In this video I discuss how a benefit to crypto is that it is inclusive. A drawback is that it is inclusive.
There are many who enter the markets without having either the technical or, more importantly, the emotional skills to handle it. One of the challenges with the retail players taking on Wall Street with stocks like Gamestop is they are swimming with sharks.
And when it comes to shorts, they are Jaws.
▶️ 3Speak
I feel like Gamestop is one of the stories where retail actually won against Wall Street. Gamestop still operating today can also be proof of that. The stock has been dormant for a while, but seeing it rise again lately makes me wonder if Wall Street didn't learn its lesson the first time.
We will see how it goes. Of course, I make the case so are all the Wall Street firms that retail supposedly "won" against.
o.o well said llol. we are jus tthe small fish getting eaten and skinned alive :(
Summary:
The host discusses the recent events surrounding GameStop, meme coins, and the broader cryptocurrency market. He emphasizes that the cryptocurrency and trading markets are highly speculative and volatile, with many retail investors lacking the emotional control and discipline required to succeed.
The host argues that the "sharks" on Wall Street, such as hedge funds and professional traders, have a significant advantage over the average retail investor. They are able to weather temporary losses and quickly reposition themselves, while the retail investors often get caught up in the emotional rollercoaster and end up making poor decisions.
The host cautions against getting caught up in the hype and excitement of these speculative trades, as the sharks are always waiting to take advantage. He advises viewers to be more conservative in their approach, focusing on long-term investments in projects they believe in, rather than trying to time the market and chase short-term gains.
Detailed Analysis:
The host begins by discussing the recent events surrounding GameStop, meme coins, and the broader cryptocurrency market. He emphasizes that these markets are highly speculative and volatile, with many retail investors lacking the emotional control and discipline required to succeed.
The host argues that the cryptocurrency market, in particular, is "inclusive" in the sense that anyone can participate, but this is also a drawback, as many of these participants are not equipped to handle the emotional ups and downs of the market. He states that these investors often become "emotionally disconnected from reality" when it comes to the markets, expecting them to only go up and becoming distraught when there are major drawdowns or rug pulls.
The host then delves into the world of trading, which he describes as "gambling" at its core. He acknowledges that successful traders, like professional gamblers, are highly skilled at their craft and understand the risks involved. However, he warns that the average retail investor is often the "prey" in these "shark-infested waters," as they are up against the most "ruthless" players on Wall Street, such as hedge funds and short-sellers.
Using the example of the recent GameStop saga, the host explains how the retail investors may have been able to temporarily "burn the shorts," but the sharks are always waiting to pounce again. He argues that the shorts, being the true "sharks" in this scenario, are not going to be permanently deterred by a single trade, as they have the resources and experience to quickly reposition themselves and wait for the opportune moment to strike again.
The host also cautions against the involvement of other institutional investors, who may have been taking advantage of the retail frenzy for their own gain. He suggests that when these larger players decide to cash out, it could lead to a significant sell-off, leaving the retail investors holding the bag.
Throughout the discussion, the host emphasizes the importance of emotional control, discipline, and a long-term approach when it comes to investing and trading. He advises viewers to be more conservative in their approach, focusing on long-term investments in projects they believe in, rather than trying to time the market and chase short-term gains.
The host concludes by reiterating that the "house always wins" in the markets, and the retail investors need to be aware of who the true "house" is – the large institutional players and professional traders who have the resources, speed, and expertise to consistently come out on top.