On Reddit, it's incredibly easy to find a niche of people who believe the same thing as you. Do you like making out with toasters? There's a community for you to discuss which toaster has the nicest shell and to tell you you're not a weirdo.
However, echo-chambers can be extremely dangerous when investing.
After seeing the MMTLP post, it reminded me that some people need a reminder that investing in a stock isn't a 'movement' or an 'identity'.
To this day – there are STILL people who believe their shares of bankrupt SEARS will make them rich. There is a 'SEARS Forever' subreddit for these people.
To this day, there are STILL people who believe their shares of bankrupt BBBYQ will make them rich. There is a subreddit for this and even a live Youtube show.
Echo-chambers will tell you what you want to hear.
- It's not your fault, you didn't make a bad investment.
- Shadowy figures are conspiring to bring your investment down, it's not your fault.
- This investment will make us rich (soon!). Any doubt is downvoted to oblivion.
People who say anything bearish are banned. If you decide to sell your shares after something like bankruptcy is announced, well you're just a 'shill' working for the 'hedgies' and you'll be shunned.
I am not trying to victim blame here. Uneducated people can fall for this stuff simply because they don't know better and they like to be a part of a community.
But for those of you reading this who aren't too far gone into the financial Qanon, please be careful.
Remember, if your investment thesis is good, it can handle criticism from others. Don't be afraid to bring up the stocks you're invested in here to get some ideas on what others think.
And I can't believe this needs to be said, but since Hertz broke people's minds, it does need to be said, bankrupt companies are not good investments 99% of the time.
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