Retail and institutional investors exhibit distinct behaviors in the market. Retail investors, often driven by emotion and short-term market trends, may engage in speculative trading and are more susceptible to market volatility. In contrast, institutional investors, equipped with professional expertise and vast resources, typically follow long-term strategies, focusing on fundamental analysis and risk management. They can influence market dynamics significantly due to their large transaction volumes. The differing approaches lead to varied responses to market events, with retail investors potentially reacting more sharply to short-term fluctuations, while institutional investors maintain a more stable and calculated approach.