How to understand and participate in this WallStreetBet shananagins. I’m poor, but holy shit to make a few bucks while bending over these fucksticks at the top gives me a half chub.
insert Dr Strange “Teach Me” meme
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How to understand and participate in this WallStreetBet shananagins. I’m poor, but holy shit to make a few bucks while bending over these fucksticks at the top gives me a half chub.
insert Dr Strange “Teach Me” meme
For this particular opportunity, I think it's a hard thing to learn without becoming poorer than when you started out. If you're buying stock, you're buying in near the top (relative to the gains that have already been made). Think of it like this, as a stock climbs in price, the higher the risk becomes for you the later you buy in. Because growth isn't infinite and it will cap out somewhere. $GME for example has seen ~135% growth in the past market day alone. You're accepting a lot of units of risk, for little potential gain, while accepting the potential for huge personal downside. You're too late to get in on the party for this one.
If you're talking about options (which is what WSB specializes in), they're complicated products that are derivatives of the underlying asset (stock), rather than the stock itself. You're dealing with contracts that dictate control of 100 shares, not shares themselves. Their pricing is complicated with it being ballparked with the Black-Scholes model here. Now, you don't actually have to understand that, I'm just trying to impart the complexity of these products and how they aren't to be fucked around with lightly.
Learn about stocks, learn how they're priced (they're mostly irrationally priced), observe the market. Open a paper (play money) trading account. TD Ameritrade is cucked as a company, but their platform, ThinkOrSwim is the industry standard for retail investors (non-hedgies). Then learn about options once you're comfortable with that and can reliably make a little here and there from stocks.
The SEC also has Pattern Day Trader (PDT) rules, that limit the number of transactions you can make in a week if you have under $25,000 (as in, five figures) in a margin account. More details here. This is about the only thing the SEC reliably enforces as well. So you can be locked into positions that will fuck you, against your will. This is why I suggest practicing with a paper account.
Do this, and you'll be equipped to jump on the next opportunity when it arises. You just missed the bus on this one.
I’m both blown away at this informed response, and also intimidated that I don’t understand a good chunk of it. I’ll have to research some of the things you posted. Thank you for the guidance
A lot of it isn't that complicated. But the finance industry is the only one I can think of outside of espionage that manipulates language. As an industry, they use words in unintuitive ways or ways that are nonsensical. For example, the basic types of options are calls and puts. Both inverse eachother. Yet the words are meant to be obscure and obtuse. Finance complicates concepts to create an illusion that only they can do what they do. And that things are "best left to professionals". When the majority of the hassle is deciphering their bullshit.
Also, the movie The Big Short is mandatory viewing for any aspiring trader. Feel free to message me if you have any questions.