How Wall Street Bets Influences The Stock Market

Any investor knows that stock pumps exist. The number one community where these pumps exist is on the Reddit page, WallStreetBets.

There are thousands of members here who do their best to encourage other investors or traders to throw their money at certain stocks because they want the price to go up and profit on it.

There have been massive waves of people who do little to no due diligence and throw their money at something hoping it will make them money.

For many, it’s resulted in losing thousands. For others, it’s paid off tremendously and made them tons of money.

The stock market has no idea what to do sometimes besides go up, and thanks to WallStreetBets, it seems as though almost anything is possible.

The Bright Side of WSB

$148,679 gain from WSB on $GME (Gamestop Stock)

From the image above, you’ll see that this person bet about $45,000 of their own money into Gamestop because a lot people were hyping it up. It turned out to pay immensely! It’s crazy how much mone you can make in the markets by simply risking some money.

The euphoria oof seeing a few bucks you put towards a trade make you boatloads of money is something that will get you hooked to trading.

It’s seeing all of these crazy gains as something easy to achieve that ends up being the most damaging for many online traders.

With the Pandemic taking place, there isn’t a whole lot to do nowadays besides watch sports, play videogames, or trade stocks. It seems as though people use their money as a former of entertainment rather than a true investment which can be incredibly dangerous for someone with little to no risk management.

On the downside, big risks could also equal big losses. And I’m talking ridiculous losses. Losses that would make you sick to your stomach and not want to eat for a few days. Losses like this.

Here, you have a trader who was killing it and brought his account up tremendously and could’ve bought a Tesla if he wanted too, but got way too greedy and ddin’t make the best decision and got burned.

You can get lucky and turn nothing into something, but you can also reverse that and lose it just as fast, in some cases even faster. The great thing about trading options is that it’s more convenient than putting more money up front for trade, but it’s just as convenient to lose it all because once contracts expire, they disappear into thin air.

Something that may have seemed like a great investment one day to make you some dough may turn out to be a tragic ending to your trading journey. Remember not to risk more than you can afford to lose.

Being on both sides of the spectrum is a crazy high. One day you feel like you’re on top of the world and nothing can stop you, then the next you feel like a failure or that trading isn’t for you.

Trading Can Be Gambling

Not a lot of people on WallStreetBets like to do their due diligence and research and would instead blindly trust strangers who say that something is going to pop off.

For those who make “Yolo” trades and throw up a prayer that something is going to double or even triple their money, some will win, and some will lose.

The majority of people lose, but for those people who win, it only adds fuel to the fire. Lives have been changed drastically for the better. And lives have been destroyed the same.

If you don’t have it in you to risk your hard earned money and potentially lose it all, then taking WallStreetBets plays probably isn't for you!

The Stocks That WSB Has Encouraged The Most

• Gamestop
• Tesla
• Palantir
• Blackberry
• iShares
• Apple
• AMD
• Nokia
• Alibaba
• Plug

These are some of the most mentioned ticker symbols within the community and more often than not, this affects the way the prices move.

My Stance on WSB

I am not against WSB by any means. I think they are an incredibly entertaining community with a lot to offer.

However, I am against people who are looking at their page for advice on how to handle their money. When you see someone make incredible gains on a stock, for instance, Gamestop, then you’ll get people who jump on the bandwagon and lose tons of money.

The way I see the stock market is that it’s a place where you should put your money in and act like you lost it already. When you are dead inside to the losses and gains, you make more rational decisions rather than irrational ones.

For those who are making tendies and cashing out big, I salute you.

For those who are risking it all to hopefully win the lottery in stocks, I pray that you’ll make good decisions and do your due diligence before putting boatloads of your money into investments you think will benefit you.

Final Thoughts

If you’re new to trading, I highly suggest joining some reliable Facebook groups like this one, or incredible stock trading communities like Haikhuu. I have gone to them for nearly a year now, and have made steady and consistent gains.

No matter how much money you have to invest, it’s better to start right now rather than not ever starting at all. There are going to be people who panic and sell at a loss, and people who hold for the long term and are passively making massive gains.

My motto is to set it and forget it, that way you aren’t overchecking oro stressing out about something that doesn’t affect your daily life.

Wall Street Bets is a great place to go for entertainment, but as far as actually being profitable and making steady consistent gains, I’d be cautious about taking their plays and putting your money towards their picks.