GameStop's Wild Ride: Trading Halted Nine Times!

Meme Stocks Are Making Waves Again!

Hold onto your hats, folks, because meme stocks just took us on a wild ride yesterday! Twitter’s “Roaring Kitty”,  the legend behind the massive 2021 short squeeze, decided to tweet this picture for the first time in three years :

And BOOM :

1) GameStop (GME) skyrocketed up 74%, and then tacked on another 21% after hours!

2) AMC Holdings (AMC) leaped 78%, with an extra 23% in post-market gains!

This drove a wave of heightened trading activity following a resurgence of interest from retail investors, many of whom were influenced by this post on social media and forums where GameStop and AMC Holdings have been popular topics.

GameStop was halted nine times due to extreme volatility, triggered by "circuit breakers." These regulatory measures pause trading when a stock's price swings exceed certain thresholds, allowing the market to stabilize and giving investors time to process information. Trading halts usually last five minutes, although this can vary with market conditions. These halts help maintain orderly trading and protect investors from excessive volatility.

What's a Meme Stock Anyway?

 A "meme stock" refers to a stock that gains significant trading volume and market attention primarily through social media hype and viral internet trends, rather than traditional business fundamentals like revenue, profit, or industry position. These stocks often experience rapid price fluctuations due to speculative trading fueled by discussions on platforms like Reddit, Twitter, and other online forums. The phenomenon became widely recognized during events like the GameStop short squeeze in early 2021, where retail investors banded together to drive up the prices of stocks that were heavily shorted by institutional investors, leading to dramatic market movements. Meme stocks are typically characterized by their high volatility and the community-driven momentum behind their trading.

And what should an investor do with all this market madness swirling around?

Nothing at all!

From my vantage point during the last meme stock frenzy, I witnessed the exhilarating highs, but the aftermath was brutal. Many people suffered financially when the excitement died down, an event so significant it even inspired a Netflix documentary!

The hard truth is most meme stocks are like empty piñatas—no real goodies inside, just lots of hype. Most of the price pumping is pure manipulation, leaving too many investors holding the bag.

 That’s why I’m popping up here to wave a big caution flag. Chasing meme stock fireworks is risky, and while you might get lucky, remember—luck loves to leave the party early!

Instead, my focus is on stocks that offer consistently high and sustainable returns. I will highlight those stocks that are poised for steady growth, explaining why I believe we're on the cusp of a robust bull market. Stay informed and make wise investment choices!