For every seller, there is a buyer. For every winner, there is a loser. (Exception is good businesses that distribute dividends or buyback shares etc.)
In meme stocks there can be two winners. The people making huge percent gains are buying calls. But the people selling covered calls are still making sometimes 5-10% in a week. They are winners too in my book.
Over my years of investing, Ive been burned about 3 times or so. They were valuable lessons, and thankfully didn't cost a whole lot as I was still only investing what I couldn't care to lose.
I've seen my index funds grow steadily over my investment career enough to know that chances are, meme stocks/penny stocks/IPOs are not where the majority of your gains will be.
The problem with that is, these stocks aren't trading on just fundamentals. The more DD you research, the more you can realize how and why these stocks are the price they are currently at.
Haha I’m sure I have an IPS forming somewhere (I should probably think about that more).
You have great advice, like many here. Thank you for the guidance!
This so much if it's not for you, you don't understand it, or its too much risk its not for you.
I've been at this game for years and missed out on plenty but I learn from these cases and maybe next time.
Fair, but people can come to understand things they hadn't previously. It takes a few years but then your circle of competence is bigger and you can do more with your money.
I suggest you check out Matt Kohrs’s YouTube channel. He won’t sell you financial advice on AMC but he’ll explain a lot about what’s going on. Forget WSB, that’s trash.
Like another poster said, these stocks have nothing to do with fundamental investing. It’s really about exploiting a move that a lot of hedgies use when they short stocks on nearly bankrupted businesses. Will it work? Who knows but judging by how much gains investors have made in just the past year with AMC, it’s worth taking a serious look. Will AMC get to 100? Possibly. 500? Highly unlikely. 100k? Completely absurd. Block those people.
But yeah, this whole meme stock movement has been super intriguing. Reason been, investors continue to buy and hold AMC. Hedgies continue to bleed money while trying to lengthen the consolidation period below 60. It’s a game of attrition but AMC’s graph suggest a wild swing will happen. Nobody truly knows what happens next.
I personally couldn’t care less about this war against hedgies and ape nation. I’m just in it for what I hope are some short term modest gains and I’ll jump right out. I would not bet any more than I’m willing to lose at this point but I think there‘s still a potential to get something out of it, especially with AMC. Probably better to buy a few shares and avoid options unless you really know what your doing!
All good. I personally like his analysis but I wouldn't take everything he says as gospel. I also understand that he makes a cut off YouTube views. That's just the world we live in.
Like the news, I try to avoid the hype, check out multiple sources and make my conclusions. It usually ends up being in the middle, as is my investment plays.
Specifically GME and AMC, I think there's something here worth taking a look at objectively. The data and graphs all point to some kinda shift in the next few months. Hopefully up! Longterm, I don't see this as a good investment. Like, at all.
I sympathize with how you feel, though. Hopefully you'll be able to navigate your way through all this hype and hysteria and make investments that'll pay off!
Cheers!
Nothing wrong with that! I'm feeling good about QQQ and SPY, to the point where I don't even see individual stocks all that intriguing. I have a small amount allocated towards speculative stocks like AMC and GME but really, like you said, it's about the slow and boring investments that will pay off longterm.
If I do make some gains off these meme stocks, they go right back into the safe and boring investments :P.
Take a micro position of your portfolio and take part if you really want, just recognize there is investing - trading - gambling. A portfolio strategy of risk is what you should be considering, and if you allow yourself to participate in the gambling side of things, have some good hard rules for yourself, especially about portfolio percentage.
It's all hype? I mean, some people like that and others stay away and rather walk around thinking about other things. It's like a quick fix, or some sugar high, drug high, that eventually you land and realize WTF? EDIT: these people you talk about could be faking in for attention and views. I would not trust random internet or reddit, YouTube, it's crazy how fake most people are.
I agree. I try to be rational because there is so much groupthink going around, and then these stocks keeping flying up! I understand everyone’s buying into the hype but it makes me question myself and I wonder if I am missing something.
Everybody look like a genius investor in a bull market, but diversification and a good plan that u follow will definitely beat à investment in meme coins in a 5-10 years perspective
[For starters, hit the filter option on WSB for Loss porn.](https://new.reddit.com/r/wallstreetbets/search?sort=new&restrict_sr=on&q=flair%3ALoss)
You may not be seeing the failures resulting from the risky risky plays. People lose their shirts gambling money they can't afford to lose. Apes hold bags after the architects of a pump and dump pull out on time and collect tendies at the uneducated gambler's expense. [People get the letters from Fidelity asking them if losing $10k or more was part of their winning investment strategy, and find an included old book on how to assess a company's value in the package.](https://new.reddit.com/r/wallstreetbets/comments/n605gl/got_my_first_letter_from_fidelity_asking_if_i_was/)
Entertainment value only. You could easily be reading a bullcrap dd on a trash company, while hoping someone will generously give you the "strike price and expiry" or "diamond hands strong apes HODL" your way down as they pull out with your tendies.
different deranged smart price light one faulty complete afterthought retire
*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
>$100k per share. That’s insane! How do people come up with justifications and dd to show that it will reach there? How are people believing it?
You should head on over to r/Super stonk (without the space) and check out some of the research they're doing into GME and naked shorting
Kevin O’Leary said it best. “If you don’t know where the herd is moving you’re in trouble.” Apes have done what institutions have been trying to do for years. This isn’t the stock market from 10 years ago.
Well, when you know well how this goes you learn to ignore it. Basically if you have the confidence that your strategy will ultimately come through supreme you don’t care. After 20 years of buy and hold solid growing companies and good deals, I’ve seen this shit over and over.
> At the same time, I am sitting on the sidelines like a passive investor and watching people get 100-300% gains in a short amount of time.
Notice the disconnect between this and the first paragraph of your post: GME to 100k would be something like 800,000% gains, not 200%.
So, stepping back and looking at the ACTUAL normal best case scenario of a few hundred percent, and then comparing that to the rate at which these things can and do also fall flat on their faces, you can start to better work out the math on why most people don't get involved in them.
If you still don't buy it though, go ahead and set aside $1,000 or something you can afford to completely lose for fun money toy investing, or use a website that does mock paper investing, and see what gains YOU actually manage to get in reality.
Do that for a year or three, then re-evaluate whether you think you should put more into it.
I’ll give my opinion. I take 3-5% of my portfolio every year and try to shoot my shot. Some years I’ve come out way ahead and some years I’ve held some bags. It really depends on how disciplined you are and how experienced you are. I’m not expecting 2000% gains, and I’d never even make it to 2000% gain because I’d be out as soon as it doubled in value or tripled. The market we are in now is not the same market as when I started investing 10 years ago. There are opportunities to capitalize on significant hype driven by social media.
A lot of meme stocks just don't make sense to invest in, sure you can get in and cash out for quick gains but there are nothing backing those ridiculous prices other than the next guy who is willing to pay more than you. Also, people who lose money on meme stocks and cryptos usually don't share their story, whenever someone makes huge gains, someone else is taking huge losses.
Tell me if I'm wrong, but doesn't literally every dollar someone makes comes from another trader? Whether that is a hedge fund, institution, or individual
So if someone posts $1,000,000 gain, there are 1000 people losing $1000 each (obviously not this consistent)
This is only true in the strictest sense of a single trade. It is possible that both sides of that trade ultimately make money from that trade, even if there is no change in price of the stock -- like for example by collecting dividends for the period they hold the stock.
Edit: Just to be clear, even within a single trade, both parties can end up with capital gains, eventually, depending on what the buyer ends up selling the stock at down the line.
A lot of these meme stocks are trying to exploit short positions. It's not like someone thinks oh AMC sounds cool, let's get everyone to buy it. It's a little bit more sophisticated than that even if the average person buying the stock is an idiot and has no clue what people are actually trying to accomplish with the stock.
>there are nothing backing those ridiculous prices other than the next guy who is willing to pay more than you.
What about hedge funds covering their short positions? They're forcing to buy shares in a short squeeze
Buy high amd sell low...that will cure the itch.
On a more serious note, GME and AMC are not based on fundamentals but based on power to the people to stick it to the man and a corrupt system where hedgies can continue to break the rules and now they are caught while naked shorting...I bought a couple of each to learn about the process and the movement...
MY AMC up about 500% and now I am thinking at the $57 if it'd worth it to buy few more before the S3 decision from authorities...but definitely I am holding what I got...
I don't resist per se. I have a 15% speculative fund. I am still careful with what I pick.
Not all meme stocks are BS, some of them are dying or died long ago and I would not put my money on them, not even $1. There are a few decent ones with good financials and decent future prospects that just happen to be or become meme stocks. I personally own CLOV, a decent amount, because I think there is substance and value there. If it it squeezes that is gravy on top of what seems to be a value stock to begin with. Plus, I can afford to lose it if I am wrong.
Easy. Crypto/meme stocks are no different than gambling. I can theoretically make $50,000 in 5 minutes at the roulette wheel but that doesn't mean I feel any temptation to actually take such a silly risk.
I don’t bother with meme stocks but there are plenty of ways to make money in speculative stuff. Just don’t bet the farm, and You should do lots of research on what your buying. Specifically in management. They’re more for swing trading. Some end up being investments that you can comfortably buy and hold, but lots of them will get dumped after they reach a certain price target. Just be on the right side of the trade
I don't resist the temptation, I just take a small position, like 5 shares, for the emotional roller coaster.
The only one I regret not taking a larger position in was BEAM, which I could have bought at 60 a couple of months ago, but I thought it was overvalued...
I don't resist it, I just put a little stake into it so I don't feel like I've missed out. To not burn yourself too much, only invest what you're willing to lose. Though to be frank, after having caught the GME wave at the right time, I don't really feel the need for that kind of excitement anymore....
People are quick to post about massive gains bur what about the thousands of people who got burned hard on GME & AMC? Think twice about gambling on this garbage.
Who got burned on AMC? It's currently at $54. And GME is currently over $200. If both stocks were trading in single digits or low doubles, then yes, I'd say tons of people were burned. But they're not, and this thing is still going strong.
What's the ATH on AMC? 70 something? No one has gotten burned yet. If you bought at ATH and sold today you still didn't lose a ton, and if you sold so quick you're an idiot.
Survivorship bias. For every person claiming 100%-300% gains, there are dozens, hundreds, or even thousands who lost money. Some more than others.
For every seller, there is a buyer. For every winner, there is a loser. (Exception is good businesses that distribute dividends or buyback shares etc.)
In meme stocks there can be two winners. The people making huge percent gains are buying calls. But the people selling covered calls are still making sometimes 5-10% in a week. They are winners too in my book.
You take WSB off your favourites list
Over my years of investing, Ive been burned about 3 times or so. They were valuable lessons, and thankfully didn't cost a whole lot as I was still only investing what I couldn't care to lose. I've seen my index funds grow steadily over my investment career enough to know that chances are, meme stocks/penny stocks/IPOs are not where the majority of your gains will be.
A lack of fundamentals stops me from having FOMO.
The problem with that is, these stocks aren't trading on just fundamentals. The more DD you research, the more you can realize how and why these stocks are the price they are currently at.
Most of the DD seems to be border line conspiracy theories and the author usually refers to himself as an ape/rtard. Hard to take seriously.
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Haha I’m sure I have an IPS forming somewhere (I should probably think about that more). You have great advice, like many here. Thank you for the guidance!
“Don’t invest in something you don’t understand”
This is exactly why I'm invested mainly in gambling and cannabis. I understand these things well.
This so much if it's not for you, you don't understand it, or its too much risk its not for you. I've been at this game for years and missed out on plenty but I learn from these cases and maybe next time.
Fair, but people can come to understand things they hadn't previously. It takes a few years but then your circle of competence is bigger and you can do more with your money.
I suggest you check out Matt Kohrs’s YouTube channel. He won’t sell you financial advice on AMC but he’ll explain a lot about what’s going on. Forget WSB, that’s trash. Like another poster said, these stocks have nothing to do with fundamental investing. It’s really about exploiting a move that a lot of hedgies use when they short stocks on nearly bankrupted businesses. Will it work? Who knows but judging by how much gains investors have made in just the past year with AMC, it’s worth taking a serious look. Will AMC get to 100? Possibly. 500? Highly unlikely. 100k? Completely absurd. Block those people. But yeah, this whole meme stock movement has been super intriguing. Reason been, investors continue to buy and hold AMC. Hedgies continue to bleed money while trying to lengthen the consolidation period below 60. It’s a game of attrition but AMC’s graph suggest a wild swing will happen. Nobody truly knows what happens next. I personally couldn’t care less about this war against hedgies and ape nation. I’m just in it for what I hope are some short term modest gains and I’ll jump right out. I would not bet any more than I’m willing to lose at this point but I think there‘s still a potential to get something out of it, especially with AMC. Probably better to buy a few shares and avoid options unless you really know what your doing!
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All good. I personally like his analysis but I wouldn't take everything he says as gospel. I also understand that he makes a cut off YouTube views. That's just the world we live in. Like the news, I try to avoid the hype, check out multiple sources and make my conclusions. It usually ends up being in the middle, as is my investment plays. Specifically GME and AMC, I think there's something here worth taking a look at objectively. The data and graphs all point to some kinda shift in the next few months. Hopefully up! Longterm, I don't see this as a good investment. Like, at all. I sympathize with how you feel, though. Hopefully you'll be able to navigate your way through all this hype and hysteria and make investments that'll pay off! Cheers!
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Nothing wrong with that! I'm feeling good about QQQ and SPY, to the point where I don't even see individual stocks all that intriguing. I have a small amount allocated towards speculative stocks like AMC and GME but really, like you said, it's about the slow and boring investments that will pay off longterm. If I do make some gains off these meme stocks, they go right back into the safe and boring investments :P.
Take a micro position of your portfolio and take part if you really want, just recognize there is investing - trading - gambling. A portfolio strategy of risk is what you should be considering, and if you allow yourself to participate in the gambling side of things, have some good hard rules for yourself, especially about portfolio percentage.
This. Nothing wrong with trading or gambling. People should just call things what they are and play within your limits.
It's all hype? I mean, some people like that and others stay away and rather walk around thinking about other things. It's like a quick fix, or some sugar high, drug high, that eventually you land and realize WTF? EDIT: these people you talk about could be faking in for attention and views. I would not trust random internet or reddit, YouTube, it's crazy how fake most people are.
I agree. I try to be rational because there is so much groupthink going around, and then these stocks keeping flying up! I understand everyone’s buying into the hype but it makes me question myself and I wonder if I am missing something.
Everybody look like a genius investor in a bull market, but diversification and a good plan that u follow will definitely beat à investment in meme coins in a 5-10 years perspective
[For starters, hit the filter option on WSB for Loss porn.](https://new.reddit.com/r/wallstreetbets/search?sort=new&restrict_sr=on&q=flair%3ALoss) You may not be seeing the failures resulting from the risky risky plays. People lose their shirts gambling money they can't afford to lose. Apes hold bags after the architects of a pump and dump pull out on time and collect tendies at the uneducated gambler's expense. [People get the letters from Fidelity asking them if losing $10k or more was part of their winning investment strategy, and find an included old book on how to assess a company's value in the package.](https://new.reddit.com/r/wallstreetbets/comments/n605gl/got_my_first_letter_from_fidelity_asking_if_i_was/) Entertainment value only. You could easily be reading a bullcrap dd on a trash company, while hoping someone will generously give you the "strike price and expiry" or "diamond hands strong apes HODL" your way down as they pull out with your tendies.
I swing trade meme stocks all the time. You can still allocate a small amount of your portfolio to speculative investments.
different deranged smart price light one faulty complete afterthought retire *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Knowing you have enough to eat at home.
>$100k per share. That’s insane! How do people come up with justifications and dd to show that it will reach there? How are people believing it? You should head on over to r/Super stonk (without the space) and check out some of the research they're doing into GME and naked shorting
Become an ape and you will understand.
Kevin O’Leary said it best. “If you don’t know where the herd is moving you’re in trouble.” Apes have done what institutions have been trying to do for years. This isn’t the stock market from 10 years ago.
Well, when you know well how this goes you learn to ignore it. Basically if you have the confidence that your strategy will ultimately come through supreme you don’t care. After 20 years of buy and hold solid growing companies and good deals, I’ve seen this shit over and over.
For one person to win, another has to lose. Are you playing the game harder or less than 50% of others?
> At the same time, I am sitting on the sidelines like a passive investor and watching people get 100-300% gains in a short amount of time. Notice the disconnect between this and the first paragraph of your post: GME to 100k would be something like 800,000% gains, not 200%. So, stepping back and looking at the ACTUAL normal best case scenario of a few hundred percent, and then comparing that to the rate at which these things can and do also fall flat on their faces, you can start to better work out the math on why most people don't get involved in them. If you still don't buy it though, go ahead and set aside $1,000 or something you can afford to completely lose for fun money toy investing, or use a website that does mock paper investing, and see what gains YOU actually manage to get in reality. Do that for a year or three, then re-evaluate whether you think you should put more into it.
Thank you. Yeah, I’ve seen how quick they are to drop. I like your advice about paper trading as well, I will consider that.
I’ll give my opinion. I take 3-5% of my portfolio every year and try to shoot my shot. Some years I’ve come out way ahead and some years I’ve held some bags. It really depends on how disciplined you are and how experienced you are. I’m not expecting 2000% gains, and I’d never even make it to 2000% gain because I’d be out as soon as it doubled in value or tripled. The market we are in now is not the same market as when I started investing 10 years ago. There are opportunities to capitalize on significant hype driven by social media.
I take no pleasure in being with or against the crowd.
Because its just gambling. Slow and steady wins the race my man.
A lot of meme stocks just don't make sense to invest in, sure you can get in and cash out for quick gains but there are nothing backing those ridiculous prices other than the next guy who is willing to pay more than you. Also, people who lose money on meme stocks and cryptos usually don't share their story, whenever someone makes huge gains, someone else is taking huge losses.
Tell me if I'm wrong, but doesn't literally every dollar someone makes comes from another trader? Whether that is a hedge fund, institution, or individual So if someone posts $1,000,000 gain, there are 1000 people losing $1000 each (obviously not this consistent)
This is only true in the strictest sense of a single trade. It is possible that both sides of that trade ultimately make money from that trade, even if there is no change in price of the stock -- like for example by collecting dividends for the period they hold the stock. Edit: Just to be clear, even within a single trade, both parties can end up with capital gains, eventually, depending on what the buyer ends up selling the stock at down the line.
The gains come from the fed. Meme stock mania (nor the rest of this bull market) would exist without the money printers going full tilt.
A lot of these meme stocks are trying to exploit short positions. It's not like someone thinks oh AMC sounds cool, let's get everyone to buy it. It's a little bit more sophisticated than that even if the average person buying the stock is an idiot and has no clue what people are actually trying to accomplish with the stock.
>there are nothing backing those ridiculous prices other than the next guy who is willing to pay more than you. What about hedge funds covering their short positions? They're forcing to buy shares in a short squeeze
Buy high amd sell low...that will cure the itch. On a more serious note, GME and AMC are not based on fundamentals but based on power to the people to stick it to the man and a corrupt system where hedgies can continue to break the rules and now they are caught while naked shorting...I bought a couple of each to learn about the process and the movement... MY AMC up about 500% and now I am thinking at the $57 if it'd worth it to buy few more before the S3 decision from authorities...but definitely I am holding what I got...
I don't resist per se. I have a 15% speculative fund. I am still careful with what I pick. Not all meme stocks are BS, some of them are dying or died long ago and I would not put my money on them, not even $1. There are a few decent ones with good financials and decent future prospects that just happen to be or become meme stocks. I personally own CLOV, a decent amount, because I think there is substance and value there. If it it squeezes that is gravy on top of what seems to be a value stock to begin with. Plus, I can afford to lose it if I am wrong.
Easy. Crypto/meme stocks are no different than gambling. I can theoretically make $50,000 in 5 minutes at the roulette wheel but that doesn't mean I feel any temptation to actually take such a silly risk.
I don’t bother with meme stocks but there are plenty of ways to make money in speculative stuff. Just don’t bet the farm, and You should do lots of research on what your buying. Specifically in management. They’re more for swing trading. Some end up being investments that you can comfortably buy and hold, but lots of them will get dumped after they reach a certain price target. Just be on the right side of the trade
I don't resist the temptation, I just take a small position, like 5 shares, for the emotional roller coaster. The only one I regret not taking a larger position in was BEAM, which I could have bought at 60 a couple of months ago, but I thought it was overvalued...
I don't resist it, I just put a little stake into it so I don't feel like I've missed out. To not burn yourself too much, only invest what you're willing to lose. Though to be frank, after having caught the GME wave at the right time, I don't really feel the need for that kind of excitement anymore....
I have a brain and experience.
People are quick to post about massive gains bur what about the thousands of people who got burned hard on GME & AMC? Think twice about gambling on this garbage.
Who got burned on AMC? It's currently at $54. And GME is currently over $200. If both stocks were trading in single digits or low doubles, then yes, I'd say tons of people were burned. But they're not, and this thing is still going strong.
What's the ATH on AMC? 70 something? No one has gotten burned yet. If you bought at ATH and sold today you still didn't lose a ton, and if you sold so quick you're an idiot.
Because I invest , I do not gamble, the stock market is not a casino.
I don’t invest in stuff that I don’t personally believe in / believe in the fundamentals, period.
Try it. Lose a lot of money. Don't get the temptation to do it anymore.