A surge in brokerage accounts combined with speculation on risky stocks are a hazardous recipe, says one market watcher.
“People are new to trading and new to investing and want to take advantage of these wild swings,” Caleb Silver, editor-in-chief of Investopedia, tells Yahoo Finance’s The First Trade.
“These are the most dangerous times to start day trading … This is when people really get hurt,” he added.
Silver says Investopedia is seeing a surge in searches “for everything from day-trading techniques, rules to live by for new day traders, to how to trade the options market.”
Some of the recent top stocks which new investors have been leaning into include Hertz (HTZ), which filed for bankruptcy protection in May; Nikola Motors (NKLA), the hybrid truck company which recently listed on the Nasdaq (^IXIC); Top Ships (TOPS), the penny stock; as well as Oasis Petroleum (OAS) and American Airlines (AAL)—