Your Father's Stock Market is Never Coming Back

[Graybeard]

Quote:

Originally Posted by Car-Guy Paywall

Same here, I copied the URL into FireFox and used Reader Mode. I was able to get past the paywall and read the entire article.

[Graybeard]

Quote:

Originally Posted by UnrealizedPotential Most of those speculators will get burned eventually. I don't know when it will happen, but I believe it will happen. It has always happened in the past and I see no difference this time.

Quote:

Originally Posted by ExFlyBoy5 After seeing so much outrage on Twitter yesterday about "Robinhood" stopping the trades of AMC (in spite of the fact that the stoppage was done by the NYSE) I would say that there are a LOT of "investors" that have no clue as to what they are doing. They were playing Candy Crush a few months ago.

Aiden and Lakshmi will get their heads handed to them one day. We know sometimes the markets are irrational to the upside but eventually it ends and it ends in tears. When all you have ever seen in your short life is Bitcoin type growth you think that is normal, they are in for a rude awakening.

[ownyourfuture]

Everyone has a plan until they get punched in the mouth
Mike Tyson

[cxr133]

OMG.. this thread is so relevant right now. My 30yo nephew just texted me how he followed some guy on reddit or something and invested 3000 in BITCOIN today and just cashed out for 54000

he said he cold walk me through on how to do it, but historically he has trouble paying his own car payment every month.. LOL i just told him no thanks too risky for me

[steelyman]

The problem will arise as expectations of returns don’t repeat. That’s how you learn.

[audreyh1]

Quote:

Originally Posted by cxr133 OMG.. this thread is so relevant right now. My 30yo nephew just texted me how he followed some guy on reddit or something and invested 3000 in BITCOIN today and just cashed out for 54000 he said he cold walk me through on how to do it, but historically he has trouble paying his own car payment every month.. LOL i just told him no thanks too risky for me

Congrats on him for cashing out! Now if only he won’t put it all back in!

[NW-Bound]

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Originally Posted by finnski1 The authors article can be found on his website https://thereformedbroker.com/2021/0...-of-the-guard/ I follow josh occasionally.

Thanks. I went to the above link, then followed another link provided there to read the article.

I sense sarcasm in his article. I did not realize so much of the current crap was just like the dotcoms and Internet stocks of the late 90s.

It's OK with me. The kids will just have to learn the lesson by experience it themselves.

Quote:

Aiden is taking profits from Bitcoin and Tesla and GameStop and Ethereum and Polkadot and AMC and Riot Blockchain. He’s not going to take Jerry’s advice on what to do with the proceeds, either. He’s not putting some in the bank. He’s not buying any “Spider ETFs,” whatever that is. His gold, his rules. He’s buying NFTs instead. Crypto art. Fractions of Ferraris. NBA video clips...

[Perryinva]

I think he meant $5400 not $54,000. It’s volatile but not THAT volatile!

[audreyh1]

There are a few articles about the history of daytraders and many talk about the run up to the dotcom bust.

I don’t think I remember the significance of the SOES change at the time, but it sure seems awfully close to the dotcom bust.

Quote:

2000: The SOES Advantage is Eliminated Prior to 2000, one of the biggest advantages day traders had was SOES, the system that ensured that trades under 1,000 were addressed before trades over 1,000, giving an advantage to smaller traders. The system was designed to encourage individual investors to enter the market, but it eventually led to day traders having an unfair advantage. In the year 2000, the SOES was changed. The biggest change was that it eliminated the advantages for day traders. The Dot Com Bubble Bursts The changing of the SOES was one discouraging turn of events for day traders. However, soon after the SOES was changed, another devastating change took place: the dot com bubble burst. As a result, many day traders went bankrupt or lost a significant amount of their investments. Many were scared away from the profession and sought new careers. The heyday of being a day trader appeared to be over. This marked the end of a unique era of day trading. Prior to the dot com bubble’s burst, day trading was viewed like the Wild West. Day traders were looking to make a quick buck. Investors were focused on pump and dump schemes. Regulations were limited. After the dot com bubble burst, however, day trading would become much more similar to ordinary investing – it was something ordinary investors could easily participate in.

https://bebusinessed.com/history/history-day-trading/

The article also mentions that

Quote:

Day trading as a profession took another hit when, two weeks after the Barton shootings, the North American Securities Administrators Association released a report stating that 7 out of 10 day traders lose everything. They don’t just lose money overall – they lose everything they’ve invested.

Just another interesting walk down memory lane. I guess today’s stock speculators think they’ve invented something new.

[prudent_one]

Quote:

Originally Posted by MRG +++ I watched a few people whose carreer was in the fast path leave to trade. Many came back with tails between their legs to also find their fast past shifted to a slow ride.

Not long after the dotcom crash our company had a job fair to reduce the number of open jobs they were trying to fill. Some managers with openings were there to talk to applicants and I was drafted to help direct people to the right manager based on their job interest and background. So I would have to quickly scan each resume.

I still remember one guy whose resume showed 15 years at a pretty big company in town, rising from entry level to spending the last 4 years as Exec VP of manufacturing, ending a year earlier. He came right out and told me the reason he left his job was to be a full-time day trader after making some lucky investing moves that panned out, but his good fortune didn't last and he needed to get back into the workforce. That left an impression on me.

[DrRoy]

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Originally Posted by Car-Guy Paywall

Try Googling the title. I found it in the clear.

[Andre1969]

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Originally Posted by RunningBum There was kind of a similar event in the 70s TV show Barney Miller. Some guy liquidated everything to fully invest his gold, and Barney helped his wife convinced him to back out of that. I just verified the timing. That episode was aired 5/11/78. Gold hit a peak in Jan 1980 that wouldn't show again until 2008.

Funny, that Barney Miller episode was on just the other night! I never watched that show religiously, but liked it enough that if an episode caught my attention I'd usually stay tuned. I caught it towards the end, and was curious enough, that I DVRed it.

[jim584672]

They are the only generation to figure it all out, we were just all dumb. Meme stocks and crypto are the path to infinite riches!

The Gamestop thing is especially absurd. Their theories of how markets work shows they have no clue about actual facts. Elon has apparently betrayed them now because he said Doge was a hustle on SNL and crypto has been suffering since. This will end the hard way for them, as it always does in history. AMC is the next flavor of the minute.

[finnski1]

Quote:

Originally Posted by Perryinva I think he meant $5400 not $54,000. It’s volatile but not THAT volatile!

I doubt it was even $5400. At $3000 in and out the same day (yesterday ) the most it moved was about 4%. that would be a max of about $3120 or so yesterday Now I'm no expert on Bitcoin and there may be a way to use leverage somehow that I'm unaware of?

[audreyh1]

I’ll never forget the ad “He’s got money coming out the wazoo!”

E-Trade Super Bowl 2000 commercial.

https://www.youtube.com/watch?v=oftjwYmlfoA

That certainly seems like a bell ringing at the top!

[ExFlyBoy5]

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Originally Posted by finnski1 I doubt it was even $5400. At $3000 in and out the same day (yesterday ) the most it moved was about 4%. that would be a max of about $3120 or so yesterday Now I'm no expert on Bitcoin and there may be a way to use leverage somehow that I'm unaware of?

Or perhaps the amount he invested/got in return gambled was inflated a little bit? Investors gamblers do that sometimes.

[cxr133]

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Originally Posted by finnski1 I doubt it was even $5400. At $3000 in and out the same day (yesterday ) the most it moved was about 4%. that would be a max of about $3120 or so yesterday Now I'm no expert on Bitcoin and there may be a way to use leverage somehow that I'm unaware of?

Yeah nevermind getting the details now . the text was over IG i guess his account got hacked and he got scammed and im trying to figure out how much money he actually lost

i dont know the whole scam but seems like a PONZI scheme he invested some money with somebody online. they deposited 3,000 into his account but told him he would have immediate access to 54000. i dont know what happened from then on but it seems like he went to the bank and may of taken about 8-12K cash and turned it into bitcoin and sent it off

[ExFlyBoy5]

Quote:

Originally Posted by cxr133 Yeah nevermind getting the details now . the text was over IG i guess his account got hacked and he got scammed and im trying to figure out how much money he actually lost i dont know the whole scam but seems like a PONZI scheme he invested some money with somebody online. they deposited 3,000 into his account but told him he would have immediate access to 54000. i dont know what happened from then on but it seems like he went to the bank and may of taken about 8-12K cash and turned it into bitcoin and sent it off

Oof...that's a bad deal. This is a great example of what crypto is REALLY good at doing...getting people ripped off.

[FIREarly]

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Originally Posted by USGrant1962 The Robinhood crowd is no different than the Dot.com bubble, IMO. E-trade had the Robinhood role at the time, I had an E-trade account

Buy Gamestop?
Buy AMC?
Buy Dogecoine?
Obviously only right before positive tweets about it from Elon M.

[CardsFan]

Quote:

Originally Posted by FIREarly Buy Gamestop? Buy AMC? Buy Dogecoine? Obviously only right before positive tweets about it from Elon M.

Time to sell everything! Just kidding.

But I saw a neighbor at the pool this weekend, and he was touting AMC because his friend with the tattoos (his words) told him it would run up. And it did, and came back down, and ran up a little.

This guy is not dumb. He is a high school teacher (not that they are mutually exclusive).

Just a thought. When the novice investor at the pool says BUY, maybe I will just sit pat.