Here’s a very typical WSB tale.
Gamestop (a garbage company I’ve had in my Bear Pen for many, many months) was to announce earnings after the close on Tuesday. In anticipation of that, a young “trader” decided to put his entire account into short-dated, way-out-of-the-money calls. He was actually showing a profit on them at the time.
The other 19-year-olds inhabiting /wsb rallied around him, calling him “Legend”, although one fellow sarcastically said the stock was going to $13.
Amidst all the stupid emoticons and back-slapping, one guy – – just one – – tried to talk some sense into him. He actually took the time and trouble to articulate, using logic and good sense, why going long GME was a big mistake. He practically begged him to get out.
The original poster replied politely saying, “Very well said friend. Your analysis is spot on.”
He should have stopped there and said that he followed his advice, but instead he went on to declare, “I just think there is upside +20-30%. That’s all I need to double my money.”
So “all” he needed was for this meme stock to instantly go up 30%, and he’d be fine. That’s “all“.
Anyway, you know what happened next.
Which led to GME having the distinction of being the worst loser after-hours.
These /wsb boys never learn.
Anyway, his YOLO has netted him a $0 brokerage account, and the most remarkable thing to me is that the one guy on the board with an IQ over 80 tried very hard to get him to sell, and even though the OP absolutely agreed, he still totally ignored him.
