Retail investors bought the dip during Monday's stock market plunge

Data from Interactive Brokers, a major retail trading platform, indicates that their clients viewed Monday's market selloff as a buying opportunity rather than a reason to exit the market.

Here are the details: Although Interactive Brokers doesn't release daily data, it provides five-day moving averages.

For example, Nvidia, the most traded stock last week, had an average of 83,000 more shares bought than sold. By the next measurement period, from Tuesday to Monday, this average increased by 17% to 97,000, suggesting a notable surge in buying on Monday alone.

Similar trends were observed in other popular stocks such as Tesla and Amazon.

Leveraged tech-stock ETFs like SOXL and TQQQ, which aim to deliver triple the daily returns for specific asset classes, also experienced a rise in net buying activity.

The takeaway: Many retail investors profited from the stock market dip in 2020, and it appears they have applied that lesson by seizing the recent market dip as a buying opportunity.