Meme stock 2024, June 18 to September 18, trends show that
meme stocks have surged in popularity once again, with increased trading
activity among retail traders, according to Capital.com data.
Notably, Trump Media & Technology Group Corp (DJT),
which is primarily owned by former US president Donald Trump, has seen
significant interest, closing at $16.50, up 2.04% on October 7, with pre-market
trading rising to $16.88, according to Nasdaq.
Blue-Chip Stocks Surpass Meme Stocks
Despite the renewed interest in stocks like GameStop and
AMC, blue-chip stocks such as Tesla, Apple, and Coinbase have yielded better
returns for traders over the last three months, especially when paired with
stop-loss protection.
I went over to WallStreetBets on Reddit to see how they are reacting to Trump’s Truth Social $DJT stock, since people are claiming that it’s going to be the next “meme stock.”
This is what I found.
1) They don’t seem to be very big fans of the stock.
2) They think it will just… pic.twitter.com/rWg4lI9sUV— Ed Krassenstein (@EdKrassen) March 27, 2024
The analysis, based on the trading activity of 33,500 global
traders on Capital.com, reveals that while meme stocks
remain in the spotlight, they have proven less profitable than established
blue-chip companies.
Stop-Loss Usage Impacts Profits
GameStop (GME) ranked as the third most traded stock on the
platform during the summer, following Tesla and Nvidia. AMC Entertainment
Holdings Inc (AMC) also made it to the top 10 most traded stocks during this
period.
However, the trading dynamics for these popular meme stocks
indicate a cautionary tale. Less than half, 44% of all AMC trades were
profitable, while GameStop saw a modest profit rate of 51% among Capital.com
traders.
Furthermore, meme stocks exhibited the lowest adoption of
stop-loss protection, with only 13% of AMC positions and 19% of GME positions
utilizing this crucial risk management tool. Stop-loss orders are designed to
limit losses or lock in profits by automatically closing trades when prices
reach predetermined levels.
In contrast, traders who employed stop-loss orders and
focused on blue-chip stocks experienced higher profitability.
Tesla trades, for instance, boasted a 60% win rate, with 22% of those trades
implementing stop-loss protection, making it the most profitable equity trade
of the summer.
Meme stock 2024, June 18 to September 18, trends show that
meme stocks have surged in popularity once again, with increased trading
activity among retail traders, according to Capital.com data.
Notably, Trump Media & Technology Group Corp (DJT),
which is primarily owned by former US president Donald Trump, has seen
significant interest, closing at $16.50, up 2.04% on October 7, with pre-market
trading rising to $16.88, according to Nasdaq.
Blue-Chip Stocks Surpass Meme Stocks
Despite the renewed interest in stocks like GameStop and
AMC, blue-chip stocks such as Tesla, Apple, and Coinbase have yielded better
returns for traders over the last three months, especially when paired with
stop-loss protection.
I went over to WallStreetBets on Reddit to see how they are reacting to Trump’s Truth Social $DJT stock, since people are claiming that it’s going to be the next “meme stock.”
This is what I found.
1) They don’t seem to be very big fans of the stock.
2) They think it will just… pic.twitter.com/rWg4lI9sUV— Ed Krassenstein (@EdKrassen) March 27, 2024
The analysis, based on the trading activity of 33,500 global
traders on Capital.com, reveals that while meme stocks
remain in the spotlight, they have proven less profitable than established
blue-chip companies.
Stop-Loss Usage Impacts Profits
GameStop (GME) ranked as the third most traded stock on the
platform during the summer, following Tesla and Nvidia. AMC Entertainment
Holdings Inc (AMC) also made it to the top 10 most traded stocks during this
period.
However, the trading dynamics for these popular meme stocks
indicate a cautionary tale. Less than half, 44% of all AMC trades were
profitable, while GameStop saw a modest profit rate of 51% among Capital.com
traders.
Furthermore, meme stocks exhibited the lowest adoption of
stop-loss protection, with only 13% of AMC positions and 19% of GME positions
utilizing this crucial risk management tool. Stop-loss orders are designed to
limit losses or lock in profits by automatically closing trades when prices
reach predetermined levels.
In contrast, traders who employed stop-loss orders and
focused on blue-chip stocks experienced higher profitability.
Tesla trades, for instance, boasted a 60% win rate, with 22% of those trades
implementing stop-loss protection, making it the most profitable equity trade
of the summer.
This post is originally published on FINANCEMAGNATES.
