Reddit and Stock Investment

A lot of people have heard that famous quote: "When everyone is talking about XYZ, you'd better sell it." The logic behind it is that when a trade is crowded, there will be no new buyers coming in, and the price will likely crash soon.

This idea is always being used in all the Reddit stock subreddits, but the problem is: Is it still true in this digital age?

The truth is, we are in the digital age, and the previous quote has been disproved so many times. We can easily find tons of examples, like NVDA, gold, and silver. Since 2022 and 2023, all of them were "everyone is talking about it," but none of them have crashed. Instead, all of them are breaking all-time highs (ATH) daily, especially for gold and silver.

Silver is the most prominent example. Everyone was talking about it when silver was $50, and TD was shorting it then and at $70, losing millions of dollars both times. Gold is the same; when it was $3000, everyone was talking about buying gold too. But it just keeps on going up.

The reason that it changed is because we live in a digital age. Back then, it was more like 20/80, but now the top 1% would get the most attention and money inflow. We can see that on YouTube and Twitter; it's always just the top 1% getting 95% of web traffic.

This stands true in the stock market, which is the Matthew effect: the stronger get stronger, and the weaker will just forever be kept weak. This means the fundamental basis of the quote, "when everyone is talking about something, sell it," is broken. Now no one cares about basic statistics; most of the high-performing stocks in this AI bull run are not making any money, but they got the "hype."

In this digital age, web traffic is the king. Whoever gets the attention, their stock will just keep going up like Tesla's. Therefore, whenever everyone is talking about something on Reddit, it is time to buy in instead of selling. It is the digital age, not the 1980s anymore.

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