Reddit has become one of the more popular online communities that is a breeding ground for traders and investors. It has a fairly large and dedicated following of traders, some who have spent thousands on products but then seem to lose money all the time.
Many traders on reddit are the same traders you see in the Wall Street Journal. If you search the subreddit “stocks”, you will find many traders and investors are making their fortunes trading the stock market. But even more interesting is the story of these traders.
Most of the top traders on reddit seem to make money quickly, and often look at stock market returns and price change as short term gains. Most use stock trading as a way to generate cash quickly. Even if they don’t make large amounts of money in the long run, they do take calculated risks to find the right stock. They typically trade very short term, which means that they trade stocks in only a few days or weeks.
The others who use reddit and have made money seem to be frustrated with their success. Some go into full-blown panic mode, trying to buy every new stock that comes on the market. Others will trade for a while then decide to sell out of frustration.
Those who participate in penny stocks get lucky a lot, but then some are luckier than others. The reason for the difference seems to be in their approach to trading.
One of the types of investors that find success in penny stocks is those who go in on stocks when they are cheap. These are the types that may hold their positions for two weeks, then keep them for a week or two more. When they begin to get burned, they can sell them off easily at a lower price, taking some of the loss with them.
But many traders who are frustrated with their penny stocks try to get rid of them fast. This is another type of investor that will put in hours a day, all the while learning all about every stock that comes out. They are looking for the cheapest stocks, trading them in and out of low volume for a while before finally moving on to another stock, either out of greed or because they don’t like it.
A great strength to this investor is that the stocks they are interested in are just available, without trading, so there is very little to worry about. But those looking for absolute risk in their trading will typically choose the stocks they are interested in. Either one of these types of investors can win and lose.
Other traders on reddit use reddit to generate passive income. They simply look for new stocks and trade them, without any knowledge of what the actual market trends are. They simply use search engines to find the largest trading volume and move on to those companies that make the most money.
It’s true that you can find stocks with a large amount of volume, and you may find a few winners. But the vast majority of stocks you will find will have very little, if any volume. Once again, the large amount of volume makes the chances of finding a winning stock pretty small.
There are many different philosophies on the internet. But with the ever growing popularity of trading online, it’s an interesting space for anyone looking to make a little money.