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Oh my goodness folks we are about to have an absolute mess on our hands in the stock market i want to explain exactly what’s going on here so you guys are aware of this this is something that um is going to have wide-ranging kind of implications that are going to go way past kind of what people see on the surface essentially and so i just want to kind of put all
These pieces together so you guys kind of know what’s going on out there um what exactly is transpiring and why all this matters okay so first off wall street vets you know obviously massive community there’s been a stock that has been absolutely probably the most talked about stock ever in the history of wall street bets and that includes even amc is a stock name
Bbby which is a bed path and beyond all right which was uh you know a lot of people thought could potentially go bankrupt and then all of a sudden uh the last like month or two their stocks gone insane but specifically the past like week or so their stock went absolutely through the roof okay so everybody’s talking about this on wall street bets ton of people and i
Mean a ton of people have been flooding in money to this stock over the past about a week or so okay specifically over the past few trading days which made it stop the stock price at bbby go absolutely through the roof okay and it was trading yesterday today uh you know well not really today so much it was mainly yesterday and the previous day it was trading 25 26
27 even at the peak like 28 dollars a share okay this stock after hours is ten dollars and who knows where i’ll be trading at tomorrow it’s possible it reaches single digits tomorrow okay we’ll see what happens it is bad okay and this has this has huge ramifications for a ton of folks in the market because this is gonna this is such a devastating move considering
How many people have kind of flooded money in this over the past few days that this is going to end up moving way way past uh just this stock in particular i want to explain exactly why this is going on but yeah this this isn’t like a small move down like you know 10 right when you’re talking about 44 after this stock was already down like 20 today oh my gosh okay
This is like end of the world type stuff there’s people that put major money into this stock and i’m talking about major money i grabbed this screenshot just off wall street bets you know this person was up to six million dollars yesterday at one point six mil and uh they just sold out and they’ve got 2.1 million dollars left they took a 1.1 million dollar loss
On this stock and that’s just absolutely a massive massive move they say i was wrong i’m out yes i lost big it’s been an honor to yolo with you for the first time i issued a trade after hours through a broker on the phone it was somewhat surreal it messed up or excuse me it’s messed up my summary a little bit but i’ll lose somewhere around 800 000 over the past
Two weeks and 1.2 million over the last week related to bbby i peaked at 6 million account value i only had the screenshot for 5.4 and they go into kind of you know their thoughts on on selling and whatnot they say i was wrong about the squeeze and the momentum up to uh or i was i was right about the squeeze in momentum up to 6 million i i called a down wednesday
Thursday and was bullish at the close before after hours disaster he says i was wrong about rc which is ryan cohen which is this individual that’s a fairly big name in the stock market and you know word just got out that they sold out of their possession now a friend texts me and i’m still trying to fact check this okay but a friend texts me and they they know quite
A bit about what’s going on but they had text me that basically they believe rc had loaded up on puts as well which would be just even more nasty i don’t know i gotta fact check that more and see kind of what’s going on there okay all he had to do was stay out of the way we were blown up at the launch pad rc has sold his reputation at the market only he knows if it
Was worth it obviously people are going to be pretty furious with this ryan cohen individual okay yes i felt some normal emotions betrayal humiliation despair but i make the best decision i can and live with the consequences that won’t change okay and they go into some more things there and so there’s a huge amount of money right this person says whatever whatever
Therapist you’re seeing you’re handling this incredibly well and uh yeah i mean but the thing is like you know i mean they were sharing this on on wall street bets this number like if you’re going to do something bad to yourself like that’s the number you call right and uh you know that’s just you know the state of kind of things out there and it’s very very ugly
And this is going to go way past just bbby stock because the thing you got to understand is people invest in very similar stocks right so if you’re in a stock like a bbb why there’s a pretty high probability you can also be in a stock like a gme an amc a bb stocks like that right and so you know this stock already is down seven and a half percent after hours gme
Who knows what the moves down tomorrow because you’ve got to understand i mean the volume is going to explode for this stock tomorrow i mean absolutely explode you got thing you got to understand is a lot of these folks that do some of this activity and get into these sorts of plays they also margin is very common it is like you know you sign up and it’s like
Hey i’m going to do these type of plays okay here’s your margin account right and so they don’t just do it with their own money or something they do it on leverage because why just go into a bbby if you’re buying it at 20 you think it’s going 80 over the next week or two weeks or whatever right or 50 like they throw all these price targets out every time a single
Time one of these stocks goes up a bunch uh people start throwing out all types of crazy price targets like oh it’s going to hit this by friday it’s going to hit this by next week so then everybody’s in this kind of hype euphoria mode and it’s just going up and so people are like got a margin got a margin and so next thing you know the guy that’s got fifty thousand
Dollars in actual money he goes and margins another thirty thousand forty thousand fifty thousand right now in a situation like we got tomorrow massive amounts of people are going to get margin calls and i mean massive amounts of people are going to get margin calls and it’s going to force them to not only sell their bbb why tomorrow but it’s going to potentially
Cause them to sell in gme or an amc or other stocks they have in their portfolio in general right and so it can have much more wide implications than just oh it’s just going to be that one stock out there because of margin and the margin calls that are going to come tomorrow because that big of a downward move it’s going to take a lot of people’s accounts down big
Time and think about it this way right you might say well maybe people will deposit money in so they can get out of that margin call here’s a deal okay i’ll just tell you the way it is usually if you’re going on margin for the most part unless you’re a super sophisticated investor which is most not most people that were getting in some of these plays okay you
Are getting on margin because you don’t have that actual money if you got a hundred thousand dollars in your account and you’re doing another hundred thousand a margin it’s not because you got a hundred thousand dollars cash you’re like i’ll just do it on margin so i pay interest of course you wouldn’t do that like no one with a brain would actually do that right
You might you’d much rather do it through actual cash you have because then you don’t have to pay you know whatever interest rate your brokerage charges you six percent seven percent eight percent whatever the number is right so think about that for a moment right so nonetheless this is going to cause a massive sell-off in a bunch of other stocks tomorrow as well
Right now think about how many people are playing calls in this situation so the people that write the call options those ones are are looking good they’re making their little profits there right and the people that own puts are going to make bank tomorrow on some of these stocks and i mean absolute bank but the problem is the four majority of folks do not they’re
Not writing these calls you know especially from the retail side and they’re not load up on puts the retail side is loaded up on calls in these stocks and all their call options are going to expire absolutely worthless the amount of people that are playing calls in these stocks that are expiring tomorrow almost all those call options are going to expire literally
Worthless or you know for a penny on the dollar essentially and so you know it’s going to literally wipe out like people’s accounts because people go super heavy in these call options and sometimes the way people think is they’re like oh you know let’s say the stock was at 25 yesterday and they’re like i’m loading up on calls because this baby’s gonna by friday
It’s going to you know 30 or 35 dollars so they buy something at a 25 strike a 30 strike a 35 strike whatever right because you know maybe they didn’t have to pay a huge premium on that and next thing you know the stocks at 10 tomorrow well they literally lost 100 of their money right even if they bought at a 20 strike which would have been really conservative
For a lot of these folks that are playing this those people still ask if you are if you bought it a 15 strike which is way too conservative for these folks to even imagine right if they bought a 15 strike you’re still expiring worthless tomorrow for your call options okay and so that’s why it’s such a it’s it’s like literally destroys money and meanwhile like i
Said the puts are gonna print but the majority of people that would have been playing puts in this are not the retail side man if anything that’s the wall street side of the more sophisticated play there so it’s just ugly ugly no on the on the flip side you think it’s just retail that is in some of these stocks no i can guarantee you there’s some hedge fund money
Out there there’s some the fund money in general that is in some of these plays and if you think the only ones that like to gamble in the stock market or retail you are sorely mistaken there are plenty of others that like to gamble in the stock market as well and so you know this could definitely hurt some funds out there tomorrow that causes more selling pressure
And the thing is with some of those it’s bigger dollar amounts right if a guy with uh you know a few million dollars is in a bbby and goes nearly all in that stock believe me there will be some smaller hedge funds and stuff that will play around with some of these stocks as well and some of the other stocks that are let’s call the adjacent place the bbby figure oh
You know that one may not be as dangerous but if bbby keeps flooding this week you know guess what this stock over here is going to move up in this stock over here right and so yeah it’s not like it’s just retail like some people try to make it out to be okay now an interesting thing is you know let’s call it like the the berry squad okay the michael berry squad
And you know that that whole crowd they’ve been making an argument recently that they’re showing kind of like bbby and they’re like see movement like that when these stocks like amc gme bbby all these others when they’re moving like that we’re nowhere close to a bottom on the stock market right and uh that’s what they say because they’re like you know until that
Activity is dead we can’t hit a bottom on the market right there’s still too much euphoria in the market okay now my thing is i look at these stocks i’m like these stocks have been devastated like look at amc’s you know high it reached last year around this time look where it’s at now like look at gme like look at all these stocks basically they’re massively down
Okay so because the stock moves up for a week or something like that doesn’t really mean much okay on the other side you know it cracks me up because a lot of these folks think they think that you’re going to eradicate you’re going to completely get rid of this sort of activity okay and i’m just here to tell you this isn’t going anywhere okay this sort of stuff
You’re seeing in bbby and what you saw in amc and gme last year and all those sorts of you know here’s the deal okay just in my time in the stock market i have been in since you know 0.809 right i’ve seen a lot of different groups since i was just thinking off somehow top my head that i remember just being the hype cycle and a ton of people getting in these stocks
And they went on some crazy runs for a few months or whatever and then just came crashing down okay the first one i really remember uh vividly was 3d printing stocks this was in either oh gosh it was either in 2013 or 2014. there was a bunch of 3d printing stocks out there some of these are still public companies by the way some of them got bought out by other
Companies but basically if you were doing anything in relation to 3d printing your stock flew to the stinking moon okay a lot of these stocks went up hundreds of percent some even a thousand percent plus in a snap of a fingers because everybody i don’t know i guess thought like 3d printing was going to like take over the world or something like that and here we
Are a lot of years later and like 3d printing is still like a thing right uh but it’s not like it’s some massive industry that was a game changing like those stock prices would have led you on and most of those 3d printing stocks that i remember fell anywhere from 70 to 90 from their peaks then i remember this was either in 2017 or 2018 but it was the jack jackson
Stocks okay the jack jackson stocks everybody was talking about you know potential federal legalization and getting real real hyped and excited about jack jackson plays in in actually what it was back then it was a canada canada was about to legalize and so all these jack jackson plays were going absolutely through the roof plus there were some states starting to
Legalize the united states as well so everybody was super hyped around jack jackson plays and those stocks flew up and aurora and all the others there was a ton of them okay canopy and uh those stocks went on some epic runs and now those stocks are pretty much almost all of them are down 70 80 90 percent till ray was the craziest one i remember where that one was
Like 300 a share at one point then they did a bunch of reverse splits over time to try to make the share price look better to uh just insane situation but that was the next ones the third ones i remember this is actually more recent this was kind of toward the end of 2020 ev stocks basically tesla was going on this epic run right and it took neo stock along with
It and basically anything it was ev related companies the nikolas uh oh gosh uh rivian um there’s so many of those ev companies like some of them lucid i can’t even remember some of them all these stocks like winning this epic run okay anything that was ev related it didn’t matter what you did if you just threw an ev in your name oh my gosh everybody is so excited
About you and yeah all those went to the absolute moon and almost all those ev stocks other than tesla are down 70 plus from their highs essentially we know the only extremely legit ev maker out there is tesla after that the only others you know two kind of plays that i think are kind of legit are byd and neo and outside of that you know it’s it’s a mess let’s
Just call it a mess okay and the most recent one is obviously the meme stocks right the amc the gmes the bbs the bbbbys all those sorts of stocks right and so this activity is not going to end if you know folks think this is this is it this is the one they’re finally going to get it through their heads this time not to mess with any of this type of stuff again no
There’s going to be the next one okay and it’s probably not going to be amc and it’s probably not going to be gme or bed bath and beyond or these it’s going to be some other new stocks in the future this is the way this goes and this will always be the game okay you know i live in vegas i think most you guys watching this know i live in vegas right and there’s a
You know a city that was built on gaming right and i’m not talking about the gaming with the controller and so why do people continue to go to casinos when they know the odds are stacked against them the reason is because it’s fun one or because they think they’re gonna win big okay now on a given night the majority of people that exit that casino will have lost
Money you’re gonna have a small group of people that broke even you have a small group of people that made money and you have an extremely small group of people that made big money okay but most people lose money and so a lot of people treat the stock market like it’s a casino and that’s why these sorts of hype cycles exciting movements are not going to end even
When a ton of the people will have lost money right because when everybody’s getting in is usually right toward the peak essentially and that’s why it makes this last kind of parabolic move because everybody’s also talking about now and everybody’s like you’ve got to get in man i just made 50 not just me 75 get in get in and then everybody’s telling their friends
And their family and everybody and everybody’s seeing it on all these forums and stuff like that and everybody’s getting in getting in and then all for the most of them most of them end up losing money a few of the first ones that got in they exit with a profit a guy like ryan cohen’s probably made bank on this whole situation right meanwhile most people lost
A ton of money right and it’s the same thing as like a casino effect okay and so you know to a lot of individuals that like to get involved in this sort of activity it’s it’s more of like a fun thing to do it’s kind of like i at the beginning of every season i play some bets on uh who’s going to win the heisman trophy and some of these are very long shots and i
Put like 100 bucks on like five different players and you know it’s like pay some ridiculous amount out if i win i still have yet to win one of these years and we’ll see i’ve made my bets recently we’ll see if this is the year i win but i treat it as fun i know i’m usually throwing away whatever money i put in i think this year i did 100 bet on each guy five guys
It’s 500 i know that was pretty much likely i threw away 500 bill okay that’s just kind of the situation but for me it’s fun and so for a lot of other folks they kind of view the stock market as like that fun thing to do or they’re going to try to hit it big right now for a lot of folks that watch my channel obviously you guys are very focused on actually you know
Approaching us from a standpoint of like building your wealth over the next five 10 15 20 years and you would much rather be let’s just call it the uh the one that’s selling those heisman tickets rather than the one that is um let’s call buying the heisman tickets right and so you guys have obviously a very long-term approach that’s healthy for the market and
Looking at companies income statements and balance sheets and thinking about the business model and where it goes in the future and uh why a company’s going to do good not based upon like you know a hope and a prayer but based upon you know the fundamentals of here’s why this is happening here’s why this is happening here’s why this business model is going to grow
A lot over the next five ten years you know with a lot of these other plays like there’s no business model with those there’s no such thing as that there’s no such thing as like growth it’s kind of like down down down and just down and down and down for the business models right in almost all those plays and so uh you know it’s just a very different approach in
The market you’ve got to understand that stuff’s not going to go away doesn’t matter how many times you think they learn their lesson stuff like that there’s always going to be a new group of folks that want to play the game as well and there’s going to be a new group of folks that even if they lose time and time again they’re still going to be there to to do the
Thing because it’s fun they they view it as fun i lose the heisman thing every single year i’m still going to likely go place my bet again next year and the year after because i think it’s fun and that’s the way some of these other folks approach the market okay that’s the way they approach the stock market that just kind of is what it is and uh it’s always going
To be there so if you’re hoping like maybe this is the time it finally ends everything nope nope and nope and in the next crash it still won’t end anything and in the next crash it won’t end anything and uh it’ll just keep going forever and ever and ever and don’t ever forget that hope you guys enjoyed this video as always i actually have a couple of stock market
Courses absolutely free right now if you want access to those check out the pin comment down there and basically somebody from my team will be able to get you enrolled into those courses you don’t have to pay anything you don’t have to join my private stock group to get access to those i think you’ll get a lot of value out of those and i hope you do enjoy those
Much love as always and have a great day
Transcribed from video
This is Bad! Stocks Will Collapse Quickly Now.. By Financial Education