If you’re wondering what a ‘stonk’ tip is, I’m going to breakdown everything you need to know. They’ve become somewhat of an internet sensation. Here’s where the word came from and what it means.
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What is a ‘stonk’?
A ‘stonk’ is the deliberate misspelling of the word ‘stock’. It’s not exactly highbrow humour, but that’s the point.
Some retail traders on forums like Reddit pride themselves on not being super smart, owning their shortcomings and not pretending to be hot-shot investors.
The word itself gathered mainstream attention back in January when Elon Musk sent out the tweet “Gamestonk!!” during the escalation of the GameStop saga. It’s quite amazing that as one of the world’s richest people, Musk still finds time to be an internet troll!
Where did the word ‘stonk’ come from?
The word’s first use was on Facebook meme pages a few years ago. Its recent explosion has seen it become somewhat of a worldwide trend.
As a deliberate misspelling, the purpose is to just poke fun. People either use the word to make fun of their own financial incompetence or to laugh at others who think they’re good with money.
Much like the deliberately misspelt ‘hodl’ has become standard language in the cryptocurrency community, ‘stonk’ is becoming a staple amongst internet retail investors.
Why have ‘stonk’ tips become popular?
A ‘stonk’ tip is just internet slang for a stock tip. With the massive boom and mobilising of retail investors, this term can highlight ironically bad investments.
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As we’ve seen, an investment might not be good by traditional standards but with enough public backing, a poor stock can perform quite well in the short term.
Bringing some humour into the world of investing is admirable. But it’s important to know that many ‘stonk’ tips are ironic. Be very wary about getting your investing tips from social media and places like TikTok. The joke doesn’t seem so funny if you end up losing lots of money following bad investment advice.
Where can I find some real stock tips?
If you’re looking for some investing guidance that isn’t just a joke, we have plenty of resources here at MyWalletHero and over on The Motley Fool.
For someone just starting out, it may seem like a good idea to follow other people’s advice. However, if you’re learning, you may be better off using something like an investing solution platform where professionals can select your investments for you.
Alternatively, a cheap share dealing account is useful if you’re set on picking your own ‘stonks’. This way you can start off with smaller investments while you’re learning about the market.
It’s great that more people are showing an interest in investing. Being unafraid to make small mistakes can be a good way to learn and is better than being too scared to begin your journey as an investor.
Just be sure to remember that you don’t want to end up being the butt of the joke. You’ll be the one laughing in the end if you become a proper investor and not a ‘stonk’ trend follower.
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