Business & Investment

Opinion: Reddit’s Open Letter to the GameStop Army

If you’re one of the thousands, maybe tens of thousands of people who made money from GameStop this week
GME,
-44.29%

Lamp, this is for you.

First of all, there are many celebrations if you just built a bank, especially if you cashed your profits on Thursday before 44% of your stock plunged. All free money is good, but making it by defeating hedge fund managers in their own games is especially sweet.

to see: This is the biggest short squeeze on the stock market — including GameStop and AMC

People on Wall Street say they are making a fuss about “market manipulation” with various regulators.When and where were they Billionaire trader, For example, buy bitcoin
BTCUSD,
+ 2.63%

Then go to TV and talk about pricing?

It’s funny, how is it not market manipulation when they do it, but it’s when farmers do the same?

Second: Don’t confuse luck or bull market with a genius. You are not the first person to make free money, and you are not the last. Whenever there are bubbles, someone makes it rain. The question is not how much you earn, but how much you maintain.

read: How does the GameStop story end?Trading catastrophe ghosts provide clues

I remember an avid gambler calling the Mainichi Shimbun every day looking for stock tips during the dot-com bubble 20 years ago. At some point, he rose $ 1 million from a standing start. no kidding. Six months later he broke.

I never thought I’d ever see anything as crazy as the dot-com bubble, but when I look at Bitcoin and now GameStop, I think:

enjoy. Gambling It’s a free country. But don’t forget that you are gambling. I paid off my mortgage with the money I earned from the dot-com bubble. But I was lucky. I was in the right place at the right time. And I was in time. Some of the companies I owned at the time eventually went bankrupt.

As Money Manager Peter Bennett Once upon a time, there was nothing wrong with trading. Never be confused with investment. Don’t forget to go out.

And there is a third thing that is especially relevant to regular Joe and Joanna.

I sometimes meet people who refuse to invest in the stock market. They do not own stocks or investment trusts. They don’t have a 401 (k) or personal retirement account, and if they do, they will only invest in bonds.

They consider the stock market to be a casino, a fraudulent game that exists to scam all the poor sap sucked in.

And that’s usually the same story. These people once guessed the stock. They bought hot stock chips from a friend of a friend. Or they jumped into a mania when “everyone” was doing and “everyone” was making money. And when the bubble burst, they lost a lot of money.

And then they swore: never again.

It has been very common to meet people who have had this experience over the last two decades, especially in the aftermath of the 2000 dot-com crash.

They will say “never again”.

And sadly, this unnecessary reaction has spent far more money than ever lost by guessing at Pets.com and believing in Lehman Brothers.

Instead of avoiding further losses, they lost more. Since then, they have missed the huge and steady profits of the stock market.

The last dot-com enthusiast peaked in March 2000.

Since then, S & P 500
SPX,
+ 0.98%

Index funds like SPDR S & P 500 ETF
spy,
+ 0.86%

You have quadrupled your money. Yes, really: If you put money in the S & P 500 at the absolute peak of the last complete madness and forget about it, it will rise by over 300%.

And if you invested in a truly global equity market fund in the meantime, you would have done better.Vanguard Global Equity Fund
VHGEX,
+ 0.94%

You’ve multiplied your stock six times during that period. You are up over 500%. Just to leave your money there.

Gambling is exciting. Gambling and winning are fun. Good luck. But keep in mind that this is a gambling, not an investment. Do not confuse the two. And if you end up gambling or losing, don’t spend any more money on yourself away from long-term investments.

Opinion: Reddit’s Open Letter to the GameStop Army

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D23F6BA20F9C%7D&siteid=rss&rss=1 Opinion: Reddit’s Open Letter to the GameStop Army

Back to top button