This article was last updated on January 28
As everyone has probably read, heard and seen there is a major battle taking place between Wall Street and Main Street, via some heavily shorted stocks as the weapons of choice. Reddit’s r/WallStreetBets, Twitter and StockTwits were the information sharing forums for Main Street with the battle is taking place real time on Trading Apps and the Stock Exchange. Its fascinating to watch and I am rooting for Main Street after years of Wall Street greed. So much so that I decided to join the fray and a couple of days ago bought into one of the stock horses in this trading frenzy. Here is what happened:
I bought 250 AMC Shares at around $15.30 ($3,833.95). GameStop (GME) was too expensive for me and BlackBerry (BB) had run too much for me to buy after the AMC purchase. I was nervous and refreshing my stock app every 2 min as the stock prices swung wildly. I was also checking the forums non-stop and the surge of comments was nuts. People were saying to keep buying and not to sell to ensure we “squeezed” the short sellers. Others were freaking out. Then there were those people showing how much money they were making. Even if 90% of these were fake, some people were making more in 2 days then 2 years! A user called Deepvalue on Reddit, who had been posting his GME buys for several months was up $22 million from an an initial $50,000 investment. It was scary and yet exhilarating. Here is how the day ended for me:
What a day! AMC was up 300%! That was so ridiculous. I made over $1,000 in literally 3 hours. Feeling very chuffed and confident I didn’t sell and thought this run would continue. But as always, Greed got me and this is how things ended the next day,
AMC was down to $8.63 and all my profits were wiped out and I was in a big hole! What the Heck (I used much fouler language)!. Easy come easy go. I must admit I did panic a bit and sold about 100 shares at $12 – meaning a small loss. But I did keep 150 shares. Mistake or not?
So far afterhours, AMC is up 30% to $11.29 as trading apps like Robin Hood and Etrade allowed purchases to resume on these stocks after blocking it for most of the day, to the chagrin of millions of Main Street traders (that’s another story).
Did I make the right call or get caught in the frenzy?