Reliving The GameStop Saga From 2021 To Now - 3 Lessons To 'Get Rich' This Time
Why is this shit up 300%?
Sorry, I am a bit late on this one.
Consistent schedule going forward —Wednesdays, Fridays, and Sundays.
A new podcast episode with Daniel Bedford, the CEO of a top blockchain gaming company, dropping tomorrow. Definitely going to be a good one!
Okay, on to GameStop Madness.
I was there — I was physically on Wall St. during the GameStop madness in 2021, and we all chanted for the CEO of Robinhood, Vladimir Tenev, to go to jail after the platform blocked the trading of GME.
“In order to protect the firm and protect our customers, we had to limit buying in these stocks,” said Tenev.
Bull fucking shit. They wanted to protect their overlord hedge fund masters. That said, in the end, nothing happened.
I had $8,000 in GameStop, which went to $40,000 at one point and back to $10,000.
I remember going to sleep one night during the GME saga, and I was down $8,000. It was the hardest night of my life. When I woke up, we were back up.
It was a rush and it was very stupid.
The GameStop madness ended and hardly anyone got any richer. Here's what to learn from that saga to secure profits this time around.
Lesson 1: Bulls Make Money, Bears Make Money, Pigs Get Slaughtered
In early January 2021, GameStop stock jumped more than 822%, from $17.25 at the beginning of 2021 to a high of $159.18.
No one saw it coming - hedge funds like the now-infamous Citadel Capital got rekt.
Then GME stock dropped by nearly half, only to rise back up to $147.98 on by mid-January. It ended Jan at $313.54.
They say the purpose of analyzing price action is that every chart is a story - could you imagine if you didn't sell by March or April to 10x or 100x your gains?
Sure GME is back up now, but the easiest profits were back then.
Big trading corporations are taking advantage of the 'diamond hands' cult behavior by pumping the price up before dumping it and leaving the desperate people with no ability to make money, losing it all.
People with no skills and little money will not cash out for a 3x, nor will they cash out for a 10x.
Make your money - or your principal investment - and get out. Don't hold the bag.
You don’t ever beat the people controlling the strings.
Lesson 2: This isn't bigger than Occupy Wall St.
The 2021 GameStop mania started with stock trader Roaring Kitty's analysis, which has also sparked this month’s insane 209% rally.
Five months before GameStop popped off in 2021, Roaring Kitty analyzed GME and realized it was so oversold that a small stock rally could pinprick and bust all the short sellers.
This is all to say, like Satoshi Nakamoto this movement will have an underlying political and revolutionary ethos. Don't fall for it over a meme.
While the narrative is compelling, — I was also fully behind it too!— all it will do is leave you with the bag as people around you get rich.
Don't be like the Reddit trader who went from $35k to $5 mil and then back to $360,000. He didn’t sell at $5 mil because he wanted to hold for the brotherhood.
Lesson 3: Buy Crypto, Diversify Your Portfolio
The biggest life-changing gains happen when you commit.
As Peter Thiel, one of PayPal's creators, often says, “Diversifying too much can be a bad thing.”
Find a project or company you believe in long-term and commit to it. A meme stock or company doesn’t count.
Betting your lifesaving on a meme coin is no different from gambling, so consider investing in companies with real-world use or blue-chip crypto like Bitcoin, Solana, or Ethereum.
Sure, crypto is bleeding right now against GamesStop but that won't last.
"kek cryptocels have fun staying poor HAHAHAHHA" one Redditor said.
At this point, I just want investments that allow me to feel like I can make exponential gains without checking the price every five seconds.
Best of luck if you're gearing up for the GameStop madness round two, but I'm sitting this one out.
Thanks for reading, this isn’t financial advice ;) and PLEASE be careful.