[Rancid]

@Potemkin, @JohnRawls

It's worse than I thought! I read something that said many of the people buying Gamestop were doing it on Margin accounts!!!

Oh lordy lordy. There's a slew of people that not only lost money, but will come out of this in debt!


Apparently Robinhood is very predatory. Their app tries to "game-afy" investing. THey will often send you click/buy bait notifications like "Check out this hot stock before you miss it!". Stuff like that. Basically trying to bait people into doing more trades. This company sounds like total shit.

At work, when we get new freshout of college kids, they always get big into trading because they finally have some money. My warning to them is always "if someone describes a stock as exciting, that is a code word for risky. The best investing is boring, you want your investing to be boring, that is how you achieve sustainability." It's also how you don't waste your life away chasing stocks.

[colliric]

Boring: Capital Gains based investment and Dividend stocks
Interesting: WallStreetBets and Bitcoin. Ride or die!

Hey Igor.... Bitcoin reached 51K a day or so ago. You cashed out slightly too early mate.

https://www.pcgamer.com/au/after-gamest ... e-hurting/

Some financial experts are expecting the GameStop price to rise again once restrictions are lifted since WSB seems obsessed with doing it again.

Jordan Belfort is predicting Robinhood to be sued.

[Rancid]

The gamestop play is purely a (quick) capital gains play.


Anyway

Boring: Capital Gains based investment and Dividend stocks

Interesting: WallStreetBets and Bitcoin. Ride or die!

[Potemkin]

Those who do that usually see the trend ongoing and fear that they have no chance to ride.

That's not a good frame of mind in which to bet your life savings, @Patrickov. Lol.

[Potemkin]

@Potemkin, @JohnRawls

It's worse than I thought! I read something that said many of the people buying Gamestop were doing it on Margin accounts!!!

Oh lordy lordy. There's a slew of people that not only lost money, but will come out of this in debt!

I know I should feel sorry for those chumps, but I don't. Does that make me a bad person?

Apparently Robinhood is very predatory. Their app tries to "game-afy" investing. THey will often send you click/buy bait notifications like "Check out this hot stock before you miss it!". Stuff like that. Basically trying to bait people into doing more trades. This company sounds like total shit.

It takes two to tango - someone has to be the predator, and someone has to be the chump. Someone has to be the lion and someone has to be the antelope. It's the natural world in all its brutal glory, @Rancid. It's a beautiful thing.

At work, when we get new freshout of college kids, they always get big into trading because they finally have some money. My warning to them is always "if someone describes a stock as exciting, that is a code word for risky. The best investing is boring, you want your investing to be boring, that is how you achieve sustainability." It's also how you don't waste your life away chasing stocks.

Wise words, @Rancid. I bet none of them listen to you. Lol.

[colliric]

If you go to the Reddit forum, you will see most of them made out like bandits and most that "lost" don't appear to give a shit(legit one bloke is boasting about his $600000 loss). Quite a few holders is keeping the stock price at about $100, combined with a GameStop management shake up as they hired a slew of new VPs.

If you bought at less than $200, hold on to the stock, they're planning to rocket it again once trading restrictions are lifted.

It's not over.

[Patrickov]

That's not a good frame of mind in which to bet your life savings.

I don't. But I usually find myself getting in at a local low, but not the universal low, and often forgetting to let go at the high.

I never pour all my life savings in.

[JohnRawls]

If you go to the Reddit forum, you will see most of them made out like bandits and most that "lost" don't appear to give a shit(legit one bloke is boasting about his $600000 loss). Quite a few holders is keeping the stock price at about $100, combined with a GameStop management shake up as they hired a slew of new VPs.

If you bought at less than $200, hold on to the stock, they're planning to rocket it again once trading restrictions are lifted.

It's not over.

That is not how it works. Although people were pretending that they don't care but they actually do. This GameStop situation is quite similar to Pump and Dump schemes with the exception of shorts being involved. Most people participating in those pump and dump schemes don't realise that they are not the one that are exploiting but they are the exploited. It is their money that is at stake and not somebody elses.

The essence of Pump and Dump is to start buying a large amount of some semi-obsure stock, crypto, etc and convince others to do the same so the prices will "Go to the moon". But little do people participating realise that it is essentially their money that is driving the stock crypto etc up so as soon as people will start selling then it will go down. So the whole idea behind Pump and Dump is to abuse the craze that you managed to create, wait for decent profits and start selling first. That is it.

Long story short: You sucker in idiots to buy stock/crypto/etc with you and you just sell first. Which kinda means that some will not profit depending on how many people understand what is going on.

[B0ycey]

If you go to the Reddit forum, you will see most of them made out like bandits and most that "lost" don't appear to give a shit(legit one bloke is boasting about his $600000 loss). Quite a few holders is keeping the stock price at about $100, combined with a GameStop management shake up as they hired a slew of new VPs.

If you bought at less than $200, hold on to the stock, they're planning to rocket it again once trading restrictions are lifted.

It's not over.

History repeating itself.

Perhaps this is the price of stupidity. You buy big and the prices drop you lose money. I guess nobody has learned from the Dutch Tullip craze. And this is just like bitcoin. The prices are destined to drop because the company isn't worth anything hence the bet to short. There will be winners of course. Those who jumped in early. Those who jumped in late or are planning to reinvest will lose money. The irony of course is that investors who might have even originally betted on the short and who were quick to pick up on what was happening may well win twice. Once for betting long and the second for the destined short they originally bet on. You can't beat the system. The shares are destined to fall when people sell. Because even a cheap price is better than no price under bankruptcy.

[colliric]

@JohnRawls going to the WallStreetBets forum shows you that most on that site clearly made money. Since they came on at the very beginning and sold when Robinhood blocked further buys(indicating obvious peak).

A lot are still holding the stock since they bought at the beginning and it's still 4 times as valuable as before the spike, and they are clearly planning a second run at it as soon as the restrictions lift.

GameStop also shook up their management and appear to have timed the announcement to help the stock from crashing back completely and/or to get out good news while they're in the news. It won't go back down to $20 anytime soon.

[Rancid]

Wallstreetbets has some post around "Stop f***king selling"...

[colliric]

Wallstreetbets has some post around "Stop f***king selling"...

It dipped to $50, but restrictions were lifted and it's risen back to $75 in first hour of trading.

[Ganeshas Rat]

I wonder how people who say "it's a bubble", "how stupid", "better to play a lottery" ignore the fact that the whole thing started because hedges shorted 140% of Gamestop'. It turned into win-win lottery at that point.

[Rancid]

It dipped to $50, but restrictions were lifted and it's risen back to $75 in first hour of trading.

That's noise. It will continue to drop and eventually settle. $50 is still to high.

That said, lots of people have already lost lots of money, even at $75.... so I don't know what you are even trying to say here.

I wonder how people who say "it's a bubble", "how stupid", "better to play a lottery" ignore the fact that the whole thing started because hedges shorted 140% of Gamestop'. It turned into win-win lottery at that point.

I don't understand the point you are making here. Further, nothing in the market is win-win. That doesn't make sense.

[Ganeshas Rat]

I don't understand the point you are making here. Further, nothing in the market is win-win. That doesn't make sense.

It's not a market situation. Actually I'm not even sure if they (funds) didn't violate law by shorting over 100%. The funds would need to buy all of the stocks in the market and do it again to close their positions. It was never a question of "would they", it was just "when". One who could use it for their own gain and didn't is an I D I O T.

[JohnRawls]

It's not a market situation. Actually I'm not even sure if they (funds) didn't violate law by shorting over 100%. The funds would need to buy all of the stocks in the market and do it again to close their positions. It was never a question of "would they", it was just "when". One who could use it for their own gain and didn't is an I D I O T.

You misunderstand what 140% short means. It means that the stocks quantity shorted IN TOTAL was 140% but the dates on each separate short is different. So it is not like you need to buy 140% of stocks on 5th of February 18.00 stat. So they were spread out across different months and probably even years. There is literally nothing wrong with that situation.

[Ganeshas Rat]

So it is not like you need to buy 140% of stocks on 5th of February 18.00 stat.

Not really. You can't keep your shorts open for indefinite time. You'll need to buy at some point. There's a place for stupidity but those who used their own capital to buy before the prices skyrocketed to 10000% did the most rational thing ever. They didn't risk anything at this point. Maybe loss of the potential income if their squeeze didn't work out.

[JohnRawls]

Not really. You can't keep your shorts open for indefinite time. You'll need to buy at some point. There's a place for stupidity but those who used their own capital to buy before the prices skyrocketed to 10000% did the most rational thing ever. They didn't risk anything at this point. Maybe loss of the potential income if their squeeze didn't work out.

Shorts are until date x. They do not expire all on the same day. So they can expire in couple of months or they can expire in couple of years. Being 140% shorted means that total number of those shorts expiring from today till like 5-10 years in the future is 140% percent so i do not see how that is a major problem. I am pretty sure those shorters are planning to buyback and then sell again straight away to make money.

I am not a specialists at how shorts work but as much as I understand is that you take a short and you pay rent on it. After it expires you HAVE To buy the stock and if it is lower than it was then you basically get paid and if its more then you are screwed and you loose money. But to make profit or recoup the losses you basically sell the stock straight away. So that 140% is meaningless if it is not in a short span of time.

[Ganeshas Rat]

Being 140% shorted means that total number of those shorts expiring from today till like 5-10 years in the future is 140% percent so i do not see how that is a major problem. I am pretty sure those shorters are planning to buyback and then sell again straight away to make money.

As far as I know, there is no other precedent of a company being shorted so much in a short span of time. One could interpret it as normal market business (as you do) or market manipulation through cartel agreement. Which is what I mean by saying this is borderline illegal. But this is for the court to decide, of course.

Meanwhile there's nothing irrational about people seeing the anti-bubble, the company whose stocks were artificially pushed down through extensive shorting and buying them. It's exactly market behavior.

[Rancid]

Actually I'm not even sure if they (funds) didn't violate law by shorting over 100%.

It's legal. It just means they were taking on a large risk.