First off – I am not a financial advisor nor am I giving financial advice.
I’ve been on /r/wallstreetbets on Reddit for a couple of months. It was mostly curiosity seeing people brag and boast to each other about the positions they had taken. By nature, I’m a pretty risk averse person and therefore my boring retirement portfolio in a Roth IRA consists of mutual funds. There isn’t any reason to login usually as they creep up slightly and sometimes go down but year over year – the portfolio continues to grow.
One night after going to the gym, I was reading Reddit again where it seemed more and more people kept talking about GameStop ($GME) and so I figured that I had a small amount of money unallocated in my Roth and why not buy some shares. I purchased some shares at $40. I figured I would probably lose all of my money but why not have a little fun being a part of what seemed to be a movement.
The next day the stock starting going up like crazy and so I bought more shares this time at $97. Once again, I figured that it would probably bottom out but it didn’t, it kept climbing and climbing and I found myself feeding into the frenzy and started logging in to track the progress almost hourly.
A few days later, Robinhood locked all of their users out of purchasing $GME and other volatile stocks. However, I was with Charles Schwab and had no such restrictions so I sold out a smaller mutual fund holding I had and snapped up more shares at $240 this time during a dip and now I found myself watching it every 15 minutes.
The stock ended on Friday at $325 and I’m still holding all my shares and up 144% in one and half weeks which given my usual 8-10% annual growth of my boring mutual funds is unheard of. However, I’m unsure how all of this ends. Obviously GameStop is not worth $325 / share and at some point has to come crashing down. However, I feel like this is about something bigger, that the collective online army of investors are making a statement about the uneven playing field that is the financial markets.
Have any of your also entered the frenzy and if so, what are your plans?