Shares of GameStop and AMC found another stage to run on Wednesday, recording the strongest trading day since a short internet-fueled shortcut sent stock prices into the stratosphere last month.
AMC shares closed 18% higher at $ 9.09, and GameStop doubled to $ 91.70 weeks after the so-called “stock meme” frenzy cooled. Retail investors got behind a basket of recommendations on the Reddit Wall Street Betting forum, hoping to expose an unusually high interest rate hedge fund in a series of actions.
While the rally was short-lived, CNBC’s Jim Cramer advised on Wednesday that young traders who take advantage of commission-free transactions on brokerage applications such as Robinhood should rely less on speculative transactions and return to basics. of investments.
“If you really want to beat the big institutions in your own game, you don’t do it with GameStop and AMC. You do it with split actions and you do it well,” said Mad Money host. “The $ 500 club … is the way you make real wealth.”
The comments come after major US averages also compiled their best trading day of the week. The Dow Jones industrial average added 424 points to reach a new closing high of 31,961.86, up 1.35% from Tuesday. The S&P 500 and Nasdaq Composite both closed down about 1% more.
As individual investors continue to get clues from Reddit to reach stocks like GameStop, Cramer has warned against the dangers of group thinking in the marketplace.
“At the end of the day, this is not a team sport,” Cramer said. “Instead of pursuing these risky meme pieces, instead of getting caught up in making mistakes, why not try to invest in the long run?”
After the market closed, the name Cramer gave up 12 proven shares trading over $ 500, a price that is not usually available to investors who lack a lot of capital to work. Due to the fractional shares, in which a portion of the shares can be purchased, shares with large dollars, such as Amazon or Chipotle, may not be too far to reach, he added.
“Some [these stocks] I’m still down, even after today, “the host said.” I want you to choose three and start shopping. “