Tuchman: Disciplined retail traders can beat the S&P 500

Peter Tuchman, the New York Stock Exchange’s longest-serving floor trader, said disciplined retail traders who follow strict rules can outperform the S&P 500. The 40-year veteran, who trades up to $1 billion in stock a day, made the comments days after U.S. regulators removed the $25,000 minimum equity requirement for pattern day traders and allowed smaller accounts to make more frequent day trades.

He pointed to the surge in retail trading during the COVID-19 pandemic and the spread of commission-free broker apps that gave more individuals market access. Tuchman estimated 80% to 90% of the first wave of meme-stock participants lost their accounts; he said those who remained learned from mistakes and became more methodical traders.

Tuchman describes a trading approach that prioritizes small, repeatable gains over large speculative bets. At his Wall Street Global Trading Academy he teaches use of stop orders, taking quick partial profits and strict limits on trade size. “Discipline and consistency are the key to a successful trader,” he said, adding that traders who aim for singles and doubles improve their odds and that trading driven by fear of missing out is not sustainable.

He contrasted active day trading with passive investing, noting that someone investing $250 a month into the S&P 500 from age 18 to 60 would accumulate about $1.4 million. He used that example to emphasize the need for active risk management in trading and to note that day trading is not a simple shortcut to wealth.

Tuchman said he has mentored retail traders who now run profitable operations; some in their 20s earn multimillion-dollar incomes and lead sizable online communities. He also observed that retail flows can influence index moves during large market swings and that the regulatory change may broaden retail participation.

His advice centers on risk controls, consistent rules and modest profit targets. He told prospective traders to expect many peers to fail early, and that those who persist and follow disciplined practices can improve through experience and repetition.