This Trader Made a Million in Meme Stocks ... and Then Something Went Awry
By:Eric Villa
In today's digital age, the world of trading has seen a seismic shift. One of the key players in this transformation is WallStreetBets, a popular online forum where traders share tips and discuss potential “investments.” One trader who benefited immensely from this platform is Brian, who turned his modest poker earnings into a staggering $1 million in less than 18 months.
However, Brian's journey wasn't without its fair share of struggles. He initially followed the simple strategy of buying stocks that appeared on the front page of WallStreetBets, leading to successful trades with Bed Bath & Beyond (BBBY), Palantir (PLTR), GameStop (GME), and BlackBerry (BB). But like many traders, Brian soon faced a harsh reality check.
In one instance, Brian invested heavily in a telecommunications company trading at bankruptcy levels after reading an investor's 13G filing. Despite extensive research and consultations with big investors, he found himself on the losing end when the company filed for bankruptcy. The loss was substantial, nearly 70% of his investment, and served as a stark reminder of the volatile nature of trading.
Yet, these experiences, both good and bad, have provided Brian with valuable insight and shaped his approach to trading. He has learned not to rely on biased information and recognized the need for a more strategic approach.
Tom Preston, co-founder and chief market strategist for tastylive, suggests traders like Brian define risk before committing to a trade, which helps in managing potential losses. He also advises searching for options with high implied volatility in liquid products, which can yield better returns.
Each of these strategies have become non-starter best practices for the veteran trader and prominent founder. Preston also recommended two trade ideas specifically curated to Brian’s portfolio and risk tolerance.
For Tom Preston’s full analysis of Brian’s best and worst trades—as well as a complete guide on turning dumb luck into smart money and two trade ideas curated to Brian’s portfolio and tolerance for risk, watch our full episode of Money Makeover above.
Eric Villa is a YouTube specialist at tastylive.
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