Meme Magic turns the stock market on its head

[FarAway Sooner]

I'm coming late to this party, but just wanted to chime in.  As somebody who's worked in brokerages at the Fortune 1000, Fortune 500, and Fortune 100 levels, and as somebody who had friends running regulatory and compliance reporting on this...

A bunch of people who don't understand how the stock markets work thought they were sticking it to the man by buying a stock at 10x and then 20x what it was worth.  With one or two exceptions of particularly stupid hedge fund managers, they were wrong.  And they cost themselves TONS of money.

In theory, somebody can "short" a stock (i.e., sell it today based on a promise to buy it at a later date--at whatever the price is then--and deliver it).  In practice, virtually none of the big players ever do this without putting various risk hedges in place to manage their downside.  There were, in fact, a very small handful of firms who had done this.  When the value of the stock exploded, one or two of them got badly screwed.  Shame on them.

For the most part, none of the big players lost hardly any money on this.  Aside from those one or two firms, the people who lost money were the ones who paid 20x too much for this.

[Windigo]

Back in November/December 2021, I bought into a fracking company my brother in law is an executive VP (Engineering) in. The IPO for the stock  3 years ago was $10, I didn't buy because I feel IPO s are always over-rated. I bought in at $2 when the price of oil started to climb.

I look like a great investor with it hanging around the $4 mark now, but the truth of the matter is that I did it just so I could bust his britches as a stock holder.   >:D

[FarAway Sooner]

"Stock investments are a dish best served cold."

That is the quote, isn't it?   :wow:

As with crypto currencies or other things, it is mathematically possible to make a killing in most markets.  That said, "chasing performance" is seldom the best way to do it.  If you want to, you can carve out a little bit of your money--think of it as play money--and invest that in whatever tickles your fancy.

The real trick to getting rich is to start saving a modest amount every month when you're real young.  $200/month starting when you're 25 will earn you half a million by the time you're 65.  Wait to start saving $200/month until you're 35, and at 65, you'll have less than half as much.