Bohens Take
Mar. 23, 20218 min read

Bohen’s Take: Meme Stocks, Pre-Market Prep, & My Crazy Diet

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Written by Tim Bohen

It’s that time again … Welcome to the latest edition of Bohen’s Take. I know. It’s been a while since my last update. But I’m back at it!

In this edition, I’ll recap how social media and the stock market combined to create some jaw-dropping price moves in meme stocks

You’ll hear about a great milestone for my Pre-Market Prep sessions…

And you’ll discover my pick for the most scandalous stock of the year. We’ve had a ball watching and analyzing this one in the SteadyTrade Team community

Plus I’ll dish on my scandalous diet — which I LOVE. Read on for all that and more. Let’s dive right in!

What’s the Haps?

I’m enjoying life right now.

The weather’s warming up here in Michigan. I’m getting out more and catching more sun… 

But I’m especially loving all the awesome market action we’ve been having.

In all my years of watching the markets and trading stocks, I have to say, this is the most opportunity-rich stock market I’ve ever seen.

And this month roughly marks the one-year anniversary of my daily Pre-Market Prep broadcasts, and I’m pretty proud of myself…

I’ve been blasting my face out on the internet each morning to thousands of traders, discussing all kinds of stocks and trading ideas. I’ve only missed a few days in the past year. Pretty stellar record, right?

I love educating my fellow traders … If you’d like to hear my thoughts and maybe ask me a question or two before the market opens, tune into my Pre-Market Prep sessions — they’re free of charge. They’re available at 8:30 a.m. Eastern each trading day. Sign up for the daily digest, view the entire archive, and learn more about where you can catch my sessions here.

Apart from that, I’ve been hitting the gym hard and trying to stick to the carnivore diet.

What’s the carnivore diet?

If you know anything about me, it’s the most Tim Bohen diet in the history of the world — basically all meat, eggs, and a little cheese.

Is it a fad diet? Maybe. Have I cheated and eaten some non-meat products? Of course.

But I feel great … I feel a boost in mental clarity. I’ve dropped some weight, and even my skin looks and feels healthier. I love the carnivore life!

Hot Trade of the Year (So Far)

Wow, these markets have been wild. So when it comes to picking a hot trade, I can easily come up with at least 100 candidates.

But I think one stock deserves top honors in this edition of Bohen’s Take. And since we’re a bit behind on updates, this one’s gotta take the spotlight.

It’s arguably the most famous and controversial ticker of 2021.

This stock gained huge media attention globally, as retail traders battled hedge funds and Wall Street titans.

I’m talking about none other than GameStop Corp. (NYSE: GME). It’s likely you already know this story. But if you missed the 2021 GME fiasco, you’re missing out. It’s one of the greatest stock market stories in decades.

To me, GameStop itself is a mediocre business. It runs an outdated brick-and-mortar model to sell video games.

Not exactly modern. Just think of how easy it is now to access online games and gaming platforms. You can download them without leaving home. So what happened?

The GameStop Saga

Over the past year, a bunch of big hedge fund traders thought that GameStop’s future prospects were bleak. And they decided to short the stock.

At the same time, a Reddit group called WallStreetBets caught word of the short. They organized under the premise that if enough traders piled into GME to push up the price, they could squeeze out hedge fund shorts.

We know what happened next … But check out this chart!

GME one year chart

GameStop (NYSE: GME) year-to-date chart with a short squeeze price spike (Source: StocksToTrade)

A year ago, GME was in the $4s. Then at the beginning of 2021, it was up to $19.

Then it hit a high of over $480 as retail traders squeezed out hedge fund traders.

Billions upon billions of dollars changed hands. A major hedge fund almost went bust. Some brokers halted trading of GME, and this little gaming stock made headlines around the world.

Of course, that crazy peak didn’t last. After the hype died down, the price dropped to around $40. Then the WallStreetBets traders pushed for a second run to over $250.

This was the first of the meme stocks and I think a sign of the new normal.

Social media has the power to bring millions of everyday traders together. The WallStreetBets community has over 9.6 million members, and many more browse the forum.

When you add these small trading accounts together, it accounts for a huge amount of capital.

When they get together and decide to all buy or sell a stock, or participate in some corporate action, big things can happen. I expect we could see more meme stock action over the coming months, maybe even years. 

Kim Ann Curtin, Stephen Johnson, and I discuss it all in this episode of the SteadyTrade podcast.

StocksToTrade Feature of the Month

Without a doubt, the feature of the month has to be Small Cap Rockets.

It’s a chat room and small-cap stock alert service run by Matt Monaco, John Papa, and me.

Matt and John are two awesome up-and-coming traders, and they’ve been spotting some incredible trades recently. See some killer examples here.

The Small Cap Rockets service is great for part-time traders — or anyone who wants to learn from skilled traders.

By subscribing to Small Cap Rockets, you receive trade ideas with entry and exit points, market commentary, and up-to-date insights. And it’s all in an easy-to-use section of the StocksToTrade platform.

Don’t subscribe to Small Cap Rockets yet? Grab your trial of Small Cap Rockets to see what we’re watching in the markets. It’s an amazing service and opportunity to learn more about how to trade small-cap stocks.

What I’ve Been Reading

You know I love to read, right? It’s one of my favorite hobbies.

Since I’m a market addict, I read many books about trading and finance. Or I get into a lot of related topics about mindset and skill development…

But I also read plenty that has nothing to do with trading. But I almost always take away something that helps me in my market approach.

“The Terminal List” by Jack Carr is one of my recent reads. It’s a novel … And it’s part of a great series about the crazy adventures of a Navy Seal guy. That’s right in my wheelhouse.

How does this improve my trading? A few ways…

First, finding a way to relax and escape after a long day of market action is good for me. 

Also, according to this recent study, reading fiction enhances the brain’s ability to keep an open mind and process information. Tell me that isn’t exactly what we need as traders…

All in all, I think “The Terminal List” is a great book. If you’re looking for something entertaining, I highly recommend it.

(As an Amazon Associate, we earn from qualifying purchases.)

Bohen’s Conclusion

That’s all she wrote, folks…

We’re living through a glorious time in the stock market with awesome trading setups, hot sectors, and insane price action.

It can be hard to keep on top of everything … but you don’t have to go it alone. You can tune into my Pre-Market Prep sessions each morning.

And when you’re ready to up your game, join our elite community where I train some killer traders and teach them everything I know — the SteadyTrade Team.

What’s your top trade of the month or year so far? How do you think GME changed the game … or did it? Let me know in the comments below!