Why Retail Investors Could Be About To Win It All

Nobody cheered harder than I did for the Redditors and retail investors when they dealt a couple of leveraged-up hedge funds a bloody nose, then took them down to the mat. If you've been with me for a while, you know how strongly I believe in the free market – and a free market is a democratic market.

Let me be clear about this: Anyone who wants to should be able to be in the market, build wealth, and, ultimately, contribute to the great American experiment and experience; that privilege shouldn't be reserved for Wall Street insiders or "elite."

But the truth is, as exciting as it was, GameStop wasn't exactly decisive – it was just a skirmish in the wider war to make our capital markets more accessible to everyone.

One of the most powerful weapons in the market wars is information. Data. It might not be the most thrilling idea, but good information can mean the difference between a winning trade that pays off big time, or a great investment that keeps paying off over and over… or watching money go down the drain.

The way things stand now, Wall Street has the goods. High-frequency traders, hedge funds, banks – they pay a lot of money for this, let's call it "proprietary" data – they have it, and they don't want you to get your hands on it.

So there's a two-tier system at work. It's fundamentally unfair, and it's certainly an "unfree" element in what should be a free market.

But that may be changing.

The Securities and Exchange Commission is fighting, hard for a change, to make sure regular investors get a crack at the data that made Wall Street $28 billion in profits in the first half of 2020 alone.

Here's exactly what you need to know, and what you should do about it…

There's Important, Actionable Information at Stake Here

The big exchanges publish two sets of data in what regulators and detractors, including yours truly, call a "two-tier system."

First off, exchanges receive thousands, sometimes millions, of orders every second of every day; orders to buy and sell specific amounts of stocks at specific prices. They take all the bid and offer data coming into their "pipes" and consolidate it into what's called the National Best Bid and Offer, the NBBO.

The NBBO shows how many shares of a stock are being bid for at the highest price and how many shares are being offered at the lowest price. That's what the public sees.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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