Pattie Lovett-Reid: Traders beware of investing in volatile stocks

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Traders should take caution before investing in volatile stocks because regulators are watching closely, warns CTV News' Chief Financial Commentator Pattie Lovett-Reid in her column on CTVNews.ca.

HUNTSVILLE, ONT. -- GameStop has dominated headlines, become a household name, fostered water cooler chats, and cost hedge funds significant losses.

Institutional investors are pleading with the government to step in and do something. And to be fair, the trading activity has the government’s attention with Treasury Secretary Janet Yellen and the Biden administration's economic advisors watching closely.However, for some hedge funds, it might be too late. Losses are mounting.

Some trading platforms have placed restrictions on trades of highly volatile stocks, such as TD Ameritrade and Robin Hood Markets, but should they? The mob reaction in the market seems to be yet another sign bubbles are forming. Amateur investors are jumping in, in record numbers. Trading apps are exploding while the excitement mounts. Some know what they are doing and the risks they are taking; however, there are many who do not.

 

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More spoiled brat journalism

You mean hedge funds beware of shorting stocks ... especially 140% of it!!!

Classic pump and dump. Go watch Boiler Room and TheWolfofWallSt for examples.

He he he

banksters be worryin

Beware of Trudeau's corruption

Fuck the mainstream govt subsidized media, we're done listening to you

As opposed to when? Morons.

Poor people will always be poor. Next story.

Dear Pattie This is not about making money. Figure it out

Let me correct that headline for you. Traders beware of investing with the corrupt world of Wall Street where they will do anything to protect the rich.

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