Beginner
I lost $400 on GameStop in 2021. Here’s what I’d do differently.
The trade was wrong. The lesson was right. Five years on, here is what the experience taught me.
In January 2021, I put $400 into GameStop. I had been reading r/wallstreetbets for a week. The story was loud, the screenshots were vivid, and the gains looked easy. I bought near the top, watched it fall, watched it rally, watched it fall again, and eventually sold for a loss I felt for months.
The trade was wrong. The lesson was right. Three things stayed with me.
First, I had no thesis. I had a vibe. The difference between a thesis and a vibe is whether you can write down what would have to be true for the trade to work, and what would have to be true for it to fail. I could write neither.
Second, I confused volume with signal. Loudness is not information. The fact that everyone was talking about something told me nothing about the underlying business or the price I was paying for it. By the time something is everywhere, the easy part of the move is already over.
Third, I treated a single trade as a verdict on me as a person. That is a young-investor problem and an emotional problem more than a market problem. The losses are easier to absorb when the next trade is informed by the last one rather than by the desire to recover from it.
If I were starting again, I would do exactly what StarryTrader’s LeetTrade scenarios make you do. Write down the thesis. Pick the action. Read the explanation. Repeat. The point is not to be right. The point is to build a feedback loop.
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