The 10 Commandments of Meme Stock Trading

Published October 25, 2021

How do you trade meme stocks?

You trade meme stocks by understanding the unique nature of meme stocks, and by letting go of traditional trading and investing tips. To make money in meme stocks, you must learn to think differently and accept the unique risks involved.

So read the 10 commandments of meme stocks so you can face the meme stock world like a massive, powerful Silverback — and not a dirty, dishonest, hedgie.

We’re going to start by destroying a sacred meme stock concept – this “Diamond Hands” stuff.

1. Forget the Diamond Hands Bullsh*t

If that statement pissed you off, we’re not sorry.

Diamond Hands goes against everything the #wallstreetbets and meme stock movements stand for… which is freedom.

Freedom to do what you want. And freedom to compete on a level playing field. 

Here’s the truth. You’re allowed to sell whenever you want.

End of story. 

Don’t feel pressured to hang onto a stock for longer than you want.

And if you feel threatened by other people selling stocks you like… then you should stop trading stocks. 

So if you don’t like a name, sell it and move on. Life’s too short to worry about what other people think.

Think of yourself as having “Nano Hands” like Iron Man. Let your hands adapt to the situation.

2. Only Trade What You Can Afford to Lose

People have made fortunes in minutes on stocks like Digital World Acquisition Corp. (DWAC), Phunware (PHUN), and Camber Energy (CEI).

But with great reward comes great risk.

Any time it’s easy to make $20K, it’s even easier to lose $40K.

So when you buy a meme stock, you must ask yourself: can I afford to lose this money?

Because if you have to choose between paying your rent and buying a meme stock… maybe you shouldn’t be trading at all.

Sorry, but it’s true.

3. Understand Why Meme Stocks Move So Fast

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. (naked shorting and other f*ckery notwithstanding)

The result: meme stocks more more on emotion than nay other kind of stock. 

So you must…

4. Accept What You Are Getting Into With Meme Stocks

Don’t be a child. 

Accept that you are playing a very dangerous game because you want to pile up fat stacks of cold, hard cash.

It does you nothing to deny this very basic fact.


Go into battle knowing the truth.

5. Resist the F.O.M.O.

F.O.M.O. will burn you alive in this game.

Sometimes, you just need to accept that you missed something.

If you open your platform and that stock you were watching is up 300% from yesterday… it’s okay to pass on it.

You don’t have to chase everything you see. There will always be another stock to trade.

6. Watch for Fake News With Meme Stocks

There is a shocking amount of fake news in the meme stock industry.

During the DWAC boom, we saw at least 25 different rumors about little tech companies working with former President Trump’s Truth Social platform.

How many were true?

We’re guessing zero. We couldn’t find a hint that any of them was true.

The meme stock boom has attracted a lot of scammers.

So always verify the news before you buy.

7. Wake Up Early

The early ape gets the banana.

There’s no doubt that the best meme stock moves happen early in the morning.

So at the very least, you should be eyeballing the market early so you know what’s in play, and why.

Sometimes, a screaming rally can be over and done with before the opening bell rings.

Most of the time, you need to watch the market at 8 am or earlier.

But we’ve seen some meme stocks peak before 5 am, like Remark Software (MARK) on October 25, 2021.

8. Be Careful With Options

Options on meme stocks tend to be extremely expensive.

That means you’re always fighting an uphill battle when you go long options on meme stocks.

You can trade options on meme stocks, but to make money, your stock must move really fast, really soon.

Otherwise you’ll lose big.

9. Forget About Regular Stock Analysis

Meme stocks are about energy and emotion.

Stuff like P/E ratios and balance sheets and earnings don’t matter.

To win with a meme stock, you have to get in ahead of other buyers.

And you need to get out before your meme stock goes rotten.

That’s the entire game.

10. Trade With a Gang

The meme stock game is chaotic.

And your family and friends will never understand the ups and downs you go through when you trade unpredictable stocks like AMC and GameStop.

What’s why we formed ApesRT, which offers a 100% FREE newsletter (sign up below) and a Discord server for chatting live with hundreds of other meme stock traders.

Do you have a #1 tip for trading meme stocks?

Let us know in the comments below!

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    AMC 
    $24.21  $0.23 
    GME 
    $39.68  $1.06 
    DWAC 
    $29.63  $0.13 
    PHUN 
    $1.66  $0.05 
    MARK 
    $0.54  $0.03 
    DATS 
    $1.25  $0.01 
    PLTR 
    $9.91  $0.0000 
    BBBY 
    $16.00  $3.05 
    CLF 
    $19.23  $0.44 
    DNUT 
    $14.65  $0.14 
    CRSR 
    $17.32  $0.15 
    NEGG 
    $4.09  $0.2 
    TSLA 
    $927.96  $27.87 
    NVDA 
    $190.32  $3.23 
    AMD 
    $101.01  $0.18 
    BBIG 
    $0.7117  $0.0000 
    SDC 
    $2.13  $0.4 
    GREE 
    $4.65  $0.49 
    WISH 
    $1.66  $0.03 
    CEI 
    $0.364  $0.003 
    FAMI 
    $1.15  $0.01 
    AFRM 
    $38.42  $0.77 
    CFVI 
    $10.24  $0.02 
    >