Some of the biggest financial news ever has been making headlines and rocked the investment world.
What I’m talking about is the battle between small retail traders who’ve been jumping in on heavily shorted stocks like GME – Gamestop. It went from under $10 a share to almost $500 a share in just a week!
Institutions holding short positions were getting crushed and accumulating losses in the billions almost overnight. Then they starting crying foul and some of the brokers prevented shares to be bought which would have driven the price even higher.
Restricting the sale of stocks like this arbitrarily is illegal but non the less it drove GME down to near $100 in less than an hour. Now it’s back near $325. Without a doubt some of the craziest price gyrations I’ve ever seen!
This is the classic story of the retail traders being the David against the Goliath hedge funds.
The institutions are often behind financial debacles and end up getting financial bailouts. Once again they started this latest thing and don’t like it when the little guys are beating them. Anyway I did a video on Friday that shared my thoughts on how to trade these type of stocks.
I do have some skin in the game with shares of Gamestop and Nokia. Even if you don’t trade stocks there’s something to be learned as there are always parabolic markets and speculation frenzy whether it’s in metals. Bitcoin or housing etc…
I hope you pick up some trading tips… Enjoy the rest of your weekend, Jeff
P.S. I’d really appreciate if you could give the video a Thumbs Up and subscribe to my channel. Cheers!