- After only 12 days on Reddit, the stock traders group, the /r/ShortSqueeze_ Army has accumulated 3 thousand members.
- The Retail Traders rally and its momentum are now spreading throughout Britain like a wildfire.
- These types of organized trading groups may be the new normal in 2021.
After only 12 days on Reddit, the stock traders group, the /r/ShortSqueeze_ Army has accumulated 3 thousand members and counting. The groups’ mission as stated within their page is simple enough, “Organizing retail traders to move together to achieve success”. These types of organized trading groups may be the new normal in 2021.
With so many new retail traders flooding into the stock market, we have to wonder how many are immediately getting organized with these trading groups in the process. A recent article published by Reuters suggests that retail trading has hit a “Frenzy” status in Europe and has even caused regulators to consider intervening.
It appears that the GME – GameStop rally event has opened a door that won’t soon be closed. The younger generation of traders today sees it as an opportunity for a side income sure, but it’s also viewed as a “retail traders movement” against a what they would call “a corrupt and manipulated market”. Targeting hedge funds as the culprits.
The Retail Traders rally and its momentum are now spreading throughout Britain like a wildfire. Freetrade trading platform which is based in Britain stated that it signed up over 160 thousand new customers in January alone. The Reddit trading madness is certainly taking the Stock Market by storm, but the question still remains, is it madness or genius?
The new Reddit trading group ShortSqueeze.Army has organized traders to vote on the best opportunity trades of high short interest stocks. They allow for members to suggest tickers of high short interest as potential targets for trading, and from the suggested tickers they conduct a weekend poll. The poll determines the top 3 stock tickers of interest to their army of traders.
This type of organization may not be what most of us are used to in regards to the old fashioned way of suggesting a stock to a friend. It is, however, an effective way to gauge the temperature of a particular stock by its level of “bull trader” interest in their polls.
Having some insight into whether or not a stock has the interest of other traders, and why it has their interest is a valuable tool to have for young traders. Thanks to social media and the insane number of next generation of traders coming on board this year, we may soon see a completely new way to go about picking stocks in 2021. However, this may not sit well with the so called “old-timers” of Wallstreet.