How profitable is buying "meme stocks"?

Discussion in 'Trading' started by cole_, Feb 8, 2018.

  1. cole_

    cole_

    I mean hot stocks that are mentioned a lot on retail trading forums like ET and r/wallstreetbets especially. Stocks like MU, SUNEQ, AMD, and RAD. historically how profitably would it be if you had bought meme shares and held for 10 years?
     
  2. nickynoes

    nickynoes

    I doubt anyone has that kind of data on hand but if you are interested in finding out I suggest you do the research yourself.

    But just to add something to the topic, buying and holding "hot stocks" is usually a bad idea since they usually attract amateur investors which will all flee at the first sign of weakness, crashing the stock.

    You probably could trade the momentum and make a good amount of it, as long as you exited before any probable crash.
     
  3. JackRab

    JackRab

    Very profitable... it's called hyping the shit out of a dead stock, so everyone with one braincell jumps on the bandwagon... like bitcoin. Or most penny stocks...

    The question is... when do you get out, or when does it still make sense to get in...

    It's basically a game of hot potato hot potato. Technical term: Pump-and-Dump
     
    vanzandt and Xela like this.
  4. 777

    777

    5 to 10 years I would bet more on mean reversion stocks, in general.

    Meme stocks would be highly populated with momentum which seems to carry to some small degree up to 12 months out, or a little more

    However, in real life I would use neither as a primary reason.