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The stock market has turned into a get rich quick scheme in the minds of many retail investors. The WallStreetBets subreddit isn't helping. They even made the c
by HenryKissinger 6y ago
The stock market has turned into a get rich quick scheme in the minds of many retail investors. The WallStreetBets subreddit isn't helping. They even made the cover of Bloomberg recently. People with little to no financial education see someone make +5,000% returns with a lucky trade or options contracts, and it becomes hard to resist the pull. WSB is the 39th most active subreddit today. At the beginning of the lockdown I overheard two people on the street - likely not finance professionals - chatting casually about stocks. That triggered a red flag in my head. If stock trading becomes a mass popular hobby, like video games and movies, I have a nagging feeling that people are in for a rude awakening.
- harryh 6y agoPeople on WallStreetBets and the like are loud but relatively few in number. They don't have enough money to significantly move the market expect in rare cases and illiquid issues.
- noitsnot 6y agoI don't frequent the sub but I saw a lot of crazy moves where people were losing money not making it.
- klyrs 6y ago> If stock trading becomes a mass popular hobby, like video games and movies... "Stock trading" is already just another form of online gambling. Novices have been doing day trading for quite a long time and it does seem to attract more people during times of volatility.
- valuearb 6y agoAnyone can pull off a hugely profitable trade and become a WallStreetBets god. This is what you do: 1) Open 20 different Reddit accounts. 2) In each of them claim to make a different crazy bet, preferably using options and “document” it. Doesn’t matter if you actually make the bet, photoshop works fine too. 3) Once the trades close, abandon all your losing accounts, and start posting photos of “your” new Ferraris and luxury yachts on your winning accounts. 4) Announce you are using your magical trading skills to open your own trading fund open to a select few redditers who wire you money first.