— Nate Tucci

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