Another good series on Netflix, honestly highly recommended. Retail investors vs institutional investors. Imo, there wasn’t any clear winner that came out of this. Many hedge funds got screwed shorting it and lost prolly around 20billion in total.
Retail investors on the other hand, made millions with their small starting capital but fail to capitalize on their profits and ended up giving it all back. One infamous influencer (Roaring kitty) as yall probably know. Made 30-40m from a starting capital of 50k. ROI: 600x LOL. Mad shit.
This documentary has clearly reflected the bitterness of many normies with the financial system. Prolly one good take away is to NEVER underestimate the power of attention. This technically falls under the category of narrative trading.
When people think that a stock price can’t go up any further and starts shorting too early, thats when they get screwed. The main difference between retail and institutional investors is the knowledge disparity and insider information. But knowledge disparity also an edge for retail investors, because its how degen apes are born.
Truth to be told, you need degen apes that literally buys without second guessing. If you accumulate a huge amount of degen apes, that’s what you get. A game stop run. Unlike institutional investors where they have to go through numerous approval and fundamental analysis before investing a large amount, for retail investors, investing is just a click away.
Mental really LOL
I think this story further validates my thesis on taking a punt on small cap meme coins for fun. The more you understand how things work, the more you realize that fundamentals are BS. Hype and narrative is the only thing that moves prices imo. Which is why analysing price action and narrative is key.
It is defo tougher in this current market sentiments because narratives only last for 2-3 days? Remember FOAN? How that lasted for 1-2 months. You need to be extremely quick to react for you make a profit now. Additionally, the profits are a measly 5-7%, pathetic compared to the bull market imo. Which is why personally I feel that it is a waste of time to chase narrative currently. Might as well just chill, do something else, come back when the charts are cleaner and start buying aggressively.
I have a meme coin in mind, but I would keep this play to myself. Dont want anyone to get rekted lolol.
Show me a nice accumulation zone with compression of EMAs and I will be going in. Either moon or rug. Small punt, let’s see if I get the chart that I want.