Billy Johnson, an independent journalist working with MyTopSportsbooks, has investigated the top-10 epic losses on the infamous SubReddit, r/WallStreetBets. The Reddit forum has been a hub for budding investors in recent years, notably during the 2021 GameStop Stock Saga, offering a plethora of financial advice.
During the COVID-19 pandemic, the popularity of r/WallStreetBets surged and became a news piece of media outlets across the world. The page became the headquarters for various schemes to try to take advantage of available stock float on various assets, with people using the popular trading app Robin Hood to access the stock market.
For anyone who’s ever tried their hand at the stock market, they’ll be acutely aware of the potential risk. Much like gambling, playing the stock market feels great when one’s on top, but things can sometimes go wrong, very wrong. The journalist has put together a list of the most epic losses incurred by those investors that forgot the importance of risk management.
In some cases, users tripped up because they were probably too young to be investing; with one case of a 19-year-old losing every last dollar in his trading account. But that’s lightweight losses compared to the $10 million lost by one investor playing around with GameStock stock at the start of 2021.
The emergence of cryptocurrency and personal investing has seen the average Joe make millions. But this success is far less common than it seems. Whether it’s miscalculating the market, overestimating the potential of assets, or just making bad bets, Johnson covered the misfortunes of overambitious investors.