TL;DR

A Redditor brags about $1.52M in Palantir gains, but it’s a classic case of survivorship bias. Without proof, it’s just another social media flex, ignoring the inherent risks and potential losses.

Story

Another day, another fortune made in the markets. This time, it’s a Redditor boasting about $1.52 million in Palantir (PLTR) profits. Champagne wishes and caviar dreams, right?

Not so fast. Let’s dissect this “success” story. Our hero claims to have extracted $2.2 million from PLTR over three years, through long-term holds, day trading, and options. Sounds impressive, but where’s the proof beyond a couple of screenshots? Remember, social media is a highlight reel, not a financial audit.

This story reeks of survivorship bias.‣ Survivorship Bias: Only hearing from the “winners,” ignoring the countless losers. We don’t see the stories of those who followed similar strategies and lost their shirts. For every “diamond hands” millionaire, there are countless bankrupt gamblers.

The Redditor mentions selling covered calls.‣ Covered Call: Selling the right to buy your shares at a certain price. This strategy generates income, but caps your potential upside. It’s like selling insurance on your own stock—you profit if nothing exciting happens, but lose out on the big gains.

The post also shows a history of day trading. This is incredibly risky, even for professionals. It’s essentially gambling, dressed up in a suit. Remember the 2008 crash? Many day traders went from riches to rags overnight. History doesn’t repeat itself, but it often rhymes.

Finally, let’s not forget the inherent volatility of the stock market. PLTR, like any other stock, can plummet just as easily as it can soar. Today’s “millionaire” could be tomorrow’s cautionary tale. Remember the dot-com bubble? Fortunes evaporated in the blink of an eye.

This isn’t a celebration of success; it’s a warning disguised as one.

Advice

Don’t blindly follow social media gurus. Do your own research, understand the risks, and remember: if it sounds too good to be true, it probably is.

Source

https://www.reddit.com/r/wallstreetbets/comments/1ikobjk/152m_so_long_pltr_it_has_been_a_good_run/