[NA]Gamestock[NA]

vkhosid said:
That's the whole point, no? Especially if those buying at $470 are the hedge funds trying to cover their shorts..

As a wise man once said to me, as it relates to stocks...."you never want to be short and uncovered."
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haha I like that quote.

I haven't followed all the hedge funds with short positions, but at least Melvin Capital is already out, so those buying at $470 might not be the hedge funds anymore, but the "small guys" who are late to the party and will be left holding the bag when it collapses.
 
So that's an interesting point. Those left "holding the bag", who were unable to cover their naked shorts... what's in that bag for them? Surely they can't pay infinite dollars for shares to cover.

Is the net effect that someone just stole shares from someone else and could not give them back?

I wish I was more versed in high finance to understand exactly how this unwinds
 
schmookeeg said:
So that's an interesting point. Those left "holding the bag", who were unable to cover their naked shorts... what's in that bag for them? Surely they can't pay infinite dollars for shares to cover.

Is the net effect that someone just stole shares from someone else and could not give them back?

I wish I was more versed in high finance to understand exactly how this unwinds
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Hopefully Gamestop was in a position to recapitalize on these events and can turn it's story around. This group of redditors should be left alone by the government, what they did is no more wrong than the Hedge fund shorting stocks. Robinhood and other companies who decided to stop any transactions here should be sued into oblivion. F them. I wish I knew this was going down.
 
I'm waiting on Robinhood to release the hold on my funds. Evidently when you sell you have to wait 2-3 to withdraw the money - everything is sold, even if I took a little bit of a loss on individual stocks. (Still up overall though) They lost my business.
 
EdFred said:
I'm waiting on Robinhood to release the hold on my funds. Evidently when you sell you have to wait 2-3 to withdraw the money - everything is sold, even if I took a little bit of a loss on individual stocks. (Still up overall though) They lost my business.
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Float, making money off your money. Coinbase does the same sort of thing.
 
EdFred said:
I'm waiting on Robinhood to release the hold on my funds. Evidently when you sell you have to wait 2-3 to withdraw the money - everything is sold, even if I took a little bit of a loss on individual stocks. (Still up overall though) They lost my business.
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How long does it take Robinhoods trades to make it through their clearinghouse? I could easily be mis-informed, but don't know of a brokerage that instantly credits your account when you sell a stock.
 
So here is what happened overnight. Robinhood (and a few other brokers) restricted buying GME but you could sell it. Think about that. If you have a bunch of houses for sale but nobody is allowed to buy them then price will obviously go down. Well after hours yesterday GME dropped to about $120/share, allowing the hedge funds to cover their short much cheaper. Manipulation to save the hedge funds?

I had a tough day. My discipline slipped. Lost $700 today but still up $800 for the week and had a very good month. 3rd month in a row with very good profits and 4 of the last 5 were each my best 4 ever. First time I have ever had 3 green months in a row
 
Listen, I don't want to give the impression that trading is easy. It is the hardest thing I have ever done but the longer I do it the easier it gets. I have taken my lumps over the years. But it can be done if you are dedicated and committed to it
 
Gary said:
How long does it take Robinhoods trades to make it through their clearinghouse? I could easily be mis-informed, but don't know of a brokerage that instantly credits your account when you sell a stock.
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They allow me to instantly rebuy or put margins in on any other stock I just can't have the money they allow me to instantly re-buy or put margins in on any other stock I just can't have the money for a few days.
 
Since Robinhood clears through large hedge funds so that they can front run the trade, I wonder if Robinhood got pushed into their position.

At $470 we were seeking the greater fool I think.
 
Common stocks require 2 days for funds to settle. I have traded with Schwab, e-Trade and TD Ameritrade. Way back when I started it was 3 day settlement but they changed it maybe 5 years ago to 2 days. I can't remember if it is a FINRA rule or broker rule but 99% sure it is a FINRA rule so wouldn't matter who you trade with. So if you sell a stock you have to wait 2 days for funds to settle (I'll get to the caveat here). I'd imagine if you are going to withdraw your funds nobody will just hand you funds from the brokerage while they wait for your funds to settle so I'm guessing all brokerages will require you to wait to withdraw your funds. Now if you were all cash already then maybe they might not make you wait. Options funds settle the next morning. I haven't traded common stock in several years so I'm not 100% up on the settlement rules anymore.

Now the caveat. If you have a margin account it still takes 2 days for funds to settle BUT your broker 'lends' you those funds to trade with while waiting on yours to settle.

There are 2 different types of accounts, cash and margin. If you have a margin account you are required to adhere to PDT rules unless you have over $25,000. PDT rule is Pattern Day Trader. Under PDT rules you can only make 3 round trips (day trades) in a 5 day rolling period. If you have over $25,000 this rule does not apply. If you have a cash account PDT rule does not apply BUT you can only trade with settled funds. So if you have $5000 you can make 5 $1000 round trips in a day and be fine but once your $5000 is used up then you are done until your funds settle. With margin you can't make 5 round trips but your funds are available immediately because your broker lends you those funds. Most are margin by default because they can charge you interest on these funds they 'lend' you. Both of my accounts are cash accounts because I trade options and don't want to worry about PDT. I do want to start trading spreads and that requires margin so I will be having my IRA account switched to margin soon. That one has enough in it that I don't have to worry about PDT. My other account does not have enough so that one will stay cash.

These rules apply to U.S. based brokerages. Other countries have their own rules so not familiar with those. All that said, call your broker to verify all of this if you plan to get into any of this.
 
asicer said:
Good idea to follow the money. In this case, RH gets it via payment for order flow.
https://www.vice.com/en/article/qjp...-funds-like-citadel-its-users-are-the-product
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That was enlightening.

Another article I forgot to copy here noted that RH was likely terrified of the overbought stock crashing because of so many of their clients trading on margin while things settled.

It insinuated (but I haven't checked) they're themselves poorly capitalized to survive issuing that much credit and would also get squeezed in a whole different way.

Debt creates slaves. So it defines the answer to the question -- Who's your master? RH has to answer to theirs.

Sent from my LM-G850 using Tapatalk
 
asicer said:
Good idea to follow the money. In this case, RH gets it via payment for order flow.
https://www.vice.com/en/article/qjp...-funds-like-citadel-its-users-are-the-product
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Hmmm... you poor souls...

"The financial system has many moving parts, and the day traders on Robinhood who imagine themselves as literal Robinhoods are really just grist for a larger mill. It’s worth noting here that whatever profits a few day traders end up realizing on GameStop, the huge firms that own the majority of GameStop stock will likely come out on top.

Robinhood may bill itself as an app for the little guy, but its platform, perhaps more than any other, is a great reminder that the stock market is a casino—which means you cannot forget that the house always wins."​

...always destined for failure: Jackie Gleason on The Ed Sullivan Show - YouTube
 
dtuuri said:
...a great reminder that the stock market is a casino—which means you cannot forget that the house always wins."
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I will stipulate that there are those who treat the market in a manner indistinguishable from gambling. I was involved with a compulsive gambler in the past, and GamAnon - the gambling equivalent of Alcoholics Anonymous- discourages compulsive gamblers from “playing” the market. I have little doubt day traders have the same endorphins stimulated as they trade in and out of stocks or options looking for the chemical “hit” of the big win.

Then again, there’s a large class of investors that I think it would be disingenuous to classify as “gamblers” playing in a “casino”. I have utility stocks in my portfolio I’ve held for 30 years or even more, happy to have dividends regularly augmenting my income, or available for reinvestment, and virtually all have appreciated over the years as well. Fair to say I don’t get any kind of “rush” from such investing, just a feeling of satisfaction and a more comfortable life in retirement.

In fact, last year I did not make a single stock sale, so if I was a gambler I’d be a pretty bored one.
 
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I do believe there is a large faction that do trade for the rush but I don't think those people last long. When you trade with emotion you are going to make bad decisions. If I feel anxiety or nerves when I enter a trade then I know I went in too big. I trade small sizes, typically no more than about $700 per entry. I feel no nerves or anxiety at that level. Read any trading psychology books and they will all tell you that you have to remove emotion. I'm not sure you can remove 100% of emotion but as long as it does not affect your decision making then you are ok. Another important factor is you need to have a plan before you enter a trade. You need to know your target and your stop before you get in. Often times I don't have a solid target but know that when momentum slows I will get out but I always have a stop in mind before I enter. Otherwise you tell yourself 'well it might turn here so let me hold a little longer'. Know your stop and stick to it. I believe most of these RH GME guys aren't sound traders and will likely lose whatever they made on this thing. Hopefully some pull most of that money and pay off tuition or use as a down payment on a house or something constructive.
 
dtuuri said:
Hmmm... you poor souls...

"The financial system has many moving parts, and the day traders on Robinhood who imagine themselves as literal Robinhoods are really just grist for a larger mill. It’s worth noting here that whatever profits a few day traders end up realizing on GameStop, the huge firms that own the majority of GameStop stock will likely come out on top.

Robinhood may bill itself as an app for the little guy, but its platform, perhaps more than any other, is a great reminder that the stock market is a casino—which means you cannot forget that the house always wins."​

...always destined for failure: Jackie Gleason on The Ed Sullivan Show - YouTube
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...
9488733a1bccf55ab54bae59cb34d318.jpg
 
Well.. this showed up on Twitter and apparently it actually happened

Screenshot_20210130-172830.png


if this is offensive please feel free to delete the post but it was related to the thread and this is an aviation site after all so I figured it was appropriate to share...

"I don't even live there" hahah
 
Tantalum said:
Well.. this showed up on Twitter and apparently it actually happened

View attachment 93678


if this is offensive please feel free to delete the post but it was related to the thread and this is an aviation site after all so I figured it was appropriate to share...

"I don't even live there" hahah
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I wish I'd known it was coming; I might have been able to see it with binoculars.
 
PaulS said:
Hopefully Gamestop was in a position to recapitalize on these events and can turn it's story around. This group of redditors should be left alone by the government, what they did is no more wrong than the Hedge fund shorting stocks. Robinhood and other companies who decided to stop any transactions here should be sued into oblivion. F them. I wish I knew this was going down.
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AMC did exactly that this week. Their own stock that they owned they gave to their creditors in exchange for debt they owed. Creditors then took that stock and converted it to cash (sold). Creditors are now more whole, AMC is more viable.
 
I read somewhere that Robinhood efffed up by not providing the real reason for suspending the buy transactions.
But the article provided no details except they ran into a regulatory issue dealing with the fact they clear through other companies.
1. Anyone have info if this is true?
2. Anyone have details of what reg?

Tim

Sent from my HD1907 using Tapatalk
 
Either way in a couple hours they have completely destroyed their brand value.. regardless of the reason, to take a platform who's entire goal was based on "democratize finance for all" and then suddenly restrict trading when millions have an opportunity to ride a stock looks awful..

I've always been skeptical of them and don't trust Vlad nor the whole relationship with Citadel (which I don't understand how it can be legal)..
 
I told my step-son months ago that he needed to switch to a real platform. He just opened a TastyTrade account but hasn't transferred his funds yet. I have never used RH
 
Apparently Robinhood had a cash call they couldn't meet and were cutoff from trading.

Today silver is the recipient of attention from social media. Up 7% currently, down from 10% earlier.
 
AKiss20 said:
And yet they only stopped trading on a few stocks, and only on buying not selling. Convenient for them and their primary income source Citadel...
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Yeah, the email they sent out was a bunch of non-speak technobabble. Look, you have my money, cash, in an account. You put it where I tell you. 'm not doing margins/shorts/calls. Just a simple buy, and you *can't* do it but you can sell it? BS. Already moved 1/2 my money out. Waiting for the other half to clear.
 
AKiss20 said:
And yet they only stopped trading on a few stocks, and only on buying not selling. Convenient for them and their primary income source Citadel...
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I'm in no way defending or even supporting them. Allowing sales actually improved their balance sheet, so that was logical. Selecting only some stocks? Who knows, but I would guess it was volume based.
 
EdFred said:
Yeah, the email they sent out was a bunch of non-speak technobabble. Look, you have my money, cash, in an account. You put it where I tell you. 'm not doing margins/shorts/calls. Just a simple buy, and you *can't* do it but you can sell it? BS. Already moved 1/2 my money out. Waiting for the other half to clear.
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Prohibiting purchases but not sales sure looks like market manipulation to me.
 
ebetancourt said:
I'm in no way defending or even supporting them. Allowing sales actually improved their balance sheet, so that was logical. Selecting only some stocks? Who knows, but I would guess it was volume based.
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Regardless of whether it improved their balance sheet or not, allowing only selling and for only a few select stocks can be argued to be market manipulation. There are SEC complaints to that effect as well as class action lawsuits against Robinhood already in the works.

A lot of smoke, not necessarily definitive proof of fire, but a helluva lot of smoke IMO.
 
Robinhood got limited by the rules on their outstanding unsettled debt.


Use a broker that doesn't have a liquidity problem and lies about it on TV.
 
ebetancourt said:
I'm in no way defending or even supporting them. Allowing sales actually improved their balance sheet, so that was logical. Selecting only some stocks? Who knows, but I would guess it was volume based.
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Balance sheet is going to take a nice hit in the long run when a huge chunk of their customer base (like @EdFred ) abandons them for their competitors. The quarterly P&L will definitely feel some impact.
 
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