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Trade Meme Stock Hype the Smart Way

The so-called meme stocks were back in the headlines this week.

You know which ones we mean: the struggling retail and entertainment stocks that most Wall Street funds shorted in 2020.

They were struggling even before the COVID-19 pandemic shut the nation down last year, making them obvious targets for Wall Street’s bearish bets.

But these names — GameStop, AMC Entertainment and BlackBerry, to list a few — were rescued by a wave of Reddit-fueled retail investors intent on taking down the short sellers.

The meme stocks, as they came to be called, reached astronomical — and unwarranted — valuations earlier this year thanks to these passionate retail investors.

And this week, GameStop, AMC, Bed Bath & Beyond and others rallied on a second wave of short-seller stomping.

For most, the rallies didn’t last long. Others managed to make the best of their own stock’s volatility. For example, AMC scored a healthy profit from investors’ optimism about its new stock offering.

Like AMC, some independent investors and hedge funds have secured their own tidy profits by braving the volatility. But many more have lost money in fistfuls betting on these highly speculative plays.

If you chase trades like these, there’s a chance you could lose more money than you make.

That’s why, in Smart Profits Daily, we play it smart — if we look into speculative trades, we go in with a well-researched plan and carefully balance risk against reward. We encourage you to do the same.

And over the past several days, Ian King and Steve Fernandez have been working hard to make sure you know how to trade meme stocks and other available investments — and exactly how you could benefit from them in the long run.

Blockchain Bonanza

This week, our writers had a lot to say about cryptocurrencies and other blockchain-based technologies … as well as a surprise look at a little-known way to invest in the electric vehicle (EV) market.

Check out this week’s articles below:

Crypto Moves Closer to Widespread Global Adoption

A decade ago, brand-new cryptocurrencies such as bitcoin weren’t taken seriously. With their security flaws and potential for misuse, nascent cryptos were risky speculative plays rather than viable currencies. But many cryptos have gotten safer and more useful over time — and everyone from big Wall Street trading desks to individual investors are finally seeing the profit potential in this asset class.

NFTs’ 2,100% Surge Is Just the Beginning

Put simply, nonfungible tokens (NFTs) are certificates of authenticity for digital goods and assets. Although most of these assets can be viewed online for free, people are lining up to purchase NFTs for their favorite online art and collectibles — sometimes shelling out millions of dollars for the privilege. Strange as it may seem, the NFT market has real staying power. Here’s why…

Lithium’s 10X Demand Surge Is a Massive Opportunity

The EV market is booming around the world, with big names such as Mercedes-Benz and Ford stepping up with their own EV offerings. This space is ripe for investing — but with so many names to choose from, it’s hard to know which EV maker will gain the most. As it turns out, your best bet in the EV market may not be an automaker at all … but a lithium miner.

AMC’s Crazy Rally Is a Moneymaking Opportunity

Not that long ago, AMC faced potential bankruptcy when the pandemic crippled the movie theater industry. In 2021, though, the stock has rallied more than 3,000% as day traders, meme traders and Reddit investors continue to buy shares at higher and higher prices. AMC’s skyrocketing valuation may seem crazy, but there’s a moneymaking opportunity here if you have the right trading strategy.

 

Best Wishes,

The Smart Profits Daily Team

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