ASIC’s analysis of markets during the COVID-19 period has disclosed a considerable increase in the retail activity across the securities market and the exposure to risk. Through the analysis, it was found that the retail investors were engaged in short-term trading strategies unsuccessfully trying to time price trends. Other observations include:
- There is an increase in the trading frequency.
- The duration to the hold the securities decreased substantially.
- Market professional faced challenging times in this turbulent environment.
- Retail investors chasing for quick profit by playing the market over the short-term have performed poorly.