It’s been a tough few weeks for the Reddit trading community. First, they were blamed for causing a massive spike in GameStop’s stock price. Then, when the stock crashed back down to earth, they lost millions of dollars.
It’s no secret that the stock market can be a volatile place. But over the past few weeks, we’ve seen unprecedented volatility in the markets thanks to a group of amateur investors on Reddit.
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The group, calling themselves “Redditors,” began buying up shares of GameStop, a struggling video game retailer, in an attempt to drive up the stock price. And for a while, it worked. The stock price of GameStop soared from around $20 per share to over $400 per share in just a matter of weeks. But then, just as quickly as it rose, the stock price began to plummet.
As of this writing, the stock is trading at around $50 per share, well below the highs of just a few weeks ago. And while it’s impossible to know exactly how much money was lost in the Gamestop saga, it’s safe to say that millions of dollars were wiped out. So, what exactly happened? And what can we learn from this whole debacle? Well, there are a few key lessons to be learned from the Gamestop saga. First and foremost, the stock market is a risk-reward proposition.
Investors who were brave enough to buy Gamestop shares when they were trading at $20 per share have seen their investment increase by 1,700%. However, those who bought in at the top, when shares were trading at over $400 per share, have seen the value of their investment plummet by over 90%.
Second, it’s important to remember that stocks can go up as well as down. Just because a stock price has increased dramatically doesn’t mean it’s a sure thing. In fact, stocks that go up too fast are often referred to as “bubbles.” And finally, it’s important to diversify your investments. If you had all of your money invested in Gamestop, you’re probably feeling pretty discouraged right about now. But if you only had a small portion of your portfolio invested in Gamestop, the losses are much easier to stomach.
So, what’s the takeaway from all of this? Well, for starters, don’t put all of your eggs in one basket. And secondly, remember that the stock market can be a volatile place. If you’re not comfortable with taking on a little bit of risk, it’s probably not the place for you. Have you invested in Gamestop? What do you think about the whole saga? Let us know in the comments below! Gamestop isn’t the only stock that Redditors have been buying. Check out our list of the top 10 stocks that Reddit investors are buying right now.
gamestop investors who lost big
When Gamestop shares began to plummet, many investors lost big. In fact, some estimates suggest that millions of dollars were wiped out in the stock price crash. So, what can we learn from the Gamestop saga? First and foremost, the stock market is a risk-reward proposition. Second, it’s important to remember that stocks can go up as well as down. And finally, it’s important to diversify your investments.
If you’re not comfortable with taking on a little bit of risk, the stock market is probably not the place for you. But for those who are willing to take on some risk, there can be huge rewards to be had. Have you invested in Gamestop? What do you think about the whole saga? Let us know in the comments below! Gamestop isn’t the only stock that Redditors have been buying. Check out our list of the top 10 stocks that Reddit investors are buying right now.
Top 10 stocks that Reddit investors are buying right now:
1. Tesla
2. Amazon
3. Facebook
4. Apple
5. Google (Alphabet)
6. Microsoft
7. Netflix
8. Nvidia Corporation
9. Adobe Inc.
10. Salesforce.com, inc.
