Risks of following WallStreetBets
Many of the members and contributors are amateur traders, so they might not have the most reliable trading knowledge. The subreddit promotes high-risk stock trading methods that may not work for everyone. So we recommend that you do the necessary fundamental and technical research before going off on what you see being posted. Similarly, suppose there is a rumour about a company. In that case, it may not be accurate, so it’s wise not to follow the discussions of others blindly or risk losing your investments to wallstreetbets recommended stocks.
As we’ve mentioned, wallstreetbets initiated the short squeeze for the company GameStop. The traction it created showed how volatile the market could and still can be. It is a valuable platform to read on popular trends and stocks that have a history of volatility. Unlike with us at CAPEX, where volatility is more likely to work in your favour. But the stock market is rapidly changing depending on outside influences, which you should still consider.
Many members go on the subreddit to share their earnings, and there are examples of traders who have lost excessive amounts of money. We don’t think this is the best place to get advice or a ‘get rich quick scheme’ because its mantra is to discuss and practice high-risk methods. At CAPEX, we have our own online trading school. You can learn the basics and develop your stock trading skills and CFD trading determinations to have a more successful trading experience. It is not an investing subreddit, but more like a gambling subreddit.
Conclusion – Trade more than 2,000 CFDs on stocks at CAPEX
If you want to trade wallstreetbets recommended stocks, make sure to do your research on the specific company. Including the history of trends and the type of risks, it poses to you, the investor. Trading stocks, whether through CFDs or not, present a risk, but it is at an even higher risk if you were to follow the opinions of the wallstreetbets members religiously. We think it is good to read up on popular stock discussions and proceed with caution when trading.
We want all of our customers to trade confidently. So open an account at CAPEX.com today and start learning by trading on an online broker demo account and with the help of a magnitude of online resources to develop your understanding of stock trading with CFDs.