Retail traders are becoming more cautious about the stock market, with bullishness declining to 52% from 57% in the fourth quarter, according to the latest trader survey from Charles Schwab.
The shift in sentiment around artificial intelligence stocks has been
Bullishness toward AI-related investments among retail traders has declined sharply, dropping around 12 percentage points, reflecting greater caution and a notable shift away from previous optimism.
Retail traders are engaging in buying dips, selling at market tops, increasing sophisticated options trading (like multi-legged positions), and focusing more on hedging than speculation.
Retail investors now use more advanced trading strategies, previously used mostly by institutions, such as structured options trades, risk management, and high-probability strategies.
