WallStreetBets (WSB) is an online investing community composed of mainly self-directed retail investors. It is one of the most popular Reddit forums and has rapidly become a major force in the stock market, with its members applauding one another with their peculiar lingo. For many in the financial industry, WSB has been a source of bewilderment. Its members vary in experience and encompass everyone from complete beginners to experienced traders. WSB operates on the belief that an individual investor has an edge when making stock market decisions. On the forum, members swap stories, share advice, and follow each other’s moves, often utilizing leverage and making risky, speculative trades. This article will provide an overview of WallStreetBets and its members and answer some frequently asked questions.
What is WallStreetBets?
WallStreetBets (WSB) is an online investing forum focused on stock speculation and day trading. WSB was founded in 2012 and currently has over 6.8 million subscribers. The majority of the members are self-directed retail investors, which is why the forum has a distinct, unprofessional tone; members share their opinions, post memes, and joke around with one another. Followers of the forum are often referred to as “degenerates”, denoting their passion for risk-taking and their knack for making highly leveraged trades. The majority of participants are in their twenties, tech-savvy, and hold no advanced degree in finance. Rather, the forum seeks to democratize knowledge on stocks and other investments by providing an accessible place for amateur investors to learn, practice, and share information.
What is the Point of WallStreetBets?
The primary aim of WSB is to share stock market knowledge, engage with other traders, brainstorm ideas, and make decisions based on collective wisdom. The founding members of WSB realized that stock market decisions should not fall to Wall Street financial institutions, but to the individual investor. The members of the forum are united by the belief that individual investors have just as much knowledge as accredited investors and professional money managers. Discussion topics often center around stocks, commodities, and other investments, while other topics such as cryptocurrency, initial public offerings (IPOs), and options trading may also be discussed.
What Do WallStreetBets Members Do?
Members of WSB share stock tips, ask for advice, debate about the market and financial topics, post memes, and speculate about investments. The #stocks channel is the most popular one on the forum, and the discussion ranges from cryptocurrencies to commodities, to technology stocks. Members are encouraged to come up with theories, ask questions, and open up a debate when necessary. Nevertheless, pump and dump schemes and other strategies that break the law are firmly discouraged.
Q: Is WallStreetBets a Good Investment?
A: WallStreetBets is not an investment fund and therefore any money invested into the stock market due to advice from forum members is done at the investor’s own risk. WSB is a community of investors that discuss ideas and provide advice, but you should always do your own research before making any investment decisions.
Q: Are WallStreetBets Trades Profitable?
A: As with any form of investing, results will vary based on the individual. Some members have shared incredible stories of spectacular gains, however, these results are not typical and can often be attributed to luck or skill. Many members of the forum have also shared stories of losses, so it is important to remember that investing is inherently risky.
Q: Is WallStreetBets Legal?
A: Yes. WallStreetBets is an online trading forum with free speech policies, so there is no illegality associated with participating in the discussion threads. However, there are laws in place to protect against pump and dump schemes and other forms of market manipulation. It is important to understand these laws and abide by them while participating in WallStreetBets.
A recent example of WallStreetBets in action is the meteoric rise of GameStop (GME) stock. After hedge funds began shorting GME, the members of WSB quickly rallied together to buy the stock and drive up its price. Although the hedge funds were eventually successful in their mission, several members of WSB were able to close out their positions for a profit. This served as an example of the power that individual investors can have when they unify around a shared cause.
Another powerful example of WallStreetBets in action is the current mania surrounding bitcoin. Although bitcoin has been around for a long time, the members of WSB have brought newfound attention to it and some have made a lot of money off of their investments. This is due to the collective intelligence of the members, who share crucial information with one another and often urge one another to experiment with new investments. By borrowing from the wisdom of others, members are able to take educated risks that have the potential to pay off.
WallStreetBets is a unique online investing forum with members united by their passion for investing and the belief that individual investors have an edge in the stock market. On WSB, members trade advice, post memes, and debate financial topics. The community is a great resource for amateur investors who are looking to learn more about the stock market and do their own research. However, it is important to remember that investing carries inherent risks and that no investment is a sure-thing.