Recently, a retail investor organization called WallStreetBets (WSB for short), when GameStop (GME) was on the verge of delisting, relied on a very appealing short-squeeze plan to light the fuse for GME’s stock price to skyrocket. WSB also Relying on this century air squeeze battle to get out of the circle.
Let's start by introducing the organization.
Chamath, a well-known investor, billionaire, and one of Facebook’s startups, commented on them: “Based on my years of experience, the research done by many people on WSB is no worse than that of professional hedge fund researchers.”
Chamath, a well-known investor, billionaire, and one of Facebook’s startups, commented on them: “Based on my years of experience, the research done by many people on WSB is no worse than that of professional hedge fund researchers.”
Such a group of well-organized and highly analytical folk masters has caused a lot of turmoil in the investment market recently, and the center of the turmoil revolves around the stock of GameStop.
Overwhelming number of posts about GME in the WallStreetBets forums recently
Some people mistakenly believe that the recent surge in GME stock prices is due to retail investors blindly uniting to push up the stock price. Simply summarizing this incident as retail investors fighting against institutions is actually a bit of a generalization. According to an anonymous user who experienced the whole incident on Zhihu :
As early as July last year, a person with the ID DeepFuxxxValue (DFV for short) in the WallStreetBets community found that GME stock was severely over-shorted and there was a risk of a short squeeze, so he invested $50,000 to buy GME stock and long-term options. The stock price of GME is only 4 knives, and most people in the community have a mocking attitude towards DFV;
Later, as GME continued to rise, coupled with various reasons such as GME’s internal reforms, the lack of convincing short-selling video arguments released by Citron, and mainstream media reports, the stock price continued to rise. WallStreetBets was swiped by GME’s posts every day, and more and more Some people believe that the possibility of a short squeeze is getting bigger and bigger, calling on more people to get in the car, and hold firmly.
From the 27th to the 28th of last month, the stock price of GME once soared to $470, and the assets of DFV's personal account also rose from 50,000 to nearly 50 million, writing a "very outrageous and very passionate story".
WallStreetBets not only discovered and promoted the explosion of the US stock GME, but some community members also turned around and entered the currency circle. Last week, Dogecoin continued to skyrocket and Bitcoin reversed its weakness. Members of the WSB community also exerted a lot of strength.
Today's WallStreetBets has become one of the most popular stock and option exchange communities, with super popularity and over 7.5 million participants. Many people come here because of the reputation, wanting to dig out the wealth code and copy the story of getting rich. However, since the community has been around for many years and has already formed its own independent culture, there are many unique jargons and terms that may confuse novices. Therefore, no matter whether you have become a member of WSB or are considering joining, you should There are some terms that should be known in advance.
[ 01 ] YOLO
Full name: You Only Live Once, you only live once
It means that you only have one life, and you should live in the present and do it boldly, "If you want to get stuck, bet big", "Let go of it, assuming there is no tomorrow".
secondary title
[ 02 ] Diamond Hands 💎👋
Chinese name: Diamond Hand
It is a metaphor for holding a certain stock firmly, as firm as a diamond. If you have a pair of "diamond hands", it means that you are ready to hold on to it, not afraid of any risk or loss, not selling, holding it for a long time, waiting until the target point, and believing that you will persist until you make a profit.
secondary title
[ 03 ] Paper Hands 🧻👋
Chinese name: paper hand/toilet paper hand
Contrary to "diamond hands", if you hold stocks with "paper hands", it means that you may not be able to bear the torment of deteriorating market conditions and close your exit early, and you will not get the maximum profit.
secondary title
[ 04 ] DD
Full name: Double Down
It means to be optimistic about a certain stock and "spend all your money on the table". The stock is promising and has considerable appreciation potential;
Another layer of meaning is "due diligence", research on a specific theme, stock or the entire market, long-winded which stocks are worth betting on, there are many DD posts on Wallstreetbets.
secondary title
[ 05 ] Stonks 📈
Word Definition: Misspellings of the word Stocks
A slang term, often used when commenting on the financial loss of an investment, expressing a sense of ironic humor.
The term Stonks actually originated from the Stonks Meme, which features a bald animated character in a blue suit with his arms folded across his chest and empty eyes, looking as if he just lost a lot of money. Usually after someone makes a wrong decision and puts it together with this picture, the feeling of pretending comes out all at once.
secondary title
[ 06 ] BTFD
Full title: Buy the Fuxxx Dip, "Buy the Fucking Callback"
A kind of joke among traders, which means buying at a low price. This is actually to overcome the weakness of human nature. Human nature is to buy when the price rises and kill the price when the price falls. , and then most people became the receivers of the high point. To overcome human nature, you must use BTFD, buy down and kill up.
secondary title
[ 07 ] Bagholder
Chinese name: Bag Holder
It refers to a person who holds a specific asset and keeps depreciating until it reaches zero without letting go.
Some powerful investors can sell stocks at high points. However, more shareholders don’t know how to stop profit/loss in time, and keep holding on to the stock, watching the stock price keep falling, holding on to it, and waiting for the stock price to rise back. This is the so-called “bag hugger” ". As one reddit user put it: "I'd rather be a tech stock bearer than retail stocks."
secondary title
[ 08 ] BECKY 👱♀️
Stocks favored by urban female white-collar workers and female college students, such as Lululemon, Starbucks, etc.
Now overseas female consumers are quite influential, and they have their own exclusive place in male-dominated forums like WSB. Maybe in a few years, women will also form a strong investment force.
secondary title
[ 09 ] 🚀
This is easier to understand, it means that the stock price soars into the sky, so I don't need to explain further.
Looking through WallStreetBets, you will find that many people like to add a bunch of rockets 🚀 when posting, to express their beliefs, and they are very confident that the stocks and securities they buy will get huge returns in the future.
For example, in the DD post like the picture above, there are a lot of long-winded analysis, and then a bunch of rockets, and some people who call themselves autist replied: I didn’t read a single word of what you wrote. With such a long article and so many rockets, this stock must be good, I am all in.
secondary title
[ 10 ] Tendies 🍗
Chinese name: chicken wicker
In the stock market, Tendies refer to "profit" and "money". So, if you see someone post and say: Mortgage your house! Let's eat chicken tenders! Add a bunch of rockets to the back and you'll see what he's talking about.
The above listed are some representative terms in the WSB community. They do not make any investment suggestions, but are only for knowledge sharing. I hope they can be helpful to all retail investors.
