Davey Day Trader

Bubble popping cartoonIf you think there’s something a bit curious about a frothy and pricey stock market existing simultaneously with a global pandemic, Depression-level unemployment, GDP and corporate earnings collapse, freeze-up in world trade, riots by anarchist mobs, devastation of small businesses, and corporate bankruptcies, you might just be thinking that we’re seeing a classic asset bubble blown by the injection of unprecedented amounts of “money” created out of thin air by central banks.

One characteristic of financial bubbles, particularly in their late stages, is a massive pile into the market by small “retail investors”, who bet their modest savings in the belief that “stocks only go up” and “this time is different”.  Another sign of a bubble is the emergence of financial gurus, often with unusual backgrounds, proclaiming this “new wisdom for a new era” to their enthusiastic followers.

And now we have David Portnoy, founder of Barstool Sports, who says that prior to the COVID-19 lockdown, he had bought only one stock in his life.  But with sports shutdown, he was bored and began to watch the stock market which, “with the volatility, it is kind of watching a sports game.”  He began to day trade and stream his activity on Twitter as “Davey Day Trader Global Global” (because he’s so global, one “Global” isn’t enough).  He is not modest.

David Portnoy: Warren Buffet washed up

He has 1.6 million followers on Twitter, and his daily live-streams attract hundreds of thousands of viewers, some of whom mirror his trades in the market.  Here he is buying a US$ 200,000 worth of penny stock Zomedia Pharmaceuticals (ZOM), because, well, see for yourself.

Here is an hour of Davey Day Trader at “work” (some naughty language).

The retail trading platform Robinhood (a frequent advertiser on the flagship podcast of a certain legacy podcast site) has crashed several times in the last two weeks due to what is suspected to be overload by those following Portnoy.  The average age of Robinhood “investors” is 31.

The cool, rational practice of security analysis (not safe for work):

This will end badly.

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Author: John Walker

Founder of Ratburger.org, Autodesk, Inc., and Marinchip Systems. Author of The Hacker's Diet. Creator of www.fourmilab.ch.

50 thoughts on “Davey Day Trader”

  1. “If you don’t buy you can’t win.” sells more lotto tickets than “A great way to lose your money is to buy one of these suckers. ”

    I question the judgment of a person who follows a sports guy who starts to buy stocks because he was bored.

    “This comment was brought to you by Scam-o-Matic. It slices. It dices. It makes your nest egg into julienned fries.”

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  2. A quote from the Twitter feed.

    El Presidente/3 time Bee Sting survivor. I own a ton of Penn Stock. I’m not a financial advisor. Don’t trust anything I say about stocks. Owner of DDTG Global

    I must blindly trust anyone who tells me not to trust them. Or it might be the “bee sting survivor” remark. DDT is a good thing, right?

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  3. Robert A. McReynolds:
    So he’s riding the bubble until it bursts? I mean it is a good strategy as long as you get out before the burst.

    Not the point. Pick a stock that will survive both good and bad times. I bought 3 thousand shares of ZOOM six months ago at 103 and it just traded at 259. Think that stock is going away anytime soon?

    Despite competition from FB and Google, this stock has now become a verb- like Xerox- and it has set a new template for business. Corporations are discovering that zooming at home saves millions of dollars of rent particularly in urban areas and when and if the corona virus panic subsides, this company has set a new standard of doing business.

    I will be able to retire on this stock and more importantly, both employees and employers are quite content with this way of doing business.

    And yes, I’m a Davy Day Trader and it is soo working for me because I know what I’m doing. Lose the sanctimonious attitude of the current and future market Mr. Walker.

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  4. EThompson:
    And yes, I’m a Davy Day Trader and it is soo working for me because I know what I’m doing. Lose the sanctimonious attitude of the current and future market Mr. Walker.

    I agree John Walker is terrible and doesn’t know what he is doing. (John, you don’t even have a 44 Magnum.)

    I am hurt because I thought I was sanctimonious but not to the level of Bubba.  (Hey, no one out Luthers a Lutheran!)

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  5. 10 Cents:

    EThompson:
    And yes, I’m a Davy Day Trader and it is soo working for me because I know what I’m doing. Lose the sanctimonious attitude of the current and future market Mr. Walker.

    I agree John Walker is terrible and doesn’t know what he is doing. (John, you don’t even have a 44 Magnum.)

    I am hurt because I thought I was sanctimonious but not to the level of Bubba.  (Hey, no one out Luthers a Lutheran.)

    Respond in a legitimate and intelligent manner that focuses on the point or dont bother at all. You only embarrass yourself.

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  6. EThompson:

    10 Cents:

    EThompson:
    And yes, I’m a Davy Day Trader and it is soo working for me because I know what I’m doing. Lose the sanctimonious attitude of the current and future market Mr. Walker.

    I agree John Walker is terrible and doesn’t know what he is doing. (John, you don’t even have a 44 Magnum.)

    I am hurt because I thought I was sanctimonious but not to the level of Bubba.  (Hey, no one out Luthers a Lutheran.)

    Respond in a legitimate and intelligent manner that focuses on the point or dont bother at all. You only embarrass yourself.

    Wasn’t the point that John Walker was sanctimonious and not as smart as you because you bought Zoom and made a profit? I get to tease John Walker and Bubba.

    I am not the only one to embarrass themselves on this web site. Do you want a list?

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  7. You missed the point yet again and no, I don’t need a list of anyone.

    I only wanted a legitimate response to the market and what is happening right now.

    Let’s just call it a day; big mistake for posting my original comment. I can assure you and all your acolytes it won’t happen again.

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  8. EThompson:
    You missed the point yet again and no, I don’t need a list of anyone.

    I only wanted a legitimate response to the market and what is happening right now.

    Let’s just call it a day; big mistake for posting my original comment. I can assure you and all your acolytes it won’t happen again.

    I understand, Liz. You can criticize others but you can’t take criticism. The slightest push back or humor and you have to run away. Have fun!

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  9. 10 Cents:
    (John, you don’t even have a 44 Magnum.)

    Uhhhh….

    Besides, .44 Magnums are for pussies.  When the going gets tough, what you really want on your Toyota Starlet is a GAU-8.  You can simultaneously deal with the adversary and retreat with great alacrity.  Did I shoot 1150 or just 1149?  Well, do you feel lucky?

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  10. John Walker:

    10 Cents:
    (John, you don’t even have a 44 Magnum.)

    Uhhhh….

    Besides, .44 Magnums are for pussies.  When the going gets tough, what you really want on your Toyota Starlet is a GAU-8.  You can simultaneously deal with the adversary and retreat with great alacrity.  Did I shoot 1150 or just 1149?  Well, do you feel lucky?

    I don’t got to know.

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  11. I can explain it since I’ve owned FB stock since it was trading at $88. It is a fluid stock because it’s in the major leagues now and vulnerable to social and political crises but his financials are great, he was smart to buy Instagram to attract a younger audience and he’s going after Zoom technology. He’ll be fine and when it comes to making money, people get over the political nonsense.

    BTW, NASDAQ was highly volatile this week … period. MZ is invested in businesses that are literally recession proof.

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  12. drlorentz:

    John Walker:
    And now we have David Portnoy,

    When the bubble bursts, we’ll be hearing Portnoy’s Complaint. Even the sexual frustration angle works. That Philip Roth was a genius, I tell you. Mark Zuckerberg could play the lead in the film adaptation. Who wants to write the film treatment?

    The bubble doesn’t burst if you own businesses that directly address crises.

    BTW, I’ve read a lot of Roth’s books: Goodbye Columbus, When She Was Good, Portnoy’s Complaint and My Life as a Man.

    I kept looking for a positive as I did with the dreadful Norman Mailer but although interesting, PR was a world class whiner. Not an apt comparison to Mark Z in the least!

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  13. 10 Cents:

    EThompson:
    You missed the point yet again and no, I don’t need a list of anyone.

    I only wanted a legitimate response to the market and what is happening right now.

    Let’s just call it a day; big mistake for posting my original comment. I can assure you and all your acolytes it won’t happen again.

    I understand, Liz. You can criticize others but you can’t take criticism. The slightest push back or humor and you have to run away. Have fun!

             

    10 Cents:
    I am hurt because I thought I was sanctimonious but not to the level of Bubba.

    I am not a day trader.  I don’t mind that day traders exist.

    I have been using Zoom.  I am now actively looking for an alternative to Zoom, since I found out that they cancelled Zoom accounts in order to placate the ChiComs.

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  14. MJBubba:

    10 Cents:

    EThompson:
    You missed the point yet again and no, I don’t need a list of anyone.

    I only wanted a legitimate response to the market and what is happening right now.

    Let’s just call it a day; big mistake for posting my original comment. I can assure you and all your acolytes it won’t happen again.

    I understand, Liz. You can criticize others but you can’t take criticism. The slightest push back or humor and you have to run away. Have fun!

             

    10 Cents:
    I am hurt because I thought I was sanctimonious but not to the level of Bubba.

    I am not a day trader.  I don’t mind that day traders exist.

    I have been using Zoom.  I am now actively looking for an alternative to Zoom, since I found out that they cancelled Zoom accounts in order to placate the ChiComs.

    I really think I should have gotten 3 Lighting Bolts. Would you add one to this comment just for complaining?

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  15. MJBubba:
    I have been using Zoom.  I am now actively looking for an alternative to Zoom, since I found out that they cancelled Zoom accounts in order to placate the ChiComs.

    You might try Free Conference Call.

    It’s what we use for the RAMUs (RAMI?) that are audio only but they also have video. I’ve tried it and it seems okay.

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  16. EThompson:
    I can explain it since I’ve owned FB stock since it was trading at $88. It is a fluid stock because it’s in the major leagues now and vulnerable to social and political crises but his financials are great, he was smart to buy Instagram to attract a younger audience and he’s going after Zoom technology. He’ll be fine and when it comes to making money, people get over the political nonsense.

    BTW, NASDAQ was highly volatile this week … period. MZ is invested in businesses that are literally recession proof.

    Meaning as long as you get rich who cares if the country goes to crap? Sounds like looting for the upper classes. “I gots mine fool!”

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  17. Robert A. McReynolds:

    EThompson:
    I can explain it since I’ve owned FB stock since it was trading at $88. It is a fluid stock because it’s in the major leagues now and vulnerable to social and political crises but his financials are great, he was smart to buy Instagram to attract a younger audience and he’s going after Zoom technology. He’ll be fine and when it comes to making money, people get over the political nonsense.

    BTW, NASDAQ was highly volatile this week … period. MZ is invested in businesses that are literally recession proof.

    Meaning as long as you get rich who cares if the country goes to crap? Sounds like looting for the upper classes. “I gots mine fool!”

    Meaning Mark Z is a great businessman and has created an enormous amount of wealth for many people. I don’t mind admitting this in the least- he is a personal hero and I admire him. 

    So shoot me now but I’ll dodge the bullet and continue to live a good life. What is your obsession with successful entrepreneurs who don’t agree with your politics? Who cares?

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  18. It all feels like the Dot Bomb and housing crash times again. Efff you very much, Modern Monetary Theory adherents.

    You know, a stock crash wouldn’t really bother me if it cratered Google, Apple, etc. But it never does. Big Tech always comes out ahead, no matter what, which is part of what fuels my suspicion that the stock market is nothing but one big rigged scam.

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