The ‘Internet buffalo kids’ receive a bitter lesson after a crazy adventure with GameStop: Don’t be greedy!

For the group of amateur investors, the adventure with GameStop stock is a very special journey. It ends in a variety of ways, including indifference, disregard and regret.

At the beginning of their journey, some people want to be the forerunners of a revolution. Others simply wanted to get rich. But after the 2-week adventure ended, the gain was clear, some just hoping there was enough to pay the rent.

It is a common occurrence on Wall Street to win, lose and lose. However, in the last short time, the “madness” of GameStop shares has once brought a few people “to the clouds”, that aura comes after just one night.

But they also disappear extremely quickly.

At its highest point, GameStop’s share price reached $ 483 per share. To the session on Friday, shares of this company fell to only 63.77 USD. This “crazy” stock trading was fueled by a rebellion against the “whales” on Wall Street by “buffalo kids” on Reddit. However, the result is 30 billion USD on paper was blown away.

“The children of the buffalo surfing on GameStop have fallen very painfully.”

Many young investors have suffered huge losses. The perfect timing of trades is almost impossible for even the best stock picks. Therefore, “the children of buffalo” surfing on the “wave” of GameStop fell very painfully.

The only lucky person

What would you do when you were 19 and suddenly hold a quarter of a million dollars in stock? With American guy Shawn Daumer, he chose to reward himself with a dinner at Hooters restaurant.

Thanks to his high school graduation congratulations money and his winnings from investing in stocks like Tesla, on January 26, Daumer spent $ 47,000 buying GameStop shares.

Two days later, GameStop’s share price hit an intraday high of $ 483 and Daumer is holding 1,233 shares. He has made more than half a million dollars on his initial investment.

Daumer’s interest in GameStop shares stems from many others: Reddit’s WallStreetBets forum, where small and amateurs gather to make jokes, tell examples of success and even is to brag about giant holes.

“You watch people buy that stock day in and day out and understand that there’s a trend going on. And if it’s a trend, there’s only way to do it and that will make you money,” said Daumer. said when GameStop’s stock price was still rising.

But GameStop’s shares fell abruptly when trading app Robinhood and other brokers announced a series of restrictions on trading a handful of stocks that saw a spike. Daumer’s $ 200,000 potential profit evaporated almost immediately.

“My portfolio is still up 500%,” Daumer said at the time. “I’m fine”. Besides, Daumer and friends on Reddit believe that GameStop’s stock price will skyrocket once more: “GameStop’s stock price will hit $ 1,000,” he said.

But Daumer was wrong.

Last week, when stocks fell 72% in two days, Daumer started to think differently. He placed a sell order with his GameStop shares on Tuesday afternoon, and the transaction was executed Wednesday morning at $ 91.22.

He left with more than $ 65,000 in profit, double his initial investment.

But, not everyone is lucky Daumer.

“Do not be greedy”

Until now, everything was like a dream for Nora Samir. She woke up at midnight on January 27 at her home in Sydney. On the other side of the world, GameStop’s stock price skyrocketed.

Samir’s $ 735 investment in this stock the previous day has doubled. She ran downstairs, awakened her parents to show off her “trophy”.

“Nora, don’t be greedy,” her mother warned. “I need to withdraw now.”

But Samir, 24, a child health researcher at the University of New South Wales and a stock market researcher ignored her mother’s words and decided not to sell – she even went on buy more.

After investing about $ 800 more, Samir only owns more than 9 shares of GameStop. She then invested $ 1,800 in BlackBerry, the phone maker that once dominated and was caught up in the frenetic war.

“I used to be at the top,” admits Samir. “When a stock goes up, you don’t think how low it can go.”

GameStop’s stock rally didn’t last – and the drop was worse when the trading app Samir used crashed. She had no choice but to continue to hold stock while GameStop shares plummeted.

Samir sold a falling GameStop stock at $ 134. The shares she still owns according to the price of the last Friday session is worth only 528 USD. Samir has lost more than half of the money she invested in GameStop!

After this incident, Samir learned a lesson for himself: “Don’t be greedy”.

Diamond hands

Jacob Chalfant, a high school senior from Westfield, USA, is very interested in how his “diamond hands” put pressure on Wall Street hedge funds.

Chalfant has known WallStreetBets since the age of 15. Now 18, he enjoys the GameStop rally because of the pressure it exerts on companies like Melvin Capital, which have staked GameStop shares to decline.

In Reddit’s words, Chalfant’s “diamond-hard hand” will never hold back. Chalfant decided to keep the shares he bought for $ 1,035 – the equivalent of a month’s salary from his pizza shop and freelance photography business – when GameStop’s share price was trading at $ 290. / 1 share. Last Friday his investment was only worth $ 220!

“I accept the fact that I have lost money,” he said. “To be honest, GameStop’s stock will never be the same as it once was.”

But losses are also investments, Chalfant said. This has earned me “internet points” on WallStreetBets.

( Many people on WallStreetBets forums emphasized that GameStop’s stock could rise again. On the other hand, another Reddit forum opened last week where users shared stories of stock-trading losses. the code symbol is GME: GMEbagholderclub ).

Chalfant said he and other teen investors enjoy investing, and many of his friends joined GameStop just because they thought it was funny, not to make money.

Chalfant said: “We are living in a system where there is no more so-called justice and the whole world is falling apart. Nothing really matters, so we can also try to have fun when we are. here”.

Loss of thought

C. Arthur Davitt was originally a very “firm” financially. Every month, Davitt automatically transfers $ 200 into an index fund, trying to save and actively pay off his $ 35,000 debt for school.

But Davitt, 29, thinks it might be fun to get into some of the stocks that have seen dizzying gains. In the end he decided to put nearly $ 1,500 on GameStop and AMC. Currently, investment in GameStop has nearly halved and its stake in AMC has lost more than 20%.

“I’m not a gambler by nature,” he said. “This is considered as the money I have spent.”

Return to the Daumer character at the beginning of the post. This Indiana teen was one of the rare winners of the GameStop stock investment madness.

“Do you fish?” Daumer asked while trying to explain the experience.

While fishing, you feel your rope tug, it could be just a gnaw or a bite. If you wait to feel a stronger pull, you run the risk of losing a fish you didn’t know you had.

In addition to GameStop, he bought a stake in Castor Maritime – a penny stock based in Cyprus. So far, the price has increased by more than 300%.

When the reporter asked Daumer what kind of business the company was. He replied:

“I wish I could tell you. I don’t really care about those matters. I just like numbers.”

Source: NYTimes