What is Wallstreetbets (WSB)?
Wallstreetbets is an online community of investors, traders, and market enthusiasts who discuss and share trading ideas, news, and market analysis. The Wallstreetbets subreddit was founded in 2012 as a place for traders to share thoughts, ideas, and information about the stock market. The Wallstreetbets subreddit quickly grew in popularity as it provided an informal and fun place for traders to discuss their ideas and strategies. Its members are a mix of long-term investors, stock market traders, and day traders. They discuss a wide variety of topics, such as trading strategies, stock market news, and macroeconomic trends. Many of the members offer their own analysis and advice, making it a great place for new traders to learn more about the stock market. Wallstreetbets has also become a bit of a celebrity in the trading world, as its members are often cited in news articles and other publications.
Wallstreetbets has become increasingly influential in the trading world, as many of its members have made huge profits from their investments. For example, in 2020 the Wallstreetbets community famously drove up the price of GameStop stock, resulting in huge returns for members who bought the stock. This has led to a lot of media attention and increased interest in the community. In addition to providing a forum for traders to discuss strategies, Wallstreetbets also offers educational resources, such as videos and articles on investing, as well as a weekly market summary. The Wallstreetbets subreddit also hosts a number of competitions and contests, allowing members to test their trading skills and win prizes. Finally, Wallstreetbets also offers a number of tools and services, such as stock screeners, charting tools, and automated trading bots.
Simplified Example
If you're looking for something similar to Wallstreetbets, you might want to check out Reddit's Stock Market subreddit. It's a large community of users who discuss stocks, trading ideas, and market analysis. There are also other similar subreddits like Stock Trading and Investing, which have more specific topics. Additionally, there are several online communities dedicated to stock trading and investing, such as StockTwits and Investopedia. All of these are great resources for learning more about the stock market and trading.
The History of WallStreetBets
Since its inception in 2012, the WallStreetBets subreddit has burgeoned from a niche enclave of enthusiasts into a global force reshaping financial narratives. Initially characterized by its audacious and high-stakes trading maneuvers, the community fostered an ethos of embracing risk and exploring unconventional strategies, often described as "Like 4chan found a Bloomberg terminal."
In early 2021, WallStreetBets gained widespread attention during the GameStop short squeeze, a coordinated endeavor by retail investors to drive up GameStop's stock price, heavily shorted by hedge funds. This momentous event propelled the subreddit into the limelight, underscoring the potency of retail traders in reshaping market dynamics and challenging the status quo on Wall Street.
Examples
Wallstreetbets has become known for its role in driving up the price of GameStop stock, resulting in huge returns for members who bought the stock.
Robinhood app: has become increasingly popular for providing commission-free stock trading, a place for stock traders to form a community and discuss stock trading, strategies, and much more.
StockTwits: a popular social media platform for discussing stocks and trading strategies.
Related terms
Bubble: A bubble in economics refers to a market phenomenon characterized by a sudden and significant increase in the price of an asset or market as a result of excessive speculation and optimism.
Insider Trading: Insider trading is the illegal practice of using information that is not available to the public to make decisions on when and what stocks to purchase or sell.