#R wsb gme professional#

The next time you see a mob of people running to make quick money, think about how you can capitalize on the sensation. And, I suspect, some hedge funds adjusted their strategy to take advantage of the $GME greed, short selling at the top or selling calendar spreads to capitalize on the high option gamma. Reddit has doubled the value of their company and may now be the next big social media company. Seeking Alpha, once a boutique investment forum, has become a significant media company that charges more for a subscription than the Wall Street Journal. Most r/Wallstreetbets users have posted big losses, but there are certainly winners of the phoneme.įidelity, Robbinhood, and Schwab have seen hundreds of thousands of new users sign on for investing accounts. The same is true for the $GME short squeeze. Those that made the most money didn’t mine gold – they sold shovels. Most miners lost their shirts in the California Gold Rush. Evolving your business administration from paper check vendor payments to electronic payments is neither new nor hyped, and thus a smart investment. $GME’s rocket ship to the moon was both new and extremely hyped, thus a bad investment. The best way to tell the difference between a legitimate growth opportunity and a shiny object is based on how new and hyped-up the subject is. These resources can be squandered quickly and needlessly if you go chasing shiny objects like endless research and development projects (which sank Motorola) or “gold rush” markets nobody understands (like the dot-com bust.) The same is true for business assets – good employees, intellectual property, a strong network and market reputation. You can work and save your entire life and lose it all in a matter of days. That’s the nature of wealth: hard to gain, easy to lose. Many users at r/Wallstreetbets invested their life savings into $GME, only to lose more than 80% in the crash. Lastly, have your board of directors hold you accountable to those goals. The best exits begin by planting seeds 2 years before they end, so start early. Treat the business as your personal tax shelter, distorting their company financials to the point that no buyer trusts the company’s earnings.ĭo your research on when to get acquired and how you will get there.Focusing heavily on profitability at the expense of growth and never become large enough to be acquired.The most common exit mistakes we see are: Small businesses miss their exit opportunities too. R/Wallstreetbets did not have is a realistic plan to get out while profits were up. This is best done through forecasting and regular financial strategy meetings. You must anticipate risks and hedge appropriately. (“Stonks (stocks) only go up!” as reddit posters facetiously put it.) As a business owner, you cannot wait until someone moved your cheese to pivot. They cling to something that is working and assume it will never fail. This is a critical lesson in business: planning is important but being willing to change plans is more important.īad entrepreneurs fail to adapt.

Their only mistake was failing to face reality and get out while the profits were good. Other users planned to ride the stock “to the moon!” In reality, they both made a good run up to $483/share. the 52-week low – probably not realistic. The investors at r/Wallstreetbets planned to exit at $1000/share, a 24,900% increase vs. Here’s our top 5 entrepreneurial lessons learned by the chaos of r/Wallstreetbets: Develop a plan and be ready to abandon it

#R wsb gme professional#

As professional risk-takers who often find themselves innovating new market-shifting processes, the wins and losses of the $GME short-squeeze are a parable for starting any risky venture.

The $GME short squeeze was unprecedented in financial history, so what does it mean for society? What can we learn from it? How can I use it to make money?Įntrepreneurs have much to learn from the events of the past few weeks. Have you been watching r/Wallstreetbets? At CFOshare, my team is excessively entertained by what’s happening with $GME.