Apple Led The Pack Of Stocks Retail Investors Traded Most In 2013

Posted: Jan 10 2014, 7:31am CST | by


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Apple Led The Pack Of Stocks Retail Investors Traded Most In 2013
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The 10 Names Retail Investors Traded Most In 2013

“The whole world has an opinion on Apple,” noted JJ Kinahan, chief strategist at TD Ameritrade. Universal intrigue led retail investors to trade shares of the iPhone maker more often than any other stock in 2013. Following Apple, Facebook, Tesla Motors, Netflix and Google round out the top five most actively traded stocks of 2013.

As the market at large reached new highs in the final month of the year, TD Ameritrade’s investor movement index rose to a record high of 5.62 in December. Meaning that average investors were getting in and out of stocks more frequently than in any other period since the index was created four years ago. The 20 names retail investors traded most made up almost 25% of their total annual trade volume.

Kinahan, a Forbes contributor, pointed out that due to the strength in equities, many stocks had “sexy” stories that drew both day traders and long-term investors. “That’s why Apple is a perennial favorite,” he said. “Whether you are someone who love their products and wants to buy the stock and hold it, or somebody who wants to be in and out throughout the day the markets were tight enough and liquid enough that you could do either one.” While the day traders will jump on whatever is moving, the constant motion of heavily traded stock can also provide opportunities for investors who want flexibility.

“Because many of [these stocks] have wider ranges throughout the year,” says Kinahan, “it give the investors more of a chance to be in and out throughout the year or take a portion of their position and be in and out of it which still holding on to their core investment.”

On the other hand, this year’s drop-offs included JPMorgan Chase, Caterpillar, General Electric and Chesapeake Energy Corporation. A fairly consistent downward trend caused investors to leave Caterpillar and stay away. While JPMorgan Chase returned 30.1% for the year, various investigations into the bank’s dealing consistently left open the possibility of big news causing a precipitous drop in share value. With strong returns available elsewhere investors may have had less incentive to take the risk.

More appealing hype, on the other hand, may have helped stocks like LinkedIn and 3D Systems enter the top 20 most active names of the year. TD Ameritrade is keeping an eye on Twitter to see if it can break into the top 20 in 2014. With less than two months under its trading belt, the social network didn’t make it this year, but it’s strength in November and December brought high hopes for its first full year of trading.

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Source: Forbes

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