“Degenerate Trading” WILL NOT Create Wealth
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Yeah, I can’t catch everything out there when it comes to stupidity in the investment world. I try. And listen, I’m not I’m not trying to be harsh. I’m not trying to be mean, but sometimes again, you need a little bit of tough love. And that’s just the reality. I got the same way when I coach kids. Yeah, yeah, you give positive reinforcement, but guess what?
If you’re doing something wrong, if you’re doing something wrong, if you’re not, you know, heading in the right direction, sometimes a good swift kick in the ass is the best way to go about handling things. So I learned a new phrase today was actually a story in the Wall Street Journal. Deegan or degen, excuse me, traders. That’s what they’re calling themselves now. It’s a story degenerates are swarming the stock market. A risky style of trading is roaring back in popularity driven by amateur traders who call themselves DGENs and pile into long shot trades that probably have nothing to do with conventional ways of assessing investments. Some are flinging cash at specific stocks or cryptocurrencies just to be part of a movement. Others are sticking around for the jokes and memes. Yeah, we did a bit on this.
not too long ago called financial nihilism and the direction that people are going with their money. A degen can be a noun, adjective or verb in their language shared mostly among young men. It’s a self -depreciating identity that some have traced back to the term degenerate gambler. Behind it is an ethos that values audacious bets on the market and is skeptical of investment norms.
You only live once, so why bother with traditional financial advice?
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And the article goes on talking about the online aliases and chat rooms and how they brag about buying little known digital tokens and meme stocks and highly speculative options contracts. Back when I started in the business, you had to be qualified to actually trade options. You actually had some sort of semblance of intelligence. That’s not the case.
anymore. It’s not it again, you know, you’re talking about handing, you know, leveraged futures contracts into people don’t know what they’re doing with them. And again, it causes volatility. It causes disconnects in the market. But for people that handle their finances properly, that’s all short term blips. I’ve often quoted JP Morgan.
talking about market sell -offs and issues. And he says, when markets sell off and bear markets, and I’m paraphrasing, stocks return to their rightful owners. And you guys can gamble all you want on this stuff, but it’s not going to end well. It really isn’t. I mean, sure, some of the people behind some of these movements, I’m sure that that trader’s Keith Gill,
Because again, he made himself a star. He’s doing well on this GameStop run up. You know who else is doing well too is the CEO of GameStop, who is selling out of his position as the stock goes up. And I guess roaring kitty Keith Gill is going to give some sort of talk today, some sort of web speech today, a YouTube live event. It’s slated for 12 o ‘clock.
And he put this information out and the stock went from 26 to 66. Now it’s down some 20 something percent today. I don’t even know exactly where it is in the thirties. Not to mention the fact that GameStop came out with their earnings and they were awful. They were awful and they announced that they are going to be selling more shares, diluting
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their float. None of this is good news for the stock. So what will happen again? I’m sure Keith Gill is going to tell all of now his DGENs. Remember back just a few years ago, his diamond hands don’t sell. He’s going to tell all of his DGENs to go out there and buy, buy, buy, buy, buy. Again, I can’t make this any more clear. And I know, as I said, I’m an old fuddy -duddy. Doesn’t resonate with the youth out there, right?
Everything in life that has meaning, value, and worth involves work, time, and effort. There are no shortcuts. There are no shortcuts. And this is why you’re so, honestly, this is why you’re so frickin’ stupid. Okay? This is why you’re so frickin’ stupid. You will become wealthy. You will become wealthy if you do things the right way. No, it’s not gonna happen overnight, okay? That’s a BS fantasy. You get it?
You will become wealthy if you build wealth over time, if you dollar cost average, if you do the right things, you don’t buy into fads and panics and all that nonsense. You’ll get there. Not to mention the fact you’ll give yourself financial security so you can take advantage of opportunities throughout life. Degens, degenerate gamblers. Honestly, you know, like I’m speaking another language to these you kiddos out there. Watchdog on Wall Street.com.
