“Degen” is short for “degenerate,” a term that has been used to describe such traders who take extreme risks and engage in reckless behaviour.
These types of trading threads are typically found on social media platforms such as Twitter, Reddit, or Discord. They may also be called “meme stocks” or “Yolo trades” and often involve individual stocks or cryptocurrencies that have recently gained a lot of attention or publicity.
While some traders have made substantial profits from participating in degen trading threads, it is important to note that these types of trades come with a significant amount of risk. Due to the volatile nature of the securities being traded, losses can be substantial, and investors may find themselves at risk of losing more than they initially invested.
As with any investment strategy, it is important to do your research and exercise caution before engaging in degen trading. It is also important to understand the risks involved and to have a clear plan in place for managing risk and potential losses.