[ad_1]
The main Fox Business Flash titles are here. Find out what clicks on FoxBusiness.com.
Some investors picked up a flyer about the shares of GameStop Corp. in the hope of making enough money to pay off the debt. Now, after a wild January with a 1625% increase, the hard part comes: deciding when to sell.
With the hot stock plunging on Thursday, the issue became more urgent.
Den Kovacs, a 25-year-old IT professional living in Detroit, transferred $ 1,000 of his emergency savings and $ 200 that he had set aside for his student loan payment to his Robinhood account – all of it in an effort to get a share of the GameStop mania. On January 25, he sold his other shares to buy four GameStop shares at $ 80. After selling four shares for $ 212 on Jan. 26, he bought six more shares at $ 292, according to trade receipts provided.
His ultimate goal: to earn enough money to pay off his $ 7,000 debt on his credit card.
| Teleprinter | security | Latest | Change | % Change |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 325.00 | +131.40 | + 67.87% |
PROVE THAT HANDLING GAMESTOP WILL BE DIFFICULT FOR DRY, OTHERS
Mr. Kovacs and many other individual investors followed the frenzy on Reddit, Discord and other platforms. On Friday, Mr Kovacs sold his remaining seven shares for $ 352 and said he planned to use the earnings – nearly $ 2,500, according to business receipts provided – to pay off some of his credit card debt. .
“I want to put myself in a position where I’m not in debt like that,” he said. “It hurts my credit rating, and I want to be able to move somewhere else. So I want to pay off my debt with everything I’ve earned.”
As a forum, WallStreetBets usually scoffs at those who sell because many want to leverage the power of the group to keep the rally going. But when it comes to paying off debt and meeting other savings goals, some users have changed their minds.
A Redditor posted a screenshot of what he said was his last student loan payment: $ 23,504.45 from GameStop transactions.
“I never thought I would have paid for this so soon,” the user said.
Some investors picked up a flyer about the shares of GameStop Corp. in the hope of making enough money to pay off the debt. (AP Photo / John Minchillo)
For some traders who plan to use their windfall profits to eliminate student debt and pay off other obligations, it’s worth it.
Amina Spahic, a 28-year-old communications specialist from Florida, initially bought it two weeks ago for $ 38 a share. She has already used some of her GameStop earnings to pay off her debt and put the rest back into GameStop. Having already moved earlier this week, she said she had no plans to sell at this time.
“I knew there was growth and potential,” she says. “I said to everyone I knew, ‘I see this on Reddit. Do it.'”
ROBINHOOD EXTENDS TRADING RESTRICTIONS TO 50 SHARES
Average millennial credit card debt edged up to $ 4,322 in the third quarter of 2020, according to an Experian analysis. More than 22 million borrowers with direct federal student loans have suspended payments during the pandemic, according to data analyzed by Mark Kantrowitz, author of “How to Appeal for Increased College Financial Aid.”
Some traders have started to consider payouts for money milestones that remain out of reach.
Anthony Eleftheriou, an 18-year-old university student living with his parents in London, only started investing a month ago. He bought 25 GameStop shares for $ 50 on Jan.22, and he said he plans to own it for now, perhaps even using his earnings to pay for tuition.
“I kind of wanted something quick and rich, but now it’s become more of a long-term thing,” he said.
Now, after a wild January with a 1625% increase, the hardest part for GameStop investors comes: deciding when to sell. (iStock)
Joe Ballent, a 32-year-old medical assistant working in Cheyenne, Wyo., Said he prioritizes some other goals before his student loan debt with his GameStop earnings: first, paying for his next marriage, and then save up to buying a house. Both seemed out of reach ahead of the GameStop rally, he said.
“I feel like there are a lot of people who never made it through. I took on six figures of debt [for graduate school] and i worked two jobs before school, but now i can’t afford to buy a house? “
Mr Ballent started investing more money in the market last year, first with RobinHood, then with accounts at Vanguard and Schwab. Now he has invested over $ 10,000 in GameStop, according to the commercial receipts provided. He slowly sells stocks, using some of his earnings to pay for the marriage and help a loved one with medical bills. Once he has fully sold himself, he wants to start his search for housing.
“I’m sure I’m just a little fish compared to some of these people,” he said. “But it’s important to me, and I always want to see where it’s going.”
GET FOX BUSINESS ON THE ROAD BY CLICKING HERE
Following RobinHood’s decision to join other brokerage firms to restrict trading in sharply rising stocks, Miss Spahic said she plans to close her positions and remove the app. She’s still following the conversation on Reddit to determine which brokerage she’ll pick as her replacement.
“I follow what each of them is saying closely,” she said. “I wait to see who wins and say they are for the people.”
Meanwhile, Mr. Kovacs and others are keeping their eyes on WallStreetBets.
“I think people recognize that there is an opportunity here,” he said. “You see these gains and look at what happened earlier this week and you’re like, ‘Is everyone collectively right or is everyone collectively wrong? Exactly like me. “
Marco Quiroz-Gutierrez contributed to this article.
[ad_2]
Source link