{"id":444644,"date":"2022-05-09T20:43:39","date_gmt":"2022-05-09T17:43:39","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/day-traders-profits-from-meme-stock-frenzy-have-been-erased-report\/"},"modified":"2022-05-09T20:43:39","modified_gmt":"2022-05-09T17:43:39","slug":"day-traders-profits-from-meme-stock-frenzy-have-been-erased-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/day-traders-profits-from-meme-stock-frenzy-have-been-erased-report\/","title":{"rendered":"#Day traders&#8217; profits from &#8216;meme stock&#8217; frenzy have been erased: report"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23e4be59c4e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23e4be59c4e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/day-traders-profits-from-meme-stock-frenzy-have-been-erased-report\/#%E2%80%9CDay_traders_profits_from_%E2%80%98meme_stock_frenzy_have_been_erased_report%E2%80%9D\" >&#8220;Day traders&#8217; profits from &#8216;meme stock&#8217; frenzy have been erased: report&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CDay_traders_profits_from_%E2%80%98meme_stock_frenzy_have_been_erased_report%E2%80%9D\"><\/span>&#8220;Day traders&#8217; profits from &#8216;meme stock&#8217; frenzy have been erased: report&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Reddit<\/a>-obsessed retail stock traders have lost all of their gains since the the pandemic began as the government stimulus that kept markets afloat comes to a screeching halt, according to a report. <\/p>\n<p>Retail traders have been hit the hardest by the recent downturn in stocks, having on average lost all the gains they made when markets were at their apex, according to Morgan Stanley, which looked at retail traders who entered the market for the first time in 2020 and created a basket of their favorite stocks.<\/p>\n<p>While retail traders outperformed the S&amp;P 500 from May 2020 to May 2021, their performance has sharply fallen off \u2014 and flatlined this year through March 2022 even as the S&amp;P 500 made gains during the beginning of the year.<\/p>\n<p>A similar study involving a Goldman Sachs basket of retail stocks showed identical results. The retail stock nearly doubled in value from January 2020 to November 2021 but dropped 32% this year. Likewise, retail traders\u2019 buying power has also faded. In April, day traders bought just $14 billion in stocks \u2014 the second slowest buyup in nearly two years.<\/p>\n<p>And the Federal Reserve\u2019s tightening is largely to blame for the drop-off, analysts say.<\/p>\n<p>\u201cA lot of these guys started trading right around COVID so their only investing experience was the wacked-out, Fed-fueled market,\u201d Matthew Tuttle, chief executive officer at Tuttle Capital Management LLC<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-05-08\/day-trader-army-loses-all-the-money-it-made-in-meme-stock-era\">, told Bloomberg<\/a>. \u201cThat all changed with the Fed pivot in November, but they didn\u2019t realize that because they have never seen a market that wasn\u2019t supported by the Fed\u2026 the results have been horrific.\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/013121gamestop28CS.jpg?w=1024\" alt=\"gamestop\" class=\"wp-image-22192170\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/013121gamestop28CS.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/013121gamestop28CS.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/013121gamestop28CS.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The price of pandemic darling <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop has plummeted over the last year.<\/figcaption><figcaption><span class=\"credit\">Christopher Sadowski<\/span><\/figcaption><\/figure>\n<p>Companies that hit dizzying \u2014 and evidently unsustainable \u2014 heights during the pandemic thanks to retail investors snatching up the like of GameStop and AMC are now falling to their pre-pandemic valuations.  <\/p>\n<p>Day traders who have organized on Reddit\u00a0to push so-called meme stocks\u00a0including AMC, Gamestop and BlackBerry higher are out of cash as markets plunge and the government is done issuing stimulus checks.<\/p>\n<p> AMC stock, which was selling for under $3 per share two years ago, hit a high of more than $60 per share last June. Since it\u2019s high the stock has come crashing down to trade around $12 per share.<\/p>\n<p>GameStop, which was trading under $4 per share two years ago jumped to a high of more than $344 before falling back close to $100.<\/p>\n<p>But what goes up must come down.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/gamestop-stock-surge.jpg?w=1024\" alt=\"robinhood\" class=\"wp-image-22192247\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/gamestop-stock-surge.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/gamestop-stock-surge.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/gamestop-stock-surge.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Robinhood, which enabled much of the crazy pandemic is seeing its own stock fall.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>And even Robinhood \u2014 known for its role in the \u201cReddit Rally\u201d retail trading phenomenon \u2014\u00a0which went public\u00a0at $38 a share in July has taken a more than 70% nose dive over the last year.<\/p>\n<p>Robinhood\u2019s stumble is a stark illustration that both meme stocks and the platform that powered the trading is out of fashion.<\/p>\n<p>It\u2019s a dramatic turn of events for \u201cmeme stocks\u201d which were once so heated the Securities and Exchange Commission said it was looking into\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/us\/us-sec-says-observing-market-meme-stocks-rally-2021-06-07\/\">signs of market manipulation<\/a>\u00a0due to concerns about \u201cvolatility in certain stocks.\u201d<\/p>\n<p>Of course markets across the board are struggling. Major indices including the The Dow Jones Industrial Average, The S&amp;P 500, and The Nasdaq Composite are all down sharply this year. But it could be retail investors who really take it on the chin.<\/p>\n<p>\u201cRetail guys don\u2019t know what the f*** they\u2019re doing\u2026 and there\u2019s gonna be more pain,\u201d one broker who spoke on the condition of anonymity told The Post.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/05\/09\/day-traders-profits-from-meme-stock-frenzy-have-been-erased-report\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Day traders&#8217; profits from &#8216;meme stock&#8217; frenzy have been erased: report&#8221; Reddit-obsessed retail stock traders have lost all of their gains since the the pandemic began as the government stimulus that kept markets afloat comes to a screeching halt, according to a report. Retail traders have been hit the hardest by the recent downturn in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":444645,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/retail-trading-gamestop.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[128951,5005,70470,70360],"class_list":["post-444644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-5-9-22","tag-reddit","tag-retail","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/444644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=444644"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/444644\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/444645"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=444644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=444644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=444644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}