What does “Cash Gang” mean?

What does it mean when someone says they are cash gang?

Definition: Cash Gang

The saying cash gang, simply means to close all assets (sell stocks, close options, etc.) and only hold cash in your account.

Origin

This term originated on the subreddit Wall Street Bets. There are several different “gangs” that a user can temporarily join to state how they are currently trading. Cash gang means that you have sold all your assets and are sitting on the sidelines. The only risk involved is the loss of value due to inflation.

There are several reasons that someone may join the cash gang.

Investing in stocks is risky and sometimes people need a break from that risk. They sell all their stocks and close all their options so that their trading account is cash only.

A more frequent reason is that an investor just lost a lot of money on a risky trade and they need a break. Embarrassed by their loss, they need to sit on the sidelines for some time. Eventually they will need to “scratch the itch” and bet on risky trades once again.

A third reason is that they are worried about future market conditions. Anticipating a large drop in the market, they sell their assets at a decent price and hold onto their profits. Other investors will hold during market drops in hope of a future rally in prices.

Those that are currently in the cash gang share a range of emotion. If the market is crashing, they are thrilled to be on the sidelines. When the market is rallying, cash gang feels a tremendous amount of FOMO.

Examples

”Lots of red days on the market, I am going cash gang today.”

“Cash gang right now, and feeling left out of all the fun.”

“Sold 100 percent of my long positions, took profits. Cash gang for now.”

An image with the text hashtag cash gang
Hashtag cash gang. When markets are volatile sometimes we need to join the cash gang.

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