What happened in the Stock Market????
OK ok ok… I know this stock market stuff can be confusing. So Imma try to sum things up as simply as possible.
Ok so boom... at the beginning of every year, the big-time traders($$$$) on wall street take bets against some of the worse companies in the US. This included companies like Macy's, Dillard's and Gamestop.
A few weeks ago, a popular reddit blogger(Jaime Rogozinski of wall street bets) had to out against one of the Big traders at Melvin Capital(Something over a girl I think??). He hated this guy so much that he convinced the thousands of people that follow his blog, to Buy GameStop and drive the price all the way up (knowing that Melvin Cap would lose millions). The word spread like wildfire.
Within days, Gamestop's price rose by 100% causing Melvin capital to lose Billions.
Reddit users realized that they could control stock prices by spreading the word so they all started investing in other failing stocks like $AMC (the movie theater) and $BB(Blackberry) maybe even $NOK(Nokia).
With Gamestop reaching $300 a share, the government and the SEC is now deciding to step in and control this method of stock manipulation.
Can you still make money??
With the government deciding to intervene, I personally think its too risky to invest as of 7:23pm 1-27 but anything can change. If you decide to invest, remember not to bet any money that you need(rent coming up).
The Takeaway
We can all learn a valuable lesson from today's events. If you haven't started investing.. its time to start now. Open up a brokerage( Charles Schwab, Fidelity) and start putting some money aside every month so that you can take FULL advantage of opportunities like this one. Having to rush to invest will cause you to make mistakes and lose a lot of money in the process.
Remember: Never chase trends
If today's events were difficult to understand... then chances are you would have lost money trying to invest and trade. There are always opportunities in the market.. they're just always talked about. And do not trust screenshots. Everyone claims to be a Guru, but always questions everything. (If they cannot fully explain a concept to you in a way that you can understand.. then they do not understand it themselves!) With these apps, its so easy to manipulate a screen to show ANY type of money. Do not feel like you missed a once in lifetime opportunity. I've seen way too many of these since the rise of bitcoin in 2017-18. The best thing you can do is have an account open with money already sitting in it, ready to take advantage at the right time.