Investment people.. Have you been following the GME kerfuffle?

[Brute 23]

All this etrade stuff has revolutionized the stock market and I think it will be for the better long term. If you have a smart phone you are in the game.

This is a prime example of it leveling the playing field to some extent.

 

[Nesikep]

All this etrade stuff has revolutionized the stock market and I think it will be for the better long term. If you have a smart phone you are in the game.

This is a prime example of it leveling the playing field to some extent.

Except that Reddit shut down Wallstreetbets for "hate speech"... Sure a strange time for them to do that

 

[Brute 23]

Except that Reddit shut down Wallstreetbets for "hate speech"... Sure a strange time for them to do that

I think that is going to work itself out over time. More sm platforms will start up and some of these will have to decide how much their agendas are worth.

 

[Nesikep]

Lets hope.

 

[shaz]

Hate to say it but I made more money on bynd in the last 30 days then I have ever made it cattle. I have vowed to blow all the revenue on live cattle out of principal.

I guess we can forgive you then

 

[Nesikep]

bit of a language warning for those with sensitivities

 

[SmokinM]

I know very little about trading and have no money in the stock market but I hope they stick it to them hard. We could use a few bankrupt billionaires in this world.

The guy in the last video nailed it though. You are about to find out who the government works for. Unfortunately I bet it doesn't turn out to be the little man. Although maybe it will prove once and for all to everybody how corrupt they are. Bet if you trace the money and ties back on those hedge funds it leads back to the capital building.

 

[Caustic Burno]

I trade and have for years through a broker.
Somebody please explain to me how they were shorting stocks? What is this company they were shorting? Lastly were they shorting on borrowed money or piggy bank?

 

[sstterry]

I trade and have for years through a broker.
Somebody please explain to me how they were shorting stocks? What is this company they were shorting? Lastly were they shorting on borrowed money or piggy bank?

The Hedge Funds were shorting Gamestop. Someone noticed that about 70-80% of the stock was shorted by the Funds (driving the price of the stock artificially low to make a profit on it). A bunch of people on Reddit decided to drive the price of the stock up.

The result was that the Hedge Funds were caught in a short squeeze and they had to deliver on their options. The result was price-skyrocket and Hedge Funds losing tons to cover their losses. I wish I was that smart.

Those wall street folks are all gamers! Some financial and conservative media is outraged, but the little guys were just doing what the insiders have done for years. I do know one Fund had to go borrow money quickly to cover the (big) losses.

For the little guy, never trade on leverage! It will eventually come back to bite you!

 

[Buck Randall]

I trade and have for years through a broker.
Somebody please explain to me how they were shorting stocks? What is this company they were shorting? Lastly were they shorting on borrowed money or piggy bank?

Gamestop is a video game store. It's a failing business because video games have gone to a mostly online download model, and nobody needs to go to a store to buy a physical copy any more. They've closed a lot of stores recently and bankruptcy seems like an eventual certainty. Brokers were trying to short it because it seemed like the stock could only go down.

Some little guys noticed that the big brokers were overleveraged and used the power of social media to get enough small buyers on their side to tip the balance in their favor. It's a perfectly legal form of market manipulation, because there's nothing secretive about it. For now.

 

[Buck Randall]

Here's the ultra-dumbed-down version that helped me figure it out:

 

[Caustic Burno]

The Hedge Funds were shorting Gamestop. Someone noticed that about 70-80% of the stock was shorted by the Funds (driving the price of the stock artificially low to make a profit on it). A bunch of people on Reddit decided to drive the price of the stock up.

The result was that the Hedge Funds were caught in a short squeeze and they had to deliver on their options. The result was price-skyrocket and Hedge Funds losing tons to cover their losses. I wish I was that smart.

Those wall street folks are all gamers! Some financial and conservative media is outraged, but the little guys were just doing what the insiders have done for years. I do know one Fund had to go borrow money quickly to cover the (big) losses.

For the little guy, never trade on leverage! It will eventually come back to bite you!

I fully understand puts, calls and shorts.
I had never heard of GameStop.
I couldn't understood how they drove that stock to catch the hedge funds on their shorts.

 

[Nesikep]

I know very little about trading and have no money in the stock market but I hope they stick it to them hard. We could use a few bankrupt billionaires in this world.

The guy in the last video nailed it though. You are about to find out who the government works for. Unfortunately I bet it doesn't turn out to be the little man. Although maybe it will prove once and for all to everybody how corrupt they are. Bet if you trace the money and ties back on those hedge funds it leads back to the capital building.

He just put out another video.. This time about brokerage firms that are possibly in bed with the short-selling hedge funds.. the brokerage firms made it impossible for people to buy stocks, they could only sell.. So what heppens? Well of course the price goes down, and who benefits? The hedge funds!

 

[C-Ranch]

I heard that some of the brokers (Platforms) froze the stock so nobody could buy or sell. If this is true sounds like broker is trying to save the billionaires and not the little guy. Will be interesting to see how this unfolds.

 

[Atimm693]

I fully understand puts, calls and shorts.
I had never heard of GameStop.
I couldn't understood how they drove that stock to catch the hedge funds on their shorts.

Gamestop rebounded better than anyone thought they would. The release of a new generation of game consoles, and recently one of the big guys from Chewy bought a large part of the company and wants to revamp it. The shorters were betting on Gamestop folding, when it hasn't.

Several trading apps have folded, and are no longer allowing purchases of GME and other WSB favorites. Bunch of BS, wonder when these companies are going to realize that they really pissed off their whole user base and shot themselves in the foot. There are already class action lawsuits and investigations underway.

I can still sell at any time (I use Robinhood), but can not buy any more. Soon as this thing is over with, I'm gone, won't ever use them again.

 

[Nesikep]

I heard that some of the brokers (Platforms) froze the stock so nobody could buy or sell. If this is true sounds like broker is trying to save the billionaires and not the little guy. Will be interesting to see how this unfolds.

they only prevented you from buying! (for as much as I can tell).. selling was just fine

 

[C-Ranch]

Thanks for the correction. I was just reading about Robin Hood when @Atimm693 posted about his account. I believe there is going to be some blow back for many, when all the dust in the corral settles.

 

[Named'em Tamed'em]

Here's the ultra-dumbed-down version that helped me figure it out:

View attachment 1919

It's no wonder I pour concrete and sell beef!! Add in a bitcoin and I'm toast..

 

[sstterry]

I fully understand puts, calls and shorts.
I had never heard of GameStop.
I couldn't understood how they drove that stock to catch the hedge funds on their shorts.

Sorry if this has already been said:

Gamestop is a "Brick and Mortar Store" that was one of the first to only sell video games and accessories. They were really big back in the 2000's- 2010's. With the advent of faster internet being more widely available, most video games are now downloaded directly to the machine rather than buying a physical game. So, there is less need for the brick and mortar storefront.

Gamestop is near and dear to the hearts of many that are now in their 30's and 40's because that is what they remember from their childhood.

As to the Apps stopping the purchase of certain stocks, I understand why they did it. They are trying to protect the people that want to get in at the top of the bubble. I am not saying it is right, but I understand the rationale.

Edit: I just came from r/wallstreetbets (yes I am old and also a Redditor I am more popular there than I am here though ). Nesi was right, those people see this as a moral cause and they do not mind losing. Today is the expiration day on a lot of GME options and they are dead set to hold their line and not take profits.

I also learned that one reason they are so angry is that GME could not open its doors due to the Pandemic and that the Hedge guys were taking full advantage to drive the stock into nothing. The folks on Reddit keep talking about saving 15k jobs that GME provides.

 

[sstterry]

Day traders tend to do fairly well in bull markets but get their a$$ handed to them when things go South. If these are younger people then they never seen anything but a bull market.

I learned my lesson in the Tech crash of 2000. When you overhear people in the grocery store talking about stocks, it is time to go to cash.