Retail Trader Risk Management Tool

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Retail Trader Risk Management Tool

Inspired by a conversation on:

Planet Money

Planet Money

How Jane Street’s secret billion-dollar trade unraveled

Host: Alexi Horowitz-Ghazi and Mary Childs

Timestamp: 00:19:11 - 00:19:38

Listen to Episode • View Podcast • All Ideas from Planet Money

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Feather Flow

Direct Quote

"90 percent of everyday retail investors were losing money on options trading."

Market Gap

High risk of losses among retail investors in options trading.

With a staggering 90% of retail investors losing money in options trading, there is a clear gap in risk management tools tailored for this demographic. Retail traders often lack access to sophisticated analytics and strategies that institutional traders utilize to minimize risks. Without proper tools to assess their risk exposure and manage their trades effectively, many retail investors end up making impulsive decisions, leading to significant financial losses. A dedicated risk management tool could help these traders establish better practices, understand their risk tolerance, and implement more informed trading strategies.

Summary

The proposed business idea is to create a risk management tool specifically designed for retail options traders. This tool would provide analytics on individual trades, portfolio risk assessments, and alerts for market volatility. By integrating educational components, users could learn about risk management best practices while using the tool. The target audience would be retail traders who want to minimize their risks and improve their trading performance. Similar to platforms used by institutional traders, this tool could empower everyday investors to make more informed decisions and reduce their overall losses in the market.

Categorization

Business Model
SaaS
Target Founder
Technical
Difficulty
Medium
Time to Revenue
3-6 months
Initial Investment
$1,000-$10,000

Potential MRR (18-24 months)

Conservative
$2,000 - $5,000 MRR
Moderate (Most Likely)
$5,000 - $12,000 MRR
Optimistic
$12,000 - $25,000 MRR

* Estimates assume solo founder/bootstrap scenario with competent execution

Scores

Clarity
8/10
Novelty
7/10
Feasibility
7/10
Market Potential
9/10
Evidence
8/10
Overall
7.6/10
Found on September 24, 2025 • Analyzed on September 24, 2025 6:45 PM

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How should I validate this saas idea before building it?

2:34 PM

Great question! For a saas idea like this, I'd recommend starting with these validation steps:

  1. Customer interviews: Talk to Technical to understand their pain points
  2. MVP approach: Build a simple landing page to test demand
  3. Competitor analysis: Research existing solutions and identify gaps

Would you like me to help you create a specific validation plan for your medium difficulty idea?

2:35 PM

Yes, and what about the technical implementation? Should I build this myself or hire a team?

2:36 PM

Based on your idea's complexity and 3-6 months, here's my recommendation:

Technical Strategy:

  • Start with no-code tools for rapid prototyping
  • Consider your technical background and available $1,000-$10,000
  • Plan for scalability from day one

I can help you create a detailed technical roadmap and resource allocation plan...

2:37 PM

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