Many investors today turn to popular online forums or mimic Wall Street strategies in hopes of making quick profits. Social media platforms, especially Reddit threads like WallStreetBets, have influenced countless trading decisions. While this has led to viral trading moments, renowned trader Corrado Garibaldi, a.k.a. Lord Conrad, strongly advises against following such crowds. Let us look at why Garibaldi advises against going with the herd, and how his ideas can guide a more thoughtful trading strategy.
Why Does Garibaldi Recommend Against Following Wall Street and Reddit Traders?
Crowd Thinking Is Rarely Right
According to Lord Conrad, markets don’t move in the direction everyone expects. He warns that following the consensus can lead to failure rather than success. “Markets don’t reward consensus thinking. They punish it.”
This quote explains a central idea in his philosophy: when too many people believe a trade is safe or profitable, it likely means that the trade is already crowded and overpriced. By the time most people are aware of an opportunity, the edge is usually gone. If everyone is jumping into the same stock or asset class, there may be little room left for growth, and risk often becomes higher.
The Risk of Herd Behavior
Social media can often create a false sense of confidence. When a Reddit post gains traction and shows someone making large returns, thousands might follow without understanding the underlying risks or details. Similarly, Wall Street’s public statements and financial news can create momentum that leads many retail traders into the same trade.
But Garibaldi reminds us: “If 99% of people agree on a trade, it’s probably the wrong move.”
The market doesn’t operate like a democracy where the majority rules. In fact, once the majority agrees on something, prices usually reflect that belief. So, any further gains are minimal, and downside risk increases. This is often the case during market bubbles or panic selling.
Look Where Others Don’t
Garibaldi suggests that the best opportunities are found away from the crowd. Rather than looking at what’s trending, he examines areas that are being ignored or misunderstood.
“The masses are almost always wrong at extremes. That’s where the real opportunities lie.”
This idea can be seen in historical examples. During market crashes, most people panic and sell, yet those who calmly assess the situation and buy undervalued assets tend to benefit the most in the long run. The same is true during extreme rallies—when hype drives prices beyond fair value, it often leads to sharp corrections.
Conclusion
Corrado Garibaldi doesn’t follow Reddit threads or Wall Street commentary because he believes real success comes from quiet thinking, patience, and avoiding the crowd. His quotes highlight the risk of following the majority, especially during moments of extreme optimism or fear. If you are planning to grow as a trader, take Garibaldi’s advice seriously.
