I hate, rather deplore the term, meme stock. The connotation behind it in my opinion throws shade on actual stocks. Before “meme stocks” the black sheep of trading was penny stocks. Haters swore there was no money in penny stocks. From experience I can say that is not true. Since the GameStop and AMC craze earlier this year the media has adopted the term meme stock and the term isn’t going away. Hard to fight the corporate machine. Since we can’t shirk the side eye of trading meme stocks, we can certainly take control of the narrative and win trading these stocks. Here’s how.

Welcome to Money Talk Sundayz. I’m your Investment Bro Stevie Bee. Hit that like button on your way in. Let’s talk meme stocks.

I want to share with you 9 things to keep in mind when playing the meme stock game. If you keep these in mind you will undoubtedly acquire and maintain a winning portfolio and keep the money flowing in.

#1 Nano Hands.

When I say nano hands, think Iron Man. His hands are capable of a variety of different actions from shooting lasers, jet propulsion, to coming off entirely. With meme stocks, your hands must be able to adapt with any situation that may arise. Therefore, forget the Diamond Hands nonsense and secure your profits whenever possible. You can sell and should sell when you feel comfortable. Do not, I repeat do not be pressured into holding onto a stock longer than you are comfortable with. If your gut is telling you, it’s time to cut it loose, CUT IT LOOSE! If you let the opinions and actions of others intimidate or enrage you, you are in the wrong game. Life is too short to be bothered with someone else’s opinions. Get your money and move on.

#2 Risk Tolerance.

In other words, only trade what you can afford to lose. If you find yourself in a position where you must choose between paying your rent/mortgage or car note or any other base necessity for living and trading meme stocks, you’re doing it all wrong. Take care of your business. Yes there is big money to be made and can be made in minutes as we’ve seen with Digital World Acquisition Corp (DWAC), Phunware (PHUN) and more but there is just as much money to be lost in a matter of minutes. When trading meme stocks you must honestly ask yourself, are you ok with losing this money.

#3 Meme Stock Volatility.

Meme stocks tend to be very volatile. So much so, at any given moment brokerages will halt trading on them as we’ve seen many times this year. Meme stocks swing faster than Brangelina at a swingers’ convention. Meme stocks move fast because they are heavily shorted and have an emotional component that hooks people in on a gut level. Meme stocks are also mostly owned by retail traders, so institutions have a smaller impact on movements.

#4 Accept the Meme Stock Consequences.

Acknowledge the fact that these are meme stocks and along with assessing your risk tolerance know you’re playing a dangerous game. Indeed, with high risk comes big rewards but it can also go the other way. Accept this fact that you are chasing big payouts quickly. That is the cold hard facts.

#5 Kill FOMO.

You missed out? Get over it. Don’t let FOMO drive your decisions. Perfect example is MARK or Remark Holdings. We talked about it last week. I also did a follow up to it. If you haven’t seen it check those two episodes out. MARK had a huge breakout in premarket last week Monday only to crash and burn. You need to accept when you’ve missed the boat. If you open your platform and that stock you were watching is up 300% from yesterday… let it go. By the time your jump in is in the books everyone else is taking their profits and running leaving you holding the bag. There will ALWAYS be another stock to trade.