Join the financial revolution

Hermes

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May 8, 2017
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I wonder if any of you have been seeing what's been going on with the stock market especially with some stocks like Gamestop, bed bath, AMC and blackberry. The great community at wallstreet bets on reddit have literally figured out how to manipulate the market to their favour and finally stick it to the wall street hedge funds that have been manipulating the markets for years at the expense of the little guys.

I think it's great example how collectively millennials and zoomers can shape changes in a flawed system.

Anyways for those that follow the markets and are interested pay attention as this could be the start of something big.


Hedge funds already purported to have lost almost 5 billion dollars due to this. What a wonderful wonderful thing!!
 






justjess

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Mar 16, 2017
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I saw a little something on the game stop thing but honestly don’t understand it that much... how exactly are they doing this?
 






Hermes

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You can play the markets in many different ways. One of the most noticeable thing for any retail investor is how institutional investors hold so much sway in the market because they have the capital to manipulate it. They do this often using a strategy called short selling. With short selling you borrow an x amount of shares from a company thru your broker with an expiration date to provide those shares back to your broker by (timelines vary for expiration). The goal here is that you believe the stock price will fall so you borrow the shares, sell it at the current price on market, and when the price drops you buy back the shares to give back to your broker but you profit the rest. For instance, if you borrow 1000 shares of x company at $5 you have borrowed $5000 shares and you sell it to the market at that price. Now your expiration for returning the borrowed shares may be a month away. So that week the share price drops to $2 and you buy 1000 shares at $2000. Now you give the 1000 shares back to your broker and your profit is the $5000-$2000 = $3000.

Now the problem is if the stock goes up you're screwed. Because if that same stock went up to $10 a share you'd have to pay $10000 to buy back 1000 shares to give to your broker.

Hedge funds do this all the time to manipulate stock prices and they coordinate short seller attacks on specific stocks. Retail investors who are unaware of this knowledge often get stuck in an upward craze on stock only to see the market manipulate the stock back down and are left holding the bag.

With new trading methods like Robin hood, millennials and gen z (that's what zoomers are) have started to understand the data more. In the case of Gamestop there was a 140% short sell interest, that means some how hedge funds were borrowing more shares then those that existed because they felt Gamestop would continue to drop in price. All market fundamentals point to this being the case because Gamestop is a dying company and its valuation was going down.

However, retail investors actually saw the bs for what it was so they coordinated what is called a short squeeze attack. Literally an army of retail investors on reddit decided to keep buying the stock to drive up share price and have short seller hedge funds like Melvin capital cover their positions which were over 100%.

Instead of seeing what was happening these hedge funds doubled down their bet. That did not stop the investors on reddit who have pumped the price from like $6 to $350 in a spam of less than a month. This is causing so many losses to these hedge funds but it has helped so many of the little guys along the way. It is a truly amazing thing to observe.
 






Hermes

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I should mention when hedge funds are shorting a stock they also use their financial means to influence the media to help drive the price down.
 






Helioform

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Oct 2, 2017
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It's not a "financial revolution." It's a pretty dangerous short squeeze which will leave Gamestop stock to be massively overvalued, causing a bubble which will pop very quickly. Then those who own it will be left holding the bag because short sellers knew the company was going under soon. Short selling is not a scam it is a way to make a profit knowing a stock will tank. I dont see why these redditers are viewed as some kind of "heroes." It wont last.
 






Hermes

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It's not a "financial revolution." It's a pretty dangerous short squeeze which will leave Gamestop stock to be massively overvalued, causing a bubble which will pop very quickly. Then those who own it will be left holding the bag because short sellers knew the company was going under soon. Short selling is not a scam it is a way to make a profit knowing a stock will tank. I dont see why these redditers are viewed as some kind of "heroes." It wont last.
Of course it won't last and of course they are overvaluing the company to the moon. It's just interesting to see because they literally used social media to manipulate this stock against the institutional investors and that to me is definitely revolutionary. If you understand how markets manipulate any good trader knows there is value to following institutional investors because they are the system. This was a big fuck you to that system.

And no one said short selling is a scam but its an integral way that the market is manipulated by institutional investors. It is just as risky as this short squeeze attack and guess what the people are winning right now not institutional investors that are having to cover their losses.
 






Joined
May 18, 2018
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LOL. The leftards at VICE are already blaming this on, you guessed it...
View attachment 51310
These people have no shame

i think it’s awesome what they did. They noticed hedge funds had shorted 103% of the stock. They were probably thousands of people out of work from the corona operation that had nothing better to do but literally sit there and look at charts of who was shorting what. So they bought the stock and billionaire hedge fund ceos are crying on tv asking them to sell, telling them what terrible people they are for doing this. F them, they got played at their own game, a bunch of billionaires who speculate on capital and don’t produce anything of value, and literally illegally manipulate the markets so that their kind keeps gaining. No sympathy from me, I’m really happy a bunch of 20 year olds are millionaires from this.
 






Aero

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Mar 13, 2017
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The Reddit forum is back, I guess.

These people are no different than some big hedge fund investing top dollar into a company. Like Warren Buffet could decide to buy stocks in some company, and that companies price will go up. There's nothing wrong with that; that's literally how the stock market is supposed to work.
 






Joined
Apr 13, 2017
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Robinhood, for all its faults, has allowed retail to trade commission free and the nodes of decentralised knowledge networks such as Twitter & WallStreetBets has allowed the spread of sophisticated, well informed analysis. Whilst it is up to the individual investor to separate the cash from the trash, the fact that high quality analysis is now easily accessible for free has enormously levelled the playing field. Moreover through these same social networks, people can discuss their fears, temper their wild dreams and collectively come to more informed decisions regarding their investments.

This is troubling for Wall Street. It has thrived and lived off ‘dumb money’. When ‘dumb money’ gets smart their jobs get hard. When ‘dumb money’ gets big, they start getting scared.
What was remarkable about the GME phenomena is that millions of small investors stuck to a thesis through thick and thin; the price volatility (instigated by the short sellers to create fear) could have scared off the paper hands but the collective security of a reassuring community turned that paper into diamond. Every single day a barrage of fresh memes were published reassuring the community of their thesis and quelling fears. Remarkable videos, voice overs, mix tapes, novellas were all written to keep the community spirit. Half of the success in a trade is having the conviction to see it through and the online communities provided exactly that.

It fundamentally changed the playing field. It made ‘dumb money’ smarter, it made retail collectively powerful and it gave them the conviction to see the trade through. It violently upsets the status quo and makes Wall Street traders work harder. It reduces their edge and hurts their bottom line. This will not sit well and there will be a reckoning. Accusations of market manipulation, of paternalistic concern will be made. They are PR speak for ‘they took our money and we want it back’.
 






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