2025 has been a record year for retail traders, topping even the GameStop mania of 2021. Retail activity is up 50% compared to last year, indicating increased volatility. Dip-buying has been a major trend, with events like DeepSeek’s rise in January and Trump’s tariff announcement in April shaping strategies.

ETFs have dominated retail-trader inflows, comprising 75% of investments this year. Single-stock buying slowed down after February-to-April volatility in favor of ETFs and options. The SPDR Gold Shares ETF has attracted significant retail-investor interest in 2025, coinciding with a surge in gold prices.

Retail traders are focusing on purchasing the top 30 AI stocks, selling off the broader market to finance these investments. This concentration in mega-cap tech names has been at the expense of the “SPX 470.” The sustainability of this trend remains uncertain as valuation concerns persist.

JPMorgan’s equity-strategy team identified three main trends in 2025: dip-buying, ETF dominance, and the shift towards AI stock purchases. Retail investors have adapted their strategies based on market events, with a record concentration in tech names. The future trajectory of these trends will depend on market dynamics and investor sentiment.

Read more at Yahoo Finance: From buy-the-dip to ETFs, here are the 3 trends that have defined day traders in 2025