So why do some stocks become unpopular on Street Fighter and become the favorite of Reddit fighters?
All of this has to do with the fact that the right number of small sellers are betting against them.
With that frustrating for Reddit people, many of them are looking at a small sale — when an investor lends a product and sells it hoping to buy it at a lower price and invest something different as a benefit – as a solid part of this game is invested to promote the value of the forest floor.
‘Paint’ the life of too much money
The term “meme stock” can be used for a period of time, but the fact is that Reddit people are sophisticated enough to understand that by storing short stocks but not too many shares for a business, there is an opportunity to help. fuel material known as small compression.
The same thing happens when small sellers rush to sell their shares because of rising prices.
The higher the short-term trend, the faster-selling stocks fall to die. So they have to buy fast to avoid losing their shirts – thus increasing the price.
If a small seller sells a commercial currency at $ 50 and sells it but the stock goes up to $ 75, that is a waste of $ 25. If it exceeds $ 100, the short is $ 50 in red, and so on. . They want to get out quickly to reduce their loss, which creates volumes.
Of course, AMC is not a “safe” product per unit area. Many can go wrong and open up the economy. Even if things go well, some argue that shares, currently more than 2,000% already in 2021, could end up quiet.
Planet of ‘monkeys’
The support of the Reddit crowd draws attention from the meme stock management team, too.
“I have high hopes for AMC’s new company,” AMC CEO Adam Aron said in a statement on his revenues last month. “Just go to Twitter, go to Reddit, go to YouTube. Read these posts. They love AMC.”
“These are not the ones who are going to be investors in AMC. These are going to be AMC customers who come to our theater and have a look at watching movies in our theater as payers. guest fees, ”he added. “So I love the idea that we have someone who is passionate, compassionate, very passionate.”
So it seems that the key to finding a product for the Reddit brand is to find companies with limited shares available for business. It is easy to promote the higher quality products.