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Every Day-Trader Dollar Is Worth Five in a New Theory on Stocks

  • New research sets out to explain equity market fluctuations
  • ‘Mystery’ of random moves best tackled by understanding flows
Bloomberg business news
What's Next for Equity Markets?

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.