Welcome to Thursday Special! I hope you're all doing well in the market. ๐๐
Meme Stock Mania Continues
Meme stocks:
Those stocks that gain popularity through discussions on community forums or/and social media platforms are known as Meme Stocks. The prices of these stocks skyrocket because of a sudden increase in popularity or awareness on social media. These short-term surges are likely to reverse quickly, thus, making them more volatile as compared to other stocks. The most common characteristics of meme stocks are:
Experience rapid growth in a short span of time
Highly volatile
Generally overpriced
Most notable is $Tupperware(TUP)$, which has rallied nearly 900% from its lows set two weeks ago. The stock is squeezing on seemingly no news, and itโs still unclear when the company plans to file its delayed annual and quarterly reports. And yet, with short interest above 20% of its outstanding float, a short-covering rally is underway.
Similarly, other names are following suit. Like the 99-year-old trucking company $Yellow Corporation(YELL)$, which just filed for bankruptcy protection and shut down its operations. And others, like $American Superconductor(AMSC)$, recently joined the party.
So, I thought it would be interesting to have an open discussion here! Let's talk about your thoughts on meme stocks:
Are you a fan of meme stocks? ๐ Do you enjoy riding the wave for big potential gains, or do you lean towards a more value-based approach?
How do you approach the risks? ๐ข Do you believe in taking profits when you see an opportunity or prefer the "hodl" strategy, regardless of market fluctuations?
Have you ever invested in meme stocks? ๐ฐ If yes, what factors influenced your decision to buy in the first place?
What led you to decide it was time to sell? ๐ Was it a specific price target, market sentiment, or other factors that influenced your selling decision?
Feel free to share your personal experiences, insights, and opinions. Let's keep the discussion respectful and learn from one another! Remember, there are no right or wrong answers - it's all about understanding different perspectives.
Please tag your friends who might have interesting thoughts on this topic! Let's get this conversation going! ๐ฃ๏ธ๐ฌ
๐Prizes
Comment Rewards:
All Tigers who leave valid comments in the comments section will receive Tiger Coins but donโt copy othersโ homework hahaha.
Editor's Pick Post Rewards:
If you plan to share content over 500 characters, we strongly recommend selecting the "Also repost" button when posting a comment.
This way, your content will have a chance to be selected as a "Picked Post" and receive a reward of 200 Tiger Coins automatically! In addition, if your post gains high popularity, there's also a chance to win US$15-25 voucher rewards in our weekly "Creator Incentive Program."
Comments
1. Risk and Volatility: Meme stocks can experience rapid and unpredictable price fluctuations.
This can lead to significant gains, but also substantial losses. Investing in such stocks can be akin to gambling, and it's important to only invest money that vou can afford to lose.
2. Lack of Fundamental Basis: Meme stocks often have little connection to the actual financial performance of the companies behind them. The stock prices may be driven by factors such as online hype, social media posts, and coordinated trading efforts. Thats my 2 cents!
1. Yeah, I used to be a fan of meme stocks back in 2020 due to GME and AMC. I enjoyed riding the big spike within short period of time but the human greed will let you give back all your gain! Now I learn to stay with my fundamental and technical approach when selecting the stocks.
2. Personally, it depends on the market condition and sentiment. During a real bull run, I will just keep the profit running and if you really scare, you might set a trailing stop which is a very useful trade function. Otherwise, in a bear market, I tend to "see profit take profit", based on the profit % method or nearest resistance method. Both works well.
3. YES, I invested in AMC and GME previously due to the hot discussion with my colleagues. We enjoyed the rally but we never took profits in peak. Most of us ended up selling these meme stocks with minor losses. It's a bit too late to react.
4. As mentioned in 2, decision to sell is mainly based on TP and chart trend!
๐๐๐There is a rush of adrenaline when investing in Meme stocks! It is high risk, high rewards kind of investing, but can also be heart wrenching when the meme stocks that I have invested in crashed!
My personal experience is $DiDi Global Inc.(DIDI)$ which went as high as USD 18 and when it was delisted I had to sell at USD 1.50.
However I am still keen to get in on another wild ride but this time I would choose $ROUNDHILL MEME ETF(MEME)$ . It is currently up 67% year todate. The Top 10 holdings include $Nikola Corporation(NKLA)$ Carvana, AMC, Palantir, Nio and many more. I let MEME ETF do the hard work for me while I can sit back and relax. Investing on Meme ETF adds spice to my portfolio but it is only a small part of it. My core portfolio still consists of quality stocks that I can buy and hold for decades.
Meme stocks are fascinating but they can crash and burn just as quickly too.
@MillionaireTiger