This whole meme stock movement started out with gamestop have a lot more significance than just the surface level. Monetary gains right now in the current uncertain market environment in 2022, with stock selling off high inflation and rising interest rates. I cannot be the only retail trader and investor thinking man. Can we just bring back all the hype we had in 2021? It's difficult not to reminisce about all the crazy momentum runs like gamestop amc and many many other retail favorites.

I have never been so excited to wake up at 4. 00 am pacific time every single morning and run straight to my computer to get the ball rolling. So i must say here make meme stocks great again, while the retail hype seems to have died down significantly in 2022. Let's not forget the impact.

The stocks at gamestop and amc have a hat on the entire stock market and on many retail investors. Bank accounts in this video. We are taking a leisurely, walk down the memory lane and taking a look at the aftermath of the wall street bets movement and how meme stocks have forever changed the stock market, as somebody who's been day trading for more than seven years. Now i can tell you this: while history doesn't repeat itself exactly the same, it often rhymes so the next time around another stock might get hype comes around.

You can be even more prepared to profit and be prepared to smash the like button to make the stock market great again. I really appreciate all of your support and it definitely helps a lot with this channel and sponsoring all the bad jokes to start discussing this topic. We must first understand what exactly is a meme stock. Well, we know the word meme to mean something funny on the internet.

It originally came as a term used in evolutionary biology science, who would have guessed in short, richard dawkins in 1976, in talking about how people pass on their genes needed a word to describe not passing on genetic material, but instead passing on an idea, he was going To use the greek word for imitation called my meme, but he wanted something shorter that reminded people of the word gene, so he decided putting on the two words together to become mean now in modern day. Most of us know the word meme known as something funny humorous or video that was found on the internet, usually some on social media like facebook, twitter and what all the cool kids are using nowadays tick tock by the way, please make sure to follow me on Tech talk, if you haven't done that already. I just started posting a lot more videos there and that's how we ended up here with meme stocks. A meme stock refers to shares of a company that have gained the code like following online and through social media platforms.

In this case, specifically on reddit wall street beds, people on the washi bed subreddit started out, treating them as jokes and put money into these stocks, or shall we call them stunks for fun? And that's exactly what these og meme stocks like gamestop and amc were. They were for fancy cakes, however, these meme stocks gained a huge following because they were essentially imitations or copies of what you would spend your money on in real life, for example, shopping and spending time at gamestop was nostalgic for many of the 80s and 90s kids. One over here with their pokemons nintendos and video game tradings, and much like how we find memes to be funny. A lot of people put their money invested in these stocks for fancy cakes.

But little did they know these stonks were about to change the stock market and pretty much change the world in mid-2020, the youtuber persona, keith gill, aka, roaring, kitty, aka, deep effing value on reddit posted, a research on wall street beds and subsequently a viral video showing How he thinks gamestop could potentially increase from five dollars to 50 dollars a share. He explained that the stock had some of the highest short interest on wall street, meaning that it was a stock with a lot of major hedge funds, short selling it to the ground and milking every single cent out of this declining stock, because they knew just like Everyone else the gamestop was a dying company, quick reminder for those who are not familiar with short selling when you shoot a stock, you are betting that the stock prices are going to go lower because of the underlying company's business is failing. Essentially, you are betting against the stock, which is the reason big hedge fund, specifically melvin capital, was short selling gamestop, because the companies still operated as a brick and mortar business. In an age where internet-based shopping dominates the world.

Deep effing value went on to describe a short squeeze scenario where all the hedge funds, with the short positions on gamestop, will need to cover their short positions. If a short squeeze does occur, which will mean their buying to cover, will cause a massive rally in stock prices for many months, no one took dfv's research on gamestop that seriously because come on who goes to the store to buy video games anymore. Everyone expected gamestop to head to the cemetery just like blockbuster and that's what gamestop looked like in 2020. However, as the gamestop stock price, slowly crept up from 4 dollars to 10 and setting higher lows near the end of 2020, as the stock had gained more and more following and washi bets.

Remember many people started out thinking about this thesis and this stock as a joke, but the prices don't lie more and more retail investors are drawn into this meme stock and guess what this meme was turning into a reality in january of 2021, the short squeeze that Deep fm value said could happen, actually happened. Gamestop shares erupted to nearly 500 a share amidst the frenzy of hedge funds, covering their short positions and formal buyers buying the breakout straight to the moon. What happened immediately during and after the gamestop short squeeze was some of the wildest times i've ever seen in a stock market and i've seen a lot over the last seven years with all the crazy short squeezes. As you can see, it's not an exaggeration to say these og meme stocks like gme change the stock market.

It also woke up many subsequent runs in other meme stocks like amc, bbby and ok, and the list just goes on and on, while not every retail investor made money because, as we all know, many are still holding on to these meme stocks as they slowly declined. At the end of 2021 and now 2022 - and i personally know many people who are still holding on my ex-husband mike bagholder, will be one of those people. However, this whole meme stock movement started out with gamestop have a lot more significance than just the surface level. Monetary gains there's always been this division in the stock market between the big dogs and the retail investors.

The big dogs are the hedge funds and the market makers that have billions of dollars. They have so much power on wall street that they could manipulate the market and make it do whatever they wanted to do with a naked short selling. The activists investing coordinating prs and the list just goes on and on because they have the monopoly or close to in a stock market. The retail investors are like you and me: we don't work on wall street in some high-rise offices.

For some fancy financial firms. We are at home trying to carve out a life for ourselves, and most of us study invest in trade in a stock market part-time and often we are subject to market manipulation and lost some of our money when the big dogs bully their way around. We are often known as the chumps in the room with this meme stock movement so began this kind of david and goliath story. The subreddit wall street bet rallied the little guys across the globe and wanted to stick it to the big dogs, the goliaths in the stock market and none of the big dogs thought this was going to work.

Nobody took retail, investing and trading seriously until after the game stopped short squeeze even citron. Research, often known for the profits like bearish predictions in the stock market, quickly dismissed this movement and called these little guys the suckers at this poker game. Instead, what happened is that gamestop started surging as a little guys, the retail investors started to pile on shares of gme in an attempt to make the hedge funds cover their short position, these retail investors and traders. They were doubling quadrupling their positions by the day, enchanting diamond hands and making it rain attendees man they make my reigning lamborghini jokes shy in comparison.

I got ta give it to these people i'll pick fried chicken over my imaginary lambos any day. What transpired really changed? The stock market forever - and here is the aftermath of the retail movement. Well, citron research, the short-selling oracle of wall street shut down its short-selling publications online as a result of the aggregated losses from gamestop short melvin capital, one of the most elite hedge funds had to be bailed out by two other firms. However, i know what the real million dollar question is here: have retail traders taken over wall street? Unfortunately, no far from it, the big dogs they'll sit in the doghouse high up there on wall street.

But what did happen is that wall street learned it could no longer afford to dismiss retail traders and investors as the buzzing fly in the room. They should learn some expensive lessons and there is strength in numbers and persistence. The original washi bed subreddit had more than quadrupled in size from less than 2 million prior to 2020 to over 11 million. Now, retail traders and investors have forever solidified their place on wall street and are now recognized as a force to be reckoned with.

As for the meme stocks, where are they now one year later? Well, sadly, they are in the toilet, where most of their fundamentals truly belong, but many stock prices are still a lot higher than they were before the movement. Thanks to the diamond hand, investors, even though gamestop stock price had dropped quite far from 500. It's still 900 percentage points higher than before its rally. As for amc, it had a high of 75 and it's now settling down around 15 as we speak, which is still over 500 percent since the beginning of 2021..

Most people saw this time period as a revolution and that's exactly what it was a movement, a statement that retail will not be ignored anymore. However, this movement should not be taken as good financial advice. Let's keep in mind that gamestop and amc rallies was just part of a movement and diamond handing is not real trading nor investing, while the hoping and holding strategy worked for a short period of time. It's not a repeatable strategy, day after day and year after year.

For professional traders, if you would like to see these momentum stocks make a comeback in 2022, remember to smash the like button to make these meme stocks great again. Hopefully you really enjoyed this brief summary of the wall street bets movement and the aftermath one year later. Thank you guys so much for watching. As always, i'm the humble trader and i'll see you guys next time you.