Over the past couple of months I have dabbled in meme stock trading and have received many unexpected lessons along the way.
I went into this experience knowing full well that I was engaging in something a little out of my control. I bought two stocksâ
(ticker: CLF) and
(SDC) – which were popular on WallStreetBets, the Reddit forum at the center of the meme action frenzy. I even bought a call option on
Bed bath and beyond
A reminder: any profits I make from these transactions will be donated to the non-profit Dow Jones News Fund.
I was surprised at how emotionally bonded I have become to my trades, especially on days when my portfolio has seen wild swings. Frankly, at times I have been tempted to add more money to my portfolio to make up for some of the losses I have suffered. This reactionary instinct is exactly the opposite type of behavior Barron teaches.
Another lesson: My experiences on the Reddit forums and the Robinhood app made me realize that the retail boom seen last year is real and lasting. Does this mean that we will frequently see wild trading days where the meme-favorite stock shares
(GME) climbed to triple digits? Maybe not, but volatile times are very possible as the emboldened harvests of retail traders hope to cash in on the next big stock.
This week alone, GameStop and
(AMC) has seen stocks go downhill. Both stocks fell on Monday. For GameStop, traders were dismayed at the company’s third-quarter losses worsening, while AMC shares were under pressure due to insider selling. But retail buyers returned for good on Tuesday. Not all of Monday’s losses were recouped, but there were more buyers than sellers according to a tally compiled by Fidelity.
The meme trade turns out to be more sustainable than expected. The first names are still popular, and new favorites may appear next year.
As for me, my memes trading experience is over for now. I will always bring you new videos on my youtube channel. But when it comes to trading, I cash in my chips.
Want to see where I ended up? Watch the video above to find out.
Write to Carleton English at [email protected]