YOLO: The New Investment Strategy That Rakes in Millions to Young Investors, But Remains Risky

  • 📰 YahooSG
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 71%

United States News News

United States United States Latest News,United States United States Headlines

Is YOLO your investment strategy too?

by a group of Reddit users who started investing in it and attracted others to do so. The price soared tenfold from $4 in 2020 to $350 in early 2021. And though stocks eventually took a nosedive to $40 by February of 2021, the GME saga allowed some investors to make millions in short positions on its traction in under a few weeks.Needless to say, a legend was born that took on a life of its own and spread like wildfire, feeding on the hype frenzy and the trusting nature of YOLO stock investors.

Considering that, and the fact that many of them are investing borrowed funds, their life savings, or even their mom-&-pops’ money, is painting out an eerie picture of the potential consequences of what a sudden market crash or shakeup could result in. Intuition and message board posts from users pursuing their own interests are far from ideal investment consultants. When taking on the murky path of YOLO investing, one must never forget about portfolio diversification — a pillar of investment management that most young investors simply disregard.

However, if one is eager to try out YOLO investing, the first step would be to select the proper stocks. Reddit channels like Wallstreetbets are the go-to venue, where heated discussions and real-time updates can shed light on potential unicorns and gems. Doing some proper research is also vital, making sure that selected companies have high short interest and available call options, so essential for leveraged investments and bets on positive price traction.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Singapore Budget 2022: 5 Investment Themes to WatchCharting our way forward from the pandemic was the main thrust of this year's budget. The post Singapore Budget 2022: 5 Investment Themes to Watch appeared first on The Smart Investor.
Source: YahooSG - 🏆 3. / 71 Read more »

4 men arrested over purported cheating offences involving crypto mining investment scheme
Source: straits_times - 🏆 5. / 69 Read more »

Biden to prohibit trade, investment with Ukraine breakaway regions: White HouseWASHINGTON: President Joe Biden will issue an executive order soon that will prohibit economic activity between US individuals and the two breakaway regions of eastern Ukraine that Russian President Vladimir Putin
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »