There's this weird "cult of personality" thing happening with random stocks now. GME, PLTR, SNDL, etc... I have no idea where it's going to go long term. The democratization of the market should be a good thing, but I have residual fear that a singular event will be capable of swaying a good chunk of retail market sentiment, and that this "mob" could be led purposely ruin something or otherwise flail madly out of control. All these bubbles popping up everywhere at once.
There's this weird "cult of personality" thing happening with random stocks now. GME, PLTR, SNDL, etc... I have no idea where it's going to go long term. The democratization of the market should be a good thing, but I have residual fear that a singular event will be capable of swaying a good chunk of retail market sentiment, and that this "mob" could be led purposely ruin something or otherwise flail madly out of control. All these bubbles popping up everywhere at once.
Bubbles keep popping up because greed is running the show right now, fueled with stimulus money. People see stocks jumping, and their friends making money, and they want in. More money pours in. More bubbles pop up... more greed... more money...
It is exactly like 1999.
And it will continue until it doesn't.
Everyone thinks they are brilliant while the market is going up. It takes a crash to remind people that they are in fact not brilliant, they were just riding a wave.
In the meantime, enjoy!
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Yep, I've been thinking about moving to a much higher percentage of cash at some point as I feel we'll see a correction at some point this year (although, the economist has had some analysis lately that shows we could also just keep pushing through the year).
But man, that's the hard part of the game. Pull out and miss possibly months of gains (time in the market vs timing the market) or wait one day too long, lose a bunch and not have tons of free cash to buy up.
Yep, I've been thinking about moving to a much higher percentage of cash at some point as I feel we'll see a correction at some point this year (although, the economist has had some analysis lately that shows we could also just keep pushing through the year).
But man, that's the hard part of the game. Pull out and miss possibly months of gains (time in the market vs timing the market) or wait one day too long, lose a bunch and not have tons of free cash to buy up.
swing scalp, and look for 10% pops. it's what i've been doing for the past 2 weeks as there has been market weakness.
and put things in cult plays, that will eat up market weakness. i.e. I was sitting on 50% cash today, until that dip, and threw it all at PLTR and SPCE. i'm up 20% on the day. View market weakness as gifts. But also play smart, and don't get into anything long if you're not certain of the market, and don't have proper risk management.
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Yep, I've been thinking about moving to a much higher percentage of cash at some point as I feel we'll see a correction at some point this year (although, the economist has had some analysis lately that shows we could also just keep pushing through the year).
But man, that's the hard part of the game. Pull out and miss possibly months of gains (time in the market vs timing the market) or wait one day too long, lose a bunch and not have tons of free cash to buy up.
Getting out has its own challenges because you will feel remorse while it continues to rise.
It is more manageable to do things is stages. If you have a target mix of 70/30 and you think things are getting a bit crazy, reduce your exposure a bit and move to 65/35. If it keeps getting crazier, move to 60/40, then 50/50, etc
Eventually there will be a correction. And at that time, you can rebuild your equity exposure.
But trying to time it, and be a hero, is not only difficult, it is often counter-productive. It is always best to set targets and then STICK TO THOSE TARGETS WHEN THEY ARE HIT. That is how you eliminate the emotions from investing.
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Getting out has its own challenges because you will feel remorse while it continues to rise.
It is more manageable to do things is stages. If you have a target mix of 70/30 and you think things are getting a bit crazy, reduce your exposure a bit and move to 65/35. If it keeps getting crazier, move to 60/40, then 50/50, etc
Eventually there will be a correction. And at that time, you can rebuild your equity exposure.
But trying to time it, and be a hero, is not only difficult, it is often counter-productive. It is always best to set targets and then STICK TO THOSE TARGETS WHEN THEY ARE HIT. That is how you eliminate the emotions from investing.
Scaling is also a big thing. and play what the market gives you.
I scale 50% on my first PT always. then 25% on the next, and hold the last 25% for the bigger move. if you try to hold it all til the top, you will get burnt more times than you'd like.
i do the same when entering a position too. if high conviction, 50% then 25% then 25%. If it's just to get exposure, 25%, 25% then 50%.
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Sold 35% of my BB. I like the company long term but think the recent spike in size is mainly up to speculation. Still hold my original investment that I will hold long-term.
Sold 35% of my BB. I like the company long term but think the recent spike in size is mainly up to speculation. Still hold my original investment that I will hold long-term.
What price did you get out at? Was happy to see it at least recovered to $23 after the drop from $26 to $21.
Scaling is also a big thing. and play what the market gives you.
I scale 50% on my first PT always. then 25% on the next, and hold the last 25% for the bigger move. if you try to hold it all til the top, you will get burnt more times than you'd like.
i do the same when entering a position too. if high conviction, 50% then 25% then 25%. If it's just to get exposure, 25%, 25% then 50%.
Definitely agree with this methodology. I usually try to sell 1/3 to 1/2 at a percentage target that I will set before I make the trade and then hold the rest to see where it goes. I find this works because I satisfy my need for a quick profit while still having a chance to realize some bigger gains.
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From what I understand, and I really don’t understand (but am going to throw money at it anyway):
- people want to stick it to Wall Street
- people want to get rich
- people buy cheap stocks en masse
- this causes short sellers to have to re-up to avoid losing out
- this balloons the stock price
- everyone then basically tries to get out at or near the peak, bringing it tumbling back down
Same thing happened with VW, I think, that is happening with BlackBerry and GameStop. There’s no real logical reason for the stocks to be going up, it’s simply a matter of people buying lots and forcing it to go up.
Again, this gained from a pretty low level understanding, but it’s the best I got.
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From what I understand, and I really don’t understand (but am going to throw money at it anyway):
- people want to stick it to Wall Street
- people want to get rich
- people buy cheap stocks en masse
- this causes short sellers to have to re-up to avoid losing out
- this balloons the stock price
- everyone then basically tries to get out at or near the peak, bringing it tumbling back down
Same thing happened with VW, I think, that is happening with BlackBerry and GameStop. There’s no real logical reason for the stocks to be going up, it’s simply a matter of people buying lots and forcing it to go up.
Again, this gained from a pretty low level understanding, but it’s the best I got.
Gamestop seems to be the one they hope is on the VW wave. Only they think wsb collectively will be the Porsche holding shares and options, controlling the squeeze. When you have some guys holding onto thousands of shares, and some guys holding onto 1 or 2 shares, it's probably not quite as clean a play as when Porsche controlled the show.
Blackberry seems based more on using their developing software to hop onto Amazon, Tesla, and Apple's coattails to be the next big tech stock, but not wanting it to take several years to slowly build and built. Just get to Tesla numbers now!
As someone who is not an investor but has bought into the r/wallstreetbets hype I found if you watch the video Fleury posted from 15:30 - 20 min he does a good job of explaining the GameStop situation in my opinion.
I think the key is that GME was heavily shorted in late 2020 and some people questioned why when the company's financials and situation with new leadership were improving. They invested then convinced others to invest which pushed the stock up and then forced shorts to cover creating a feedback loop. Now people are seeing early investors posting 1000+% gains (there is a guy with a 13 million USD position who started with only 50k in!!) and more are investing. At this point it's obviously overvalued and not surprisingly still heavily shorted so something has to give In the meantime a few big players have gotten themselves burnt!
In the meantime a few big players have gotten themselves burnt!
