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YOLO
(You Only Live Once)
YOLO is an investment philosophy popularized by meme stock traders that justifies high-risk speculative bets based on the premise of limited lifetime opportunities. The term became a rallying cry during the 2021 STONKS craze, with traders pouring savings into volatile assets like GME or DOGE.
While sometimes profitable (some Reddit traders turned $5,000 into $500,000 during the GameStop short squeeze), YOLO strategies statistically underperform disciplined investing. A 2022 study showed 80% of YOLO traders lose money within one year. The approach contrasts sharply with traditional strategies like DCA or value investing, instead embracing extreme risk for potentially life-changing returns. Psychologists note YOLO mentalities often emerge during market bubbles when FOMO overrides rational analysis.
While sometimes profitable (some Reddit traders turned $5,000 into $500,000 during the GameStop short squeeze), YOLO strategies statistically underperform disciplined investing. A 2022 study showed 80% of YOLO traders lose money within one year. The approach contrasts sharply with traditional strategies like DCA or value investing, instead embracing extreme risk for potentially life-changing returns. Psychologists note YOLO mentalities often emerge during market bubbles when FOMO overrides rational analysis.