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How to Invest, Advice From Peter Tuchman


If you don’t know his name, you likely know his face. Peter Tuchman is considered the most photographed trader on the floor of the New York Stock Exchange.

In his 35 years on Wall Street, he has never seen anything like this before, he told Insider. Stocks were on pace for their sixth-straight weekly decline on Thursday with no sign of letting up anytime soon.  

Tuchman is a firm believer that the market can handle virtually any kind of crisis, including higher interest rates and war, but only if these factors are happening one or two at a time. Right now, everything is hitting at once. Not to mention, the world is coming out of a global pandemic and there’s a flood of new retail investors, he said.

Between Wall Street Bets, Robinhood, meme stocks, dogecoin, and stimulus checks: “This movie I have never seen before,” Tuchman said.

All of these elements place us in the middle of a situation that’s unpredictable — and he’s not sure when we’re coming out of it.

Perhaps one of the biggest things looming over the market is the anxiety over the war in Ukraine, Tuchman said. Historically, the market stabilizes once war starts but we are not seeing that play out this time. In fact, there are many moving elements that aren’t following the script. Price action within the market over economic news and earnings is counterintuitive to what history has told us, he noted. 

“We’re seeing companies come out with positive earnings, positive guidance, and go down a hundred points. We’re seeing companies miss on earnings and go up a hundred points,” Tuchman said. “We see the interest rate get raised 50 basis points, which is kind of a bearish indicator within the market and it goes up a thousand points.”

As for how investors should respond, there are 99 ways of doing this wrong, and only one way to do it right: have a plan, he said. If you’re a long-term holder or investor and you haven’t sold by now then hold tight, he said.

On the other hand, if you’re a trader,


volatility

is a good thing. However, don’t try to call the bottom or top right now, as that’s a very dangerous game, he said. You may think you’re buying the bottom and then the bottom falls out of the bottom, Tuchman added. Instead, take smaller positions and make tighter stop orders. 



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