For individual investors, the challenge can be taking on bets alongside professional investors such as short sellers, whose activity can also trigger big moves. Often you hear the narrative that it s just retail traders, but that s not the case, wrote JJ Kinahan, TD Ameritrade s chief market strategist, in a recent market update. The heavy volume suggests there s a lot of big firms in there, also, he said.
For example, distressed investment firm Mudrick Capital reportedly bought and sold 8.5 million AMC shares on Tuesday.
Understandably, investors may be so caught up in the gains that they forget to remember the potential for losses.
The movie theater chain said it launched a portal on its website for individual investors. The site, which requires stockholders to self-identify and sign-up for the chain s loyalty program, contains special offers and company updates.
AMC s retail investors have propped up company since January, sending the stock up more than 1,400% in the last five months. The company said it had 3.2 million individual shareholders as of March 11, who own about 80% of the 450 million shares outstanding. Many of them were inspired by the r/wallstreetbets Reddit page to purchase the stock. The forum selected several companies that were being shorted by large hedge fund groups and decided to take action.