Money January 28, 2021

GME Stocks

themsbun

Seeing the users over at WallStreet Bets becoming over night millionaires makes me think twice about start-up life.... I received good economics education but right now none of it makes sense -_-

I like what I do as a start-up founder but always looking for investments gets tiring. I'm happy for average Joes at WSB that change their lives around instantly but at the same time at any moment they might lose all their money if they don't sell.

I know we are indie hackers community, but what do you guys think about this?

  1. 4

    Hi themsbun,
    I am the founder of aquiloo.com an online platform for value investor and I have been looking closely at GME for the past year or so.
    never invested a dime.

    What you need to understand is that what you've seen over the past few weeks has nothing to do with investing or making money per se.
    What is happening is that gamblers are getting lucky over 2 or 3 fortunate circumstances that no-one could have predicted a month ago.
    In my opinion, the business itself is still cr*p and sooner or later its price will come back to its real value (it all depends on when these 16yo boys on Reddit will start withdrawing their gains), it has been like this for the past 200 years or so.

    If you're feeling FOMO I might suggest to take a minuscule percentage of your cash and put it on a higher shorted stock that has yet to be discovered (these short squeeze will be trendy for a while now)

    1. 1

      +1 to getting the FOMO out of your system with a small investment lol
      My favorite highly-shorted stock is MVIS. There is a subreddit dedicated to it if you want to learn about it.
      One day that short squeeze will break and you'll catch me singing and dancing in the street.

      1. 1

        I really hope so,
        good luck!

  2. 3

    I've been following this closely as well.
    It's super passionating, that short squeeze is unprecedented (almost) and looking the "average Joe" beating up this bigs funds shorting GME is nice to see.

    It's tough in these moments (if not onboard) not to feel FOMO.
    But let's be realistic, someone is gonna hold the bags and people will loose.
    Have millions of shares/options if not sold doesn't mean much.

    I'm sure some have and will become "overnight millionaires", but this is high-risks - high-rewards and here we're in gambling territory, which sometimes pays off but most of the time doesn't.
    If you look a WSB posts, they were known for "loss porn" initially.

    Hard work and skills always pays off, and reward is not only in the bank but on the personal growth and path.
    So working, learning, enjoying, making money .... investing money ... and why not gambling it a little bit ;-)

  3. 3

    I can say my stocks going up and down everyday is more than what i made from startups the past 5 years. I've pivot several times...

  4. 1

    Don't feel bad.

    WSB is gambling not investing.

    You see that they were once right but don't forget that WSB has been around for a long time. Imagine how many llans similliar to this have already failed.

  5. 1

    Not related to GME but I feel you should be investing in the market if you see an opportunity. I use upwork a lot and bought them when they were roughly 6 bucks a share. I didn't buy much but just saying, if you see an opportunity in the stock market and feel you can make a gain, do so. I still put all of my money back into my business (as I see that as the best value at the moment). Also, I plan on buying a few shares of Stripe whenever they IPO.

    Do you have any tech stocks or stocks you are familiar with that you'd like to buy?

    1. 1

      Like anastasionico said, this is not about market and economics -- it's a mixture of gambling, contract law, and a big middle finger to hedge funds (even though hedge funds are also making money out of it). As rjbrown3 points out though, I think you should be investing in things that interest you while thinking long term -- a decade can whiz by like that.

      I subscribed to Netflix in the mid-00s and knew it would do great, still remember talking with the front desk guy at the gym in 2009 about him picking up $100 worth at $10/share (worth $542 now). I was way too broke to invest any money myself.

      I've always believed in Tesla and I've always believed in Amazon and they're doing great, too. Peter Lynch, a famous investor, said it best: invest in what you know. He mentioned in his book how he was visiting his daughter in LA when he saw ate at his first Taco Bell and loved it.

  6. 1

    Money is a subject that touches everyone's life yet very few really understand it. Everyone who is reading this probably thinks they understand money well. Well, unless you are already a billionaire or on the path of being one, you would be lying to yourself.

    Stock market and these leverage options are all anything but gamble. More money is traded than exists because of these markets. No economic output is associated with the money made here. If it was "all right in the world", nobody would need bail outs. Its organised crime of the highest order, if I am to be brutally honest.

    Anyone who considers venturing out to make money without understanding the game they are playing, are bound to get REKT, because you are the oil that feeds this fire.

    Invest a certain amount to see what happens is a stupid approach to investment. It's pretty evident that you don't understand what you are doing. And hope isn't a strategy. It will fucking pay if you optimize the lowest stack of the machine - understanding money itself. And then understand different instruments of investment including the players. And once you are on that journey, then you stand to make heaps of money.

    Fun fact - Even PRO traders hope to get 60% of their trades right, which uncovers how glorious you think it is, Technical Analysis, price action etc, it's all but a gamble. But in the end of managing wealth, trading and being able to read charts is the skill you will need to have unless you would really trust someone else to do it for you and delegate that to them. Risk is too high to let someone play with your money. But nobody should try to "try their hands" in trading. You are bound to get REKT, cuz the market is designed to extract money out of new players. Smarter players extract out money out of players who are less smart than them.

    I am writing a tiny book / guide to deliver understanding of money in just 15-20 pages. It's to explain what the fuck Bitcoin really is, and in that, I explain what money is to arrive at it. Easy take - it explains money and 1 instrument: Bitcoin.

    I will put it up on pre-order shortly.
    Follow me on Twitter or add yourself to this list - https://ashfame.eo.page/k54v3

  7. 1

    Don't throw your economics education and buy lottery tickets just yet. A rocket to the moon might be a one-way ticket, you need to both catch it and open your parachute in time, but crashing is hard.

    Slow and steady wins the race. Add to that the chaotic nature of, well, nature, and you will have statistical flukes, that is just something you have to accept in life.

    (And you should read, if you are not aware, about "Survivorship Bias"!)

  8. 1

    It's a gamble. You can win big in a gamble if they stakes are high. And you can lose big too. Most of the time you don't win.

    On the other hand, building businesses (in my mind) is about creating reliable sources of income over a long period of time. Lower-risk on average, but takes more work. But once it succeeds you typically earn steady money over long term.

    Sure you could fail. But I think if you make rational decisions one after the other, you will succeed at some point (at least to the level that it pays for your bills).

    You can make money both ways, it's just about your risk tolerance. And about how much can you put in the game and lose without risking your whole livelihood.

  9. 1

    GME will crash, it's just that nobody knows if it happens tomorrow or in a few weeks/months. Some will make a lot of money, but nearly as many will also lose a lot of (maybe all of their?) money.

    Just because they own a lot of shares doesn't mean that they are rich, they yet need to sell their shares. And as soon as everyone wants to sell, the crash will be horrendous.

    So be cautious with people telling you that GME changed their lives, as long as they haven't sold their shares, they haven't won any money.

  10. 1

    I invested 100 and made like 700 euros out of it. If you are really feeling like missing out, give it a shot and invest small sums. According to WSB, AMC and NOK stocks are next. I'll invest small sums again. Just be aware that what you are seeing is just luck. Maybe the next time it doesn't work and people lose a lot of money again..

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