I don’t know about you guys, but I’m getting sick of the GameStop and WallStreetBets phenomenon. And it’s not because it’s not fascinating or worth paying attention to — it is.
I love watching TikTok, Twitter and Reddit as followers urge each other to “hold the line” on their positions and not sell. In some ways, their idealism is inspiring. When you get older, you forget what it’s like to be part of a group with big, ambitious goals that can only be accomplished by everyone banding together.
But we’re talking about investing and speculating here, not some long-lasting social or civil rights movement that can change our world for the better.
Soon enough it won’t be cool to own shares of GameStop Corp. (NYSE: GME). In fact, that train might have already left the station as GME was down another 50% by lunchtime today.
The problem with this sort of GameStop and WallStreetBets mania is it’s too easy to lose your way as an investor. The more headlines and news you see about it, the more you think… “Why didn’t I get in on this deal of the century?”
GameStop… AMC… silver… Whatever the Reddit crowd is saying is the next pump. It makes it seem like making 100%, 200% or even 300% returns over several months is never going to happen again.
Don’t allow your thinking to be poisoned this way.
I’ve had home runs, grand slams and then some in stocks that I’ve bought and offered up here on WealthPress — over the past few months.
The list goes on and on…
The point being, these types of big opportunities come and go, some faster than others. But if you focus on investing and speculating as a process — and not the mania — it can happen regularly for you. You win the long game by managing your risk and not treating investing like a one-off bet at the horse track.
Supposedly, this is all some new paradigm in investing brought about by social media and message boards. But if you read about the chaotic history of Wall Street, this is nothing new at all.
Check out my short video and let’s chat more about how the GameStop and WallStreetBets mania investing is a fad you’re better off staying away from. Then share your thoughts and comments below.
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