If you don’t already know about the furor over the gang of day traders at Reddit, then you have been asleep since the capitol riot.
I think VOX explained it best:
An army of traders on the Reddit forum r/WallStreetBets helped drive a meteoric rise in GameStop’s stock price in recent days, forcing halts in trading and causing a major headache for the short sellers betting against it and banking on the stock falling. It’s a captivating David vs. Goliath story, where David — at least on some fronts — appears to be winning.
So using social media technology, thousands of day traders took over for a few days, making purchasing and logging their activity on Reddit, shaking up the markets and forcing the hand of experienced investors and firms.
They selected a few undervalued stocks and “pumped” them up 200% or more percent. As a long-term investor it was unnerving and I reacted uncharacteristically to what was viewed as an attack on the market.
For one, I had purchased AMC at $2.00 several weeks ago, with the goal of watching it gradually rise. When the price rose to $21, then dropped, I reacted to the unexpected volatility and sold my shares. I actually felt violated because that was not my plan at all.
At the same time, I am intrigued by this class of investors, their solidarity and ability to influence financial markets. For just over six weeks, I have been trying my hand at day trading. For whatever reason, I have been unsuccessful at getting translation and training contracts so day trading was the next easiest thing (full transparency: my daily profit equates to wages of a typical day job).
Since the uproar, I have joined Reddit and am active on the WallStreetBets page. If you can’t beat ’em, join ’em.
How did this latest technology event affect your day/week? Let’s share ideas!