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As long as it averages out you are fine. I was in GME at 33ish. I was also at 17 and I was impatient (and I really didn't know what the heck I was doing then, t
by PartiallyTyped 6y ago
As long as it averages out you are fine. I was in GME at 33ish. I was also at 17 and I was impatient (and I really didn't know what the heck I was doing then, too impatient, not that I do know now..).
I am not suggesting to do that instead of index funds, I suggest doing both, throwing a small portion of your portfolio in meme stocks before they gain traction, this is where sentiment analysis comes in, can yield very good results. As long as you get out fast enough.
By fast enough, I do not suggest chasing old returns, that is, returns like TSLA/GME. You only need to outrun the market at that particular day, do it often enough whilst throwing profits in index funds and you are getting ahead.
I am willing to bet (hah), and I will try to verify (at least in virtual) that after GME, sentiment analysis on WSB, r/stocks, r/investing and news can provide good enough yields by exploiting people's FOMO, in particular the chase for TLSA/GME returns and the belief that we are in control. The goal is to track potential trends in WSB, observe them getting traction in r/stocks and r/investing, and once they are mentioned on the news to start getting out.
- yibg 6y agoProblem with TSLA and GME is they are only meme stocks in hindsight. You may have gotten lucky on those and gotten in early enough, but that’s not a strategy. Hypothetically let’s say analyzing sentiment on some narrow range of data like WSB reliably produced outsized returns, that will very quickly self correct as people catch on. I suppose if you are the only one that has the secret sauce then sure. But if that’s the case you probably should’ve be posting it here.
- PartiallyTyped 6y ago> Hypothetically let’s say analyzing sentiment on some narrow range of data like WSB reliably produced outsized returns, that will very quickly self correct as people catch on. Any advantage is neutralized only if/when it becomes public knowledge. I am certainly not the first that came to this hypothesis, and I won't be the last. I need only to stay ahead of the curve.