Hi Friends,
I confess that I am not as familiar with all that is going down on Reddit and WallStreetBets but I did spend some time on their discord listening to their live chat on AMC, GME and DOGE. My take away is that many of these investors will be burned by a lot of the advice being given, though anyone can be giving advice on there so who even knows who to listen to - it is so chaotic. I am sure I do not need to show you the charts, but the pump has ended and the prices are falling back to reality on these stocks/coins they did their momentum/squeeze trading on.
Unfortunately, many of the new investors on there are naive and going to lose a lot of money. One of the people talking with authority on the chat was making the argument, over and over, that if a movie ticket at AMC costs $15, then their stock is a bargain at $8 - lol. The ones who were yelling at people to buy buy buy were the ones who were down 50% and so scared - they were desperately trying to pump it back up - so sad.
It reminds me of the days when I used to trade penny stocks - Yahoo finance message boards, ihub and Jonathan Lebed were the pumping grounds back then for the pump and dump schemes. I never got burned too bad and had a few 5-10x baggers, but a lot of times I lost and a few times I got left holding the bag trying to justify that the company was good and the price will rise to fair value at some point so why not hold.
Just be careful and don't invest more than you can afford to lose!
What is your take on the little guys ganging up and pumping stocks and coins?
Thanks for coming by,
Brian