I've always invested in stocks in a traditional way, but I'm curious as to how the whole Reddit Wallstreetbets thing works. Any of you involved? Trying to figure out how a shorted stock ends up being a darling for the debutantes ball. Definitely a gamble but intriguing as well.
Meme Stocks and Reddit Wallstreetbets
- Thread starter Sgtsideways
- Start date
As long as you get in when the stock is low you can make millions as long as you get out early before the stock plummets. They drive the stocks high, you just hope you can sell it to another sucker.
Take all your money. Go to Vegas. Walk into the first casino you see, find a roulette wheel, and bet it all on black. No matter what, you'll have a much better result than the stock market.
Your expected ROI on a roulette color bet is -2.7%.
The stock market has an inflation adjusted ROI of +7-8% over the past 100yrs.
Both are bets. But I will take the gamble in the market for an expected 10% bump in spread.
The stock market has an inflation adjusted ROI of +7-8% over the past 100yrs.
Both are bets. But I will take the gamble in the market for an expected 10% bump in spread.
How do you end up with $1M in the stock market?
Start with $2M
Start with $2M
Investing is as dumb as looking at the end of the barrel of a loaded gun.
Yeah people have made money in the past years.
It is time for a huge crash due to the hyperinflation and money being pumped into the economy to falsely keep it up.
Just wait your stocks wont be worth anything like I have in my savings account.
Maybe as toilet paper...
Doc
I'll agree to some extent with hyperinflation on the scene and deflation that will follow. On your end, the money you have in savings is losing everyday. Interest rates at banks are for all practical purposes 0 or below 0% as inflation takes what ever the bank decides to pay you. In a perverse way, you are actually paying the bank to hold your money.
Latest figures from last week are showing inflation at 5% for the month of May. Is your bank paying you 5% in your savings account? If it is, let me know. I'll send some money their way.
There is still money to be made in the market, but it will crash as part of the cycle. If the country goes total commie, then you'll have nothing to fear from investments and their cycles.They'll just take it away from you!
Thanks to the stock market, the wife and I were able to retire in our late fifties. Capitalism and American, as founded, have been the greatest machines for freedom that mankind has come up with in all of human history. Sadly, few appreciate that along with the sacrifices of others to maintain.
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I just focus on the stuff I know works best for me. When it comes to the meme stocks, I've tried a couple of times and missed the boat after the initial pump. It's just not worth it to me to get involved in meme stocks or shit coins like DOGE. With crypto, the vast majority of coins are pure shit. LTC, BTC, and ETH are the only ones worth a damn........for now.
Here's how I understand the whole "Gamestop" thing happened ( not in sequence but sort of the gist ):
= People learned that there is a reporting method to "shorting stocks"
= People learned that Gamestop was "deliberately" being shorted by Wall Street firms.
= People starting talking it up on Reddit
= People wanted to get back at the big boys by showing them two can play games
= People started buying Gamestop stock to drive up the price per share.
= People who were shorting Gamestop were getting caught up.
= People shorting Gamestop were actually "borrowing" Gamestop shares as an advantage to help their short scheme work.
= People shorting Gamestop were having to cover the extra "borrowed" shares at the new higher prices.
= People shorting Gamestop got a taste of their own game.
= People on Reddit got SUPER happy to hear big firms were now paying out (in some reports) 10's of millions of dollars.
= People on Reddit are still trying dot he same with other stocks like AMC
I'm not a "stock/Wall Street" guy but this is the way I understand they are playing the game.
= People learned that there is a reporting method to "shorting stocks"
= People learned that Gamestop was "deliberately" being shorted by Wall Street firms.
= People starting talking it up on Reddit
= People wanted to get back at the big boys by showing them two can play games
= People started buying Gamestop stock to drive up the price per share.
= People who were shorting Gamestop were getting caught up.
= People shorting Gamestop were actually "borrowing" Gamestop shares as an advantage to help their short scheme work.
= People shorting Gamestop were having to cover the extra "borrowed" shares at the new higher prices.
= People shorting Gamestop got a taste of their own game.
= People on Reddit got SUPER happy to hear big firms were now paying out (in some reports) 10's of millions of dollars.
= People on Reddit are still trying dot he same with other stocks like AMC
I'm not a "stock/Wall Street" guy but this is the way I understand they are playing the game.
First off congrats on retirement well done.
That story will play out again this summer with more volatility and panicked sellers and once again investors will storm back in and pick up more bargains. There are far more investors, pension funds etc who understand seeking yield for their assets is far less risky than letting it sit on fire every day earning near zero getting annihilated by inflation. The reality is if these doomers were so sure the end was just around the corner they'd be sitting in Ultra Pro Short 3x ETFs waiting to clean up vs sitting in a near zero savings account.
Enjoy the retirment Sgtsideways!
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I’ve made some good money in the last six months but I’m not evaluating a company’s performance or making decisions based on the short squeeze chase. Instead, I follow the social media trends of gen z and millennials to determine what is and will become popular and buy when it’s just starting to gain popularity traction and then sell when everyone starts having a fear of missing out and irrationally purchase the stock for much higher than they should. Once it’s driven up, I dump. I’m playing the social media trends and wouldn’t claim to have any more knowledgeable the crayon-eating marine I am.
It’s been good money, though.
It’s been good money, though.
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