On today’s episode of SteadyTrade, our hosts, Tim Bohen, Stephen Johnson, and Kim Ann Curtin have a hot discussion and key lessons from $ZOM.
It’s all about how celebs, social media, and new traders can move stocks — and what it means for traders.
Could the lines of stock pumps and promotions be blurred forever? It seems like anything can move stocks in this market — tweets, Reddit, TikTok, Discord. It’s a whole new world and market.
And with new apps popping up almost every day, who knows what the next social media trend will be.
Listen in to hear what our hosts think about this ever-changing world of social media and what it could mean for traders now and in the future.
Lessons From $ZOM: How Celebs Can Move Stocks
Welcome to the new market madness. A celebrity — and not even an A-list celeb — can mention a stock on a video app and generate over a billion in trading volume…
You know our hosts will be completely honest about what they think … As Stephen puts it, “there’s something massively wrong with the world.”
But is it really so bad if new traders profit from these moves, or are they just learning the wrong lessons?
Tune in to hear Kim and Stephen’s arguments for why runs like this, and this market, can be a blessing and a curse for new traders.
What Lessons From $ZOM Can You Learn?
Traders are getting caught up in market mania. So many just love a good story.
It doesn’t seem to matter if the company is good or what the news is. It’s all about the reaction and the story.
Tim remembers another example from last year … Everyone was outraged by a Peloton commercial. People lost their minds over it. Then just a few days later they were on to the next story.
New traders seem to get sucked into the madness all too easily. They see hot action and want to jump in. But it’s a dangerous game, especially if the market shifts.
In the case of $ZOM, Stephen wonders if it’s new traders who bought up shares and are holding, or if hedge funds came in and are holding up the stock…
That would be an interesting question for the former market maker who revealed the shocking secrets of stock market manipulation in episode 179. If you missed it, go back and listen now!
Does Social Media Mean This Market Is the New Normal?
As Kim says, having computers in our pockets means people are bombarded with information all day, every day.
People are being triggered, either negatively or positively, and it’s showing up in the markets…
So does that mean this market is the new normal? After all, smartphones and social media aren’t going anywhere anytime soon.
It has Kim worried about people. Everyone’s constantly looking for a dopamine kick and validation through social media. And the constant stimulation affects our ability to think and focus…
But it’s not all necessarily bad news. Traders can learn to take advantage of this market if they can see it for what it is.
In Stephen’s opinion, there are still the same patterns that have been around for years — they’re just bigger. But with so many more opportunities, he admits he too is feeling the pressure to catch every move.
This whole crazy market reminds our hosts of the book “Extraordinary Popular Delusions and the Madness of Crowds” by Charles Mackay. The book is based on past market bubbles, and, in Tim’s opinion, is a must-read.
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Where Do We Go From Here?
In all these lessons from $ZOM, there’s a big question on everyone’s minds: Did the celeb own shares when mentioning $ZOM?
And what’s really illegal when it comes to stock pumps and promotions?
It seems like anyone with a sizable following on social media can mention a ticker is a good buy and it could skyrocket.
Then companies can take advantage of price increases by diluting shares. In Stephen’s words, “It’s disgusting.” He wonders when news will come out to justify the moves…
And how long can $ZOM hold up? Tune in to hear our hosts’ predictions.
This episode closes with tips for new traders who want to use this market to learn the right lessons. Be sure to stick around to the end!
What Do You Think?
What do you think about these lessons from $ZOM? How about celebs and social media impacting stock prices — is this the new normal? Let us know your thoughts.
Remember: if we select your question or comment as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!
Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.
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Meet Our Hosts
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Kim Ann Curtin