Investment News Investment News
Profitable Day Trading Reddit – In January 2021, something interesting happened for the first time in history. Social media users came together and started focusing on Wall Street’s most hated companies. Then companies like GameStop, Blackberry and Nokia came back, leading to one of the biggest short squeezes ever.
In this article, we’ll look at how you can use Reddit and other social media platforms for day trading.
Profitable Day Trading Reddit
Reddit is a large social media platform started in 2005 and acquired by Conde Nast, the magazine publisher. The company has raised more than $550 million at a valuation of more than $3 billion. The platform has more than 300 million active users from around the world.
Year Old Korean Makes 43 Percent Profit Investing Stocks During The Pandemic
Reddit is relatively different from other social media platforms like Twitter and Facebook. Different because it focuses on content sharing and user interaction. In it, people follow groups they love and participate in their comments.
Trading subreddits are some of the most interesting communities on the web. And the information you can find is as diverse as it is abundant: tips to increase the effectiveness of your strategies, news from various sources that can help you evaluate securities, and discussions where users try to dispel myths, test their theories and get to the realities of trade.
That’s very nice and all, but just like everything else, there is a dark side to reddit as well. These are trolls, spammers and even scammers trying to bend the rules and mess with new members. Just like in any other social network, remember to avoid this type of shade.
It’s not always easy to create a solid feed, like a watchlist or a list of accounts to follow on Twitter. But the amount of information on the web is extremely high, and if properly filtered, it can be an invaluable source of data.
How To Make Money On Wallstreetbets Reddit
For this reason, we recommend starting with these channels and then doing your own research within subreddits. The subreddits in this list are sorted by total number of members, from most to least.
GameStop is an old-fashioned company that sells computer and video games. The company has been in decline for years as more people began to focus on cloud gaming. Its profits have fallen from more than $9.4 billion in 2011 to more than $5.1 billion in 2020. It has also gone from making more than $400 million to a loss of more than $275 million.
As a result, GameStop’s stock price has been in steep decline for years as several major shareholders rejected the company. It has also been squeezed by short sellers who believe the shares are expensive and will go down.
It’s easy to understand why GameStop has failed. Although gaming has been steadily increasing over the years, the reality is that more people have avoided GameStop. Instead, they prefer to download games from the popular stores. With Google Stadia, there is also a general transfer of physical games to the cloud.
Reddit Breaks Record For Mined Nfts The Cryptonomist
Then in January 2021, disappointed with Wall Street, many day traders in Wall Street Bets (WSB) and Day Trading forums started pumping some of the most shorted companies. GameStop was one of them.
As a result, the once boring stock became a market darling, rising from less than $20 to more than $475. The market capitalization reached more than 25 billion dollars.
After the Wall Street Bets, many short sellers went through a short squeeze. A squeeze occurs because when a stock is shorted, the maximum loss that can be made is infinite. In contrast, when you buy a stock, the biggest loss you can make is zero.
GameStop wasn’t the only company targeted by Wall Street Bets. In fact, these companies were given a name known as meme stocks. In general, this refers to companies whose stock prices are influenced by social media.
Gamestop: How Reddit Traders Occupied Wall Street’s Turf
To be fair, the concept of meme shares is relatively new. In fact, many experienced traders were caught off guard when companies like GameStop and AMC came and talked about Wall Street.
The concept of meme shares is relatively new. In this article, we’ve looked at how Wall Street Bet’s social media craze disrupted the investment world as we know it. We’ve also looked at how you can trade these stocks and some of the risk management strategies you can use to reduce risk.
Sign up for The Opening Bell to receive our weekly newsletter with actionable insights and sharpen your day trading skills with the help of our market experts and your favorite TraderTV personalities, delivered straight to your inbox every Tuesday morning.
We would love to hear from you. What is your #1 takeaway or lesson from this article? Or maybe you have a question. Feel free to leave a comment below.
How To Exploit Reddit In Day Trading (+ Best Subreddits To Join)
Your ability to open a DTTW trading office or join one of our trading offices is subject to the laws and regulations applicable in your jurisdiction. Due to applicable legal and regulatory requirements, US citizens or residents cannot open a trading office with us at this time.
Is day trading still profitable, is day trading profitable, profitable forex day trading strategy, can day trading be profitable, is options trading profitable, profitable day trading strategies, profitable trading, how profitable is day trading, profitable day and swing trading, profitable day trading with precision, is forex trading profitable, most profitable day trading strategy