It’s not common, especially in these unprecedented times, that some news interests me as much as the GameStop story did. Some nerd on the internet made $47 million, wait, I’m a nerd on the internet, maybe I can make some money here as well.
When all I’ve been hearing about for the past year is global pandemic, ad nauseam, this news definitely piqued my interest.
I bought my $GME and and for three or four days had tabs open with Yahoo Finance, /r/wallstreetbets, a Twitter search for $GME and $AMC constantly streaming in the background when I was working, when watching TV trying to relax.
My mind was racing all the time; Revolut stopped trading $GME and $AMC, Robinhood halted buys and are only allowing sells, get the SEC involved. The first thing I checked in the morning is the after hours trading that had happened in the night.
I eventually decided that I have to back out, I took the L of a few hundred dollars and decided to move on with my life. I sold my $GME on the evening of 2nd February 2021. It was fun while it lasted. Maybe too fun.
Selling my stocks was more than a measure to prevent further loses, it freed up so much mental bandwidth that I had been spending on following all this drama.
Part of what I enjoyed about the discourse of /r/wsb is that with a lot of the comments it’s impossible to tell what is satire and what is true. That’s all well and fun but when I see people saying they are selling their car, they’re putting and extra 10k in, their last bit of cash, or they haven’t slept for 3 days. For every load of satirical comments there’s most likely a few that are true, and I can see lives being ruined in the near future.
Now the daily discussion threads come with a sticky message at the top about getting help for compulsive gambling and soon, if the past is anything to go by, there will be a sticky message at the top for suicide prevention.
I only put in what I can afford to lose, I definitely saw it as a bit of fun, and it was definitely gambling rather than investing. But when I add together the cash I could have lost, and the productivity I lost that I could have been focused of building my business where I just had charts and a social media stream open it’s not worth the hassle from me.
My completely uninformed opinion is that this was all a conspiracy by the hedge funds to get some money from the small time investors. Get everyone excited and put money in driving the price up then they dump their shares, which devalues the stock and allows them to cash in their shorts. They make billions and also a powerful statement to us small time retail investors about who really controls the market.
Small time investors will continue to buy up stock, but with the initial interest diminishing there is no way that WSB can have any influence on the market. Some people, desperate to be part of something will continue to sink their money into what they think is a good cause, disrupting Wall Street. But the only ones laughing to the bank will be the hedge funds.
I don’t know what any of that means, and the terms are probably all wrong, like I said I have literally no idea what I am talking about.
After all this drama I now vow to never look up the price of $GME ever again. Time to: