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Merged Wall Street Bets subreddit / Too late to buy Gamestop stock?

The trick to making money by selling short is timing, which is very tricky.l
I don't have much sympathy for either side here. I dislike the big hedge funds, but have no respect for the yahoos on Reddit who were trying to play a game they knew nothing about.
Noboey would buy such crappy stocks like Gamespot or AMC unless they were planning on selling short.
 
ChrisBFRPKY said:
Hilarious! Hedge funds losing billions on shorts!

Interesting that the Robinhood app stopped members from purchasing until the hedge funds got out of Gamestop. Something a wee bit disturbing there...I'm reading that Janet Yellen received over $800K in speaking fees from Citadel, owner of Robinhood.

Was a phone call made?
Click to expand...

You managed to find a way to badmouth Biden over this, I see.

And making heros out of a bunch of yahoos who tried to beat the pros at the game of selling short, and failed.
You are like many right wingers;claim to love the free market but not understanding how it operates;Hint:it usually does not like stupidity.
 
Brainster said:
Long-term, the stock is likely to be a dog. This was probably a good year for them; with everybody stuck at home I'd suspect used game sales were up nicely. But games are rapidly shifting to the download model, which means the product is going to disappear. Plus they are getting a lot of competition from the mini-consoles that have come out over the last few years.
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'


Download has been the main distribution format for games for many years now. Used games are a dead market (except for older games) because of DRM.
 
I hatt Hedge Companies, but the atttempts to portray the Reddit mob as some kind of heroic people's resistence is just plain idiotic. They were trying to make money by selling short just the same as the Hedge funds,but they were inept at it.
 
dudalb said:
You managed to find a way to badmouth Biden over this, I see.

And making heros out of a bunch of yahoos who tried to beat the pros at the game of selling short, and failed.
You are like many right wingers;claim to love the free market but not understanding how it operates;Hint:it usually does not like stupidity.
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When or if I choose to badmouth Biden, you'll know it.

I think you'll find the hedge funds ultimately failed, not the "yahoos". There's a class action against Robinhood.

I love the free market. That's why I've been loading up on Bitcoin since it was $300 bucks a pop.

Stupidity is a personal view I suppose. Although I wouldn't be so careless as to tag an entire group of people with a label. People might think I was a bigot.


Good piece about Robinhood by Chris Cuomo on CNN: https://www.youtube.com/watch?v=6fs_lyGn4YA
 
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I've seen some serious antisemitic messages connected with this thing.

I don't know whether they constitute the chicken or the egg in terms of this particular action; but there's a lot of people who apparently equate hedge fund traders losing money with "Jews" losing money, and they are quite pleased with what's going on and are saying so.

[imgw=400]https://pbs.twimg.com/media/Es00r1vXUAIeqlS?format=jpg&name=small[/imgw]


As a supporting argument to this, it should be noted that Discord has said that it banned the WSB channel due to hate speech and misinformation, not anything to do with trading or this recent activity.
 
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dudalb said:
I hatt Hedge Companies, but the atttempts to portray the Reddit mob as some kind of heroic people's resistence is just plain idiotic. They were trying to make money by selling short just the same as the Hedge funds,but they were inept at it.
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Well, but if this demonstrates how corrupt the market fundamentally is with different rules for the curse that are the hedge funds, then should we not applaude these Reddit people? And were they inept if they were stopped by gaming the rules by the elites? Or should they have guessed how fixed the game is?
 
SuburbanTurkey said:
Yes. From their mission page:

Robinhood’s mission is to democratize finance for all. We believe that everyone should have access to the financial markets, so we’ve built Robinhood from the ground up to make investing friendly, approachable, and understandable for newcomers and experts alike.
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yanking the ability to trade on this stock, seemingly for the benefit of elite brokers, is an unforgivable sin. I imagine most people will look elsewhere for service in the future.
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Let me just add that for someone who bought his first shares in the early 1990s, this "democratization of finance" is just hogwash. We've already accomplished that. OK, I can't do HFT from my laptop and there are lots of derivatives contracts that aren't available to anyone who doesn't have a billion in collateral, but for all the practical purposes that make sense, I'm now as close to an equal footing with the pros as I can. Consider:
  • I can get realtime quotes from any market. I don't have to wait until getting my hands on tomorrow's paper to know how my stocks are doing.
  • I can do real-time trades. I don't have to call my broker on the phone or go to the bank and fill a form with a pen.
  • Buying or selling is seriously cheap. If I buy shares with €500, I don't have to wait for them to go up 5% just to break even.
  • When a company issues a profit warning, publishes a quarterly report or gives out any information of note, it's available to me instantly. I may not be available to read it, but that's not the market's fault.
  • OK, I probably can't invest directly in the Vietnamese, Pakistani or Kenyan markets, but still the markets available to me as a private investor far outstrip the number of markets I can keep track of.

And yeah, I don't have to take share certificates out of my safety deposit box and go to the bank counter with a coupon to receive dividend payments either.

This was all pretty much accomplished by the time the dot.com bubble burst.
 
Checkmite said:
I've seen some serious antisemitic messages connected with this thing.

I don't know whether they constitute the chicken or the egg in terms of this particular action; but there's a lot of people who apparently equate hedge fund traders losing money with "Jews" losing money, and they are quite pleased with what's going on and are saying so.

[imgw=400]https://pbs.twimg.com/media/Es00r1vXUAIeqlS?format=jpg&name=small[/imgw]

As a supporting argument to this, it should be noted that Discord has said that it banned the WSB channel due to hate speech and misinformation, not anything to do with trading or this recent activity.
Click to expand...

Having been a participant in a couple of Finnish-language online investment groups, I'm not the least bit surprised by this. I've met some bright people there too, but it seems like the issue of money combined with the complexity of the market attracts a lot of kooks. Add to this the fact that when investing in stocks becomes fashionable, you shouldn't be buying but already owning or maybe even selling, and the situation is ripe for conspiracy-minded folks to be absolutely certain that someone - or (((someone))) - is ripping them off when they don't get rich quick or at all.
 
How to make a lot of money fast.
1. Buy a lot of stock in a small company.
2. Go to Reddit and persuade people (suckers) to buy that stock for LOLs.
3. When the price shoots up, sell your stock for a massive profit.

The price of the stock will go down, but it will be the suckers on Reddit who will lose their money.
 
dudalb said:
The trick to making money by selling short is timing, which is very tricky.l
I don't have much sympathy for either side here. I dislike the big hedge funds, but have no respect for the yahoos on Reddit who were trying to play a game they knew nothing about.
Noboey would buy such crappy stocks like Gamespot or AMC unless they were planning on selling short.
Click to expand...

Not necessarily. Since the shares are currently over shorted buying and holding can be a pretty good strategy to make money. The idea that SWB is using is somewhat similar to what Porsche did with VW shares back in 2008, or what Martin Shkreli would do in 2015 with KaloBios shares. If enough shares are locked up, or you control enough shares, then when the short sellers have to hedge their losses the price starts to increase because there aren't enough shares in circulation to cover the shorts.

That's what the WSB people are trying to do. Buy up Gamestock shares and then refuse to lend them out causing the price to rise as the short sellers have fewer shares to buy back to cover their failed bet.
 
It's like every week has to have a weird crisis controversy. I wonder what next week's will be? I'm guessing animal attacks in a surprising place, or a celebrity going on a crime spree.
 
Heh. I got an email from Charles Schwab urging "caution" in "these unprecedented events". Managed to never actually mention Gamestop or Reddit or anything specific. No doubt they were worried that they might actually be informing customers who hadn't known about a bubble who would then rush to join in.
 
I'm amazed at how well the media and financial institution have jumped in to respond to what, I'm assuming, is the first ever case of reckless trading in the history of the United States Economy.

It's a good thing I don't live in a world where the Wall Street Inner Circle has been playing this same game with much bigger stakes for decades with at best the implicit silence and at worst the open support of the same antics.

It's a good thing I don't live in that world.
 
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