TD Ameritrade CEO Hockey Says Volatility Is Good for Trading

The video discusses market volatility and its impact on trading, highlighting the importance of finding a volatility sweet spot that encourages trading without causing significant losses. It examines retail investor behavior, noting trends in cash holdings and trading activity. The video also explores trends in stock and crypto trading, the effects of rising interest rates, and the impact of commission-free trading on brokerages.

What is the main benefit of market volatility for trading businesses?

• It reduces the number of trades.

• It stabilizes market prices.

• It decreases investor engagement.

• It increases trading opportunities.

How do retail investors typically react during market sell-offs?

• They invest more in volatile stocks.

• They remain largely inactive.

• They move their investments to cash.

• They increase their trading activity.

What is the primary use of cash for most clients in a rising interest rate environment?

• To invest in real estate

• To pay off debts

• To earn maximum yield

• To deploy into market opportunities

Which sector saw a significant increase in trading interest recently?

• Healthcare

• Technology

• Energy

• Cannabis

What is a potential reason for the shift from passive to active trading?

• Boredom with passive strategies

• Decreased interest in individual stocks

• Lack of market volatility

• Higher fees for active trading

How has the cost of trading changed since 1975?

• It has decreased by 90%.

• It has remained the same.

• It has increased significantly.

• It has increased by 50%.

What is one effect of commission-free trading on the brokerage industry?

• Industry consolidation

• Decreased competition

• Increased trading costs

• Reduced trading volume