Welp...
I stand here today not defeated, but a little distraught. I exuded extreme confidence bias in setting out on this challenge. Fortunately or not, it would have definitely been possible to have 2x'd my money had I had part of my portfolio allocated to Gamestop.
This Week on the Market
To say this week was a weird one on the market would be an extreme understatement. I don't think I've ever spoken and written so much about a single topic in the span of seven days in my life. I am very fortunate in that I have the privilege of taking Behavioral Finance with a former CNBC correspondent and CIO to Wells Fargo Private Bank. He is obviously extremely well versed in finance as a whole, but with the current climate of social media and the ability of everyday citizens to easily invest, behavioral finance is the root of all that is going on in the market today.
With Gamestop, AMC, and others being "sentimental stocks" and investors putting money in these fundamentally unsound and declining businesses, there will inevitably be a resulting decline or possibly even crash.
The interesting thing about the so-called "Reddit Traders," Wall Street Bets among others, is that there appears to be a somewhat mob mentality - a group think of sorts. One thought influencer taps another, those two are on the same page, then a third chimes in, then gradually a group is following them en-masse - sometimes even blindly. Though evidence is still surfacing about all that went down last week, consensus point to the fact there are relatively few traders acting upon the Reddit advice who are fully informed and making a decision based on their own analysis, rather hopping on the bandwagon. This interestingly goes along with my Pondering on Going a Different Way, namely the Groupthink section as a result of influencers.
I will go ahead and share all of my thoughts on the Gamestop event in my Pondering for this week - it will basically just be a thought sink of all of my works from the past week.
Where I'm at
As of Thursday morning, I was up 10% at a whopping 110.12, however, the market slide on Friday hurt causing me to sink back down to 105.09.
Plans for Change
At this point I think it may be time to throw in the towel, so I might just hop in on Gamestop in the morning. I don't even know what to think anymore.
Trades
I picked up $15 of Zoom and $15 of Tesla at the beginning of the week - not doing too hot now. The Tesla financials for Q4 came out relatively flat and the body update on the Model S was nothing crazy. As for Zoom, their numbers won't be out for another month.
Stay tuned...
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