$10,000 in Game Stop shares a year ago now worth $500,000.

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  • Caslon
    Registered Charger Fan
    • Apr 2019
    • 3078
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    $10,000 in Game Stop shares a year ago now worth $500,000.

    GameStop was trading at about $3.74 one year ago. Due to recent events and fan input on media giants like Reddit, the stock went thru the roof trading at over $330 a share in just DAYS!. It won't last and the price will pull back considerably within days (short sellers will be back). However, do the math. $10,000 a year ago invested in GameStop shares would make your stock total worth about $500,000 now.

    Super hero Captain Hindsight is of no comfort to me thinking about it.
  • Bolt-O
    Administrator
    • Jun 2013
    • 32157
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    #2
    I had a couple of short strangles I closed a couple of days before this mad push in GME, because it basically has done nothing for months, and I was betting it would go sideways, and getting paid a little for that. If I had stayed in, it would have been a very painful loss. Short squeezes do happen when good news comes along, but this lift was all due to hedge funds betting big that GME was not worth it, and a group of reddit followers buying into it. What was reprehensible though was firms, including RobinHood, only allowing holders to sell, not buy, just to save hedge funds. Imagine those 'herd' investors piling in at $200, seeing the stock hit $500 in the extended market, then crash down to 150.

    Anyway, the lesson is never get Fear of Missing Out (FOMO) when you hear about these huge gains, as the market can take back faster than it gives, and never trade more than you can afford to lose. You might get rich, but too many lose it.

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    • captaind
      Cook This Pork Chops
      • Jun 2013
      • 4418
      • Mars
      • Ball Holder
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      #3
      I bought it as a hedge this week (because of its obvious impact it's having on the rest of the market). Made $500 bucks.

      Kind of don't have a choice right now but to use these short stocks as hedges.

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      • Caslon
        Registered Charger Fan
        • Apr 2019
        • 3078
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        #4
        Social media has changed things on Wall Street the last few days. Two small brokers with their sites having a media following had the attention of the masses almost overnight. The big stock brokers had been trying to "affect" the market that way for decades their way. I commend RobinHood ceasing trading on their popular market affecting app when it got crazy. Don't want this thing happening all the time. I'm not much on investing but short sellers will drive GameStop stock down to nothing soon. GameStop as a brick and mortar store isn't doing all that well. They might have to go online only.

        Anyone remember how high Snapple's stock skyrocketed 30 years ago within a year? Snapple's stock price was "kited" by some brokers and popular opinion at the time. Where are they now? Who drinks Snapple now? With brokers like Robinhood, that type thing can happen in hours, not a year like it took Snapple to become the darling of Wall Street brokers and skyrocketed in price... only to piddle out.

        Took a year for Snapple's "kited" stock price to rise up so fast, little social media back then. It took GameStop's stock one hour to surpass that with social media involved. It's totally taken old school Wall Street brokers and analysts by surprise. Old school got a wake up call by new school.

        Last edited by Caslon; 01-30-2021, 05:51 PM.

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