Disciplined retail traders who follow the rules could probably beat the S&P 500, according to Peter Tuchman, the longest-serving floor trader at the New York Stock Exchange.
The 40-year veteran, who trades up to $1 billion in stock daily, says the COVID-era retail wave has produced a new class of smart money.
Why Tuchman Says Retail Can Beat the S&P 500
In a new interview, Tuchman said the COVID trading boom rewired who holds the edge. Commission-free apps gave anyone with a phone and $100 access to markets.
“I believe if you’re a responsible, disciplined, consistent day trader and you follow the rules, you could probably beat the S&P.”
He estimates 80 to 90% of that first meme-stock wave blew up their accounts. The survivors matured, and “there’s this new generation of retail that’s become smart money,” he said.
Some traders he mentored “are making $20 million a year now in their 20s and have these amazing communities around them.”
His claim lands days after US regulators scrapped the $25,000 pattern day trader minimum. The rule change opens unlimited day trades to accounts as small as $2,000.
Retail flows already steer index direction during major swings.
Discipline Beats Home Runs
Tuchman’s method favors small, repeatable wins over swinging for the fences. He teaches stop orders and quick partial profits at his Wall Street Global Trading Academy.
“Discipline and consistency are the key to a successful trader. Somebody who hits singles and doubles is going to be a successful day trader.”
The caveat cuts the other way. Passive investors putting $250 monthly into the S&P 500 from age 18 would reach $1.4 million by 60, he noted.
For traders chasing more, his warning stands. “FOMO, hype and hope are not sustainable trading strategies.”
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