He said paying attention to overnight and early morning conversations are critical. Momentum is an investing strategy.'īright Trading's Dick said he reads the headlines in the wallstreetbets subreddit each morning and scans the forum about five to 10 times a day.
'But if something is going on - they're active in the morning, and that creates momentum. 'I'm not taking advice from 'WallStreet1,'' Saluzzi said, referring to anonymous posters on Reddit. Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey, said the volume of retail trades was significant and it was important to be aware. Over the past week, he has looked at it a few times a day. Wedbush's James said he started paying closer attention to Reddit over the past month and now looks at trading-related subreddits daily. Now they are noticing discussions moving into mainstream companies with large institutional holdings – and moving markets. Their trades are becoming a force to reckon with.īefore, much discussion on forums such as Reddit used to involve penny stocks and micro-caps that institutions would shun, professional traders said. Homebound Americans, some flush with cash from stimulus checks and forced savings, have been chasing higher on the stock market at a time of zero interest rates.
