Stop Buying Meme Stocks

We all heard of them, "wall street bets". A famous reddit group with about 10 million users talking about gamestop 99% of the time. The main point of this group is to talk about stocks that are about to go bankrupt or heavily shorted and put all their money into it. No questions asked, yolo their whole portfolio into one stock. They were able to push $GME from $10 all the way to $500! Also surging Blackberry, AMC, Nokia.

But those times are over and now it's time to get serious. Meme stocks won't build wealth, but create short term success or absolutely crush your portfolio.

After $GME peaked to about $500 it went straight down to $40. About a 90% decrease. Then from $40 it surged to $260 and now it's hovering around$140 and will go down much more.

Why?

1) The company has on future.

2) Haven't profited in the last 4 years.

3) Trash company.

You can buy games by downloading them and you can buy the same stuff in the store online. CDs will be non existent in the future which will lower costs of games and will be great for gamers!

When looking for stocks you should look for companies with a great future.

Some great stocks include:

AMC

Black Berry

Just kidding, these stocks are trash.

AMC has so much competition from Netflix, Disney Plus, Hulu, etc.. Who wants to even go to the movie theater anymore? All the movies are in your hand.

Blackberry.... when was the last time you've seen someone using a blackberry? 2010? The brand is irrelevant so is the stock.

Wall street bets is very short term focus and luck.

To pick good stocks they have to be innovative. They have to create a product that changes the world. They need to have good earnings. They need to have a good management team. They need to have a product that pretty much won't die.

Then you buy and hold. It goes down, you buy more. It goes up, you watch and wait. Then continue building your possession while researching other stocks.

No need to stress, I understand looking at the red line in your portfolio can put you down, but it's part of the game. Red days create green days, don't look too much if you get upset. If you love seeing red then I suggest join wallstreetbets right now where they post their losses and brag whoever loses the most.

Anyways, wouldn't you want to cash out and have a lot of money from your investments by not doing much but being emotionally responsible. Almost every stock has gone up in a decade time, but almost no one holds a stock for a decade.

It's easy to decide to work at a job for the rest of your life, but not hold a stock for the rest of your life. Some stocks even pay you dividends, so you can have an extra source of income. One famous wallstreetbets user who has about $20,000,000 in Gamestop could put that Coco Cola with 3.15% dividend which will give him $630,000 in cash yearly! Dividends are paid quarterly so this will be a great source of income for him.

Well of course, not everyone has 20 million, but this guy does and all his money is in gamestop. He loves the stock so much, but he's not going to be too happy when gamestop gets crushed back to $10.

Along with holding Coco Cola for dividend you can also receive money from covered calls which you choose a target price for the stock to hit and sell your shares which you receive a premium.

With $20,000,000 you will receive 374,882 shares of Coco Cola. With 90% chance of the stock not hitting the strike price will net you around $15,000 a week cash. So yearly, you would have an extra $1,410,000 income not including the stock price also rising.

Check out my article for covered calls and cash secured puts:

If you want to create real wealth and make a change in your life then you for the love of God not buy meme stocks, but buy into well developed or early stage institutions which will make you more money in the long run!