About this Video

• Video Title: How To Make Money Using WallStreetBets (Trading Strategy)
• Channel: Ryan Provan - Stocks & Crypto
• Speaker(s): Ryan
• Duration: 00:09:17

Introduction

This video explains a high-risk, high-reward day trading strategy called the "hype trading strategy," which leverages the WallStreetBets subreddit (or similar forums) to identify stocks experiencing a rapid surge in popularity and price. The presenter walks through the process of finding these "pump and dump" opportunities, emphasizing the importance of a quick entry and exit strategy.

Key Takeaways

• The Hype Trading Strategy: This strategy involves identifying stocks experiencing a rapid surge in popularity and price, often driven by social media or forum discussions rather than underlying fundamentals. It's crucial to be on the "pump" side, entering early and exiting before the inevitable "dump."
• Using WallStreetBets: The video demonstrates how to use the "Game" flare and "Hot" filter on WallStreetBets to find stocks currently being discussed and gaining traction. While WallStreetBets is highlighted, the strategy can be applied to other forums or social media platforms where stock discussions occur.
• Stock Chart Analysis: After identifying a potential stock, analyzing its chart for recent upward trends, particularly in after-hours trading, is essential. This can indicate potential price increases in the next trading day.
• Risk Management: The video stresses the high-risk nature of this strategy and emphasizes the importance of setting stop losses and profit targets to minimize potential losses. Maintaining adequate liquidity for quick entry and exit is also crucial.
• Short-Term Focus: The presenter explicitly warns against using this as a long-term investing strategy, as stocks experiencing hype-driven pumps often lack fundamental backing. This approach is strictly for short-term day trading.

Yes, the transcript mentions volume in the context of selecting a stock. At 7:02, Ryan advises against taking large positions in stocks with low trading volume, even if they are starting to rise. He recommends choosing stocks with sufficient volume to facilitate quick entry and exit: "don't take a giant position in a stock which is just starting to pump up but doesn't have that many shares going through the register each single day". He suggests taking positions appropriate to the stock's trading volume to ensure ease and speed of buying and selling.