[NA]Gamestock[NA]

EdFred said:
Robinhood halted trading on like 8 stocks. I had 1 of them, I was allowed to sell, but not allowed to buy. I sold half to cover my investment, now it's all profit - and it's back down to what I bought at 2 weeks ago.
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Good for you! Your investing ability far exceeds mine. The whole Gamestop thing is of great amusement. A bunch of Reddit folks figure out a way to use the rules (written primarily by the big banks and brokerage houses) to make some money and now some of the big guys have egg on their face - more power to them. Fun to watch but in the big scheme of things really nothing to get all bent out of shape about. Do think it is interesting that there is now a big hub-bub concerning additional regulation, :( This was nothing more than free market capitalism at it's best. Thought it was wrong of Robinhood to close trading on those stocks.
 
Gary said:
Good for you! Your investing ability far exceeds mine. The whole Gamestop thing is of great amusement. A bunch of Reddit folks figure out a way to use the rules (written primarily by the big banks and brokerage houses) to make some money and now some of the big guys have egg on their face - more power to them. Fun to watch but in the big scheme of things really nothing to get all bent out of shape about. Do think it is interesting that there is now a big hub-bub concerning additional regulation, :( This was nothing more than free market capitalism at it's best. Thought it was wrong of Robinhood to close trading on those stocks.
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Oh, it wasn't much $$. My brother messes around with penny stocks. He might hold them for a week he might hold them for six months. But what has been consistent is that as soon as he sells them they spike. So I said, let's experiment...tell me what stocks you have. So I bought them. He sold yesterday. Today up 167% from where he sold. I sold 1/2 almost at peak - up 100% from my cost. He sold another last week. Up 149% today.
 
I think it’s hilarious to see the commoner force (reddit) start a movement to really stick it to the hedge fund guys and show the world their ass (Melvin). it’s funny watching CNBC decry the movement but silent about hedge funds pulverizing weak companies to nonexistence with naked shorting. This hopefully will bring that to a head and give these hedge funds pause into heavy naked shorting.
(Disclosure: have no money in this game)
 
I'm curious where the spotlight will fall after this. Lending more shares than are available to lend, selectively halting trading of specific stocks on your "brokerage", or are we going to outlaw stock-picking clubs now, which, let's face it, is what WSB was, just writ large and in trollish ink.
 
schmookeeg said:
I'm curious where the spotlight will fall after this. Lending more shares than are available to lend, selectively halting trading of specific stocks on your "brokerage", or are we going to outlaw stock-picking clubs now, which, let's face it, is what WSB was, just writ large and in trollish ink.
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The small guy will be made to look bad, because all the news outlet execs have guess who over for dinner on Sunday afternoon.
 
EdFred said:
The small guy will be made to look bad, because all the news outlet execs have guess who over for dinner on Sunday afternoon.
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I try to be optimistic, but that's my assumption as well.

One step closer to the guillotine.
 
That subreddit is outstanding.

Who else could unite Ben Shapiro, Alexandra Ocasio-Cortez, Rashida Tlaib, Ted Cruz, and Donald Trump Jr - short of setting off a dirty bomb on US soil. (not wanting it to get political, just crazy to see all of those people in agreement)
 
I've only heard how these events affect the traders.
How does such an event affect the company involved, including when the stock falls after that peak?
You own Gamestop. What happens during all this?
 
Let'sgoflying! said:
I've only heard how these events affect the traders.
How does such an event affect the company involved, including when the stock falls after that peak?
You own Gamestop. What happens during all this?
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Nothing really happens to the company unless they were leveraging their stock for some reason.
 
Day trading can certainly be profitable. I do it and know quite a few that have quit their jobs and live off of day trading. Most use technical analysis but I use pure price action. I trade with a guy now that made $650k last year using technical analysis. But there is a saying...90% of day traders lose 90% of their accounts in their first 90 days. I'd agree with that. I blew out my first account but kept at it. Learning to trade is easy, it's the emotional side that is hard to control. I'm a very conservative trader and trading my small $25k account I'm up $1400 this week and $3500 since mid December. Not bragging cause I have had bad days and a bad week or 2 in there and I know many others that have done way better than me. But I have been doing this on and off for about 6 or 7 years and have made my share of mistakes and lost a bunch of money along the way. One guy I trade with made $18,000 today.
 
EdFred said:
Nothing really happens to the company unless they were leveraging their stock for some reason.
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I believe market cap affects their ability to borrow money, although I'd imagine most lenders would know what's really going on and adjust accordingly.
 
Now on to the whole GME thing. Robinhood has sold stocks out of customers accounts without their approval or authorization and in some cases has seized funds from accounts suspected of being involved in the GME debacle. These guys did nothing wrong. Shorting a stock is 100% legal. Hedge funds do it every day and absolutely manipulate the market. There has been a class action investigation opened against Robinhood today. To add to that Janet Yellen has said she wants to have a hearing on this whole thing. Citigroup has stated there was illegal activity here. Problem is Yellen has spoken at Citigroup and has earned millions for it. Conflict of interest?

Bottom line is that 'David' did the exact same thing to 'Goliath' the Goliath has been doing to David for years and they are butt hurt over it. I didn't trade GME and made no money from it. I am in NOK right now and traded AMC last week though.

My step-son uses Robinhood but after today he is switching to TastyTrade. I use TD Ameritrade thinkorswim.

Speculation is that after this hearing they will prohibit short selling at least for awhile. I only trade options so trade puts when I think it's going down. In fact I'm holding QQQ puts that expire tomorrow so hoping the market gaps down overnight and so far we are looking good for that. I will sell them right at the open. But I'm also holding calls on DIS, DKNG, NIO and a few others but they expire in March so no rush on those. Today I sold 2 DIS call contracts for 20% win and yesterday sold JKS calls for 60% after 1 week. But I also have PLUG calls and am down quite a bit on those.
 
asicer said:
I believe market cap affects their ability to borrow money, although I'd imagine most lenders would know what's really going on and adjust accordingly.
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It can also affect the careers of the CEO and/or the CFO
 
I don’t believe anyone who understands basic micro economics could be surprised at what happened. The short sellers created nearly unlimited demand and they had to buy no matter what the price. Predictably, the price went way up. I think if someone says that is broken, it is either because they don’t comprehend economics or they cannot abide things not behaving according to their idealistic expectations. Or perhaps they’re gaslighting, but that gets into politics, so we won’t go further that way.

the behavior by Robinhood is way out of line. Whether they have criminal trouble or not, they are probably done because they’re not trusted anymore.
 
optionizerSS said:
Now on to the whole GME thing. Robinhood has sold stocks out of customers accounts without their approval or authorization and in some cases has seized funds from accounts suspected of being involved in the GME debacle.
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I saw the letters and outrage over this, but has it been confirmed that robinhood was liquidating held shares, and not covering margin accounts?

I don't blame them for margin calling right now, but if people just held shares and had them sold out from under them, that's a terrible precedent.

I can't see through most of the 'rabble rabble rabble' to get to the heart of what actually happened here.
 
bflynn said:
I don’t believe anyone who understands basic micro economics could be surprised at what happened. The short sellers created nearly unlimited demand and they had to buy no matter what the price. Predictably, the price went way up. I think if someone says that is broken, it is either because they don’t comprehend economics or they cannot abide things not behaving according to their idealistic expectations. Or perhaps they’re gaslighting, but that gets into politics, so we won’t go further that way.

the behavior by Robinhood is way out of line. Whether they have criminal trouble or not, they are probably done because they’re not trusted anymore.
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Robinhood is going to lose alot of customers over this and I wouldn't be surprised if they go under over this. They are an entry level platform to begin with and many that are serious about trading will move on from them anyway. This will just expedite that. They don't offer much of the functionality that others do.
 
I haven't seen official word of it but here is what I have seen and have no other details.

For their own good? So what if a guy got in at $300 and RH sold it for $200 but then it goes to $500. Is RH going to hand them over the$200/share difference they lost out on? Or vice versa with shorting? Could go either way and a lawsuit may be justified? I'm sure they have fine print covering this scenario in the user agreement but at a minimum they will lose a bunch of customers.

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I wonder if there was a lot of margin involved? If that was the case they could have said no margin purchases? I don't use margin, but own a lot of stocks that must be 100% paid for, no margin allowed. I would think GME would have gotten there.
 
I'd bet there was quite a bit of margin used. I'm thinking some may have mortgaged their houses for it to try to get a piece of this...lol. I'm too conservative and don't chase so I stayed clear. Learned my lesson on that years ago...lol. Partially why I blew out my first account
 
schmookeeg said:
I'm curious where the spotlight will fall after this.
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They’re trying VERY hard to find ANY negative label that will stick to the little guys who were screwing the hedge fund.

Louis covers it very well. I saw four different attempts at least to stick labels on them. Louis got two : “Hackers”...

(There was no hacking whatsoever...)

... and this morning’s attempt to hang it on the “alt-right”.

Any possible negative dog whistle is being blown as hard as the financial media can blow them.


I understand the hedge fund trying to make their foe look bad. Everybody does that.

What I don’t get is the media writing it as if it is in any way serious. But Louis covers that people are tech idiots so “hacking” is the easy low hanging fruit.

(Heck we even have the person here who got the idea that it’s “China” from somewhere, too. Every single transaction is tracked in this thing six ways to sideways and there’s no reason to even speculate about it.)

Anyway. Louis has been on a roll.

This video covers the framing and labeling but he has another out a little while ago saying what the people really want is to see someone truly go to jail for the bad behavior at the hedge funds.

I think he’s naive on that one. Money protects money. One of the CNBC headlines literally said the hedge fund had to raise more capital from “friends” ostensibly to fight these darn annoying peon people who short squeezed them when their pants were around their ankles.

Squeezed em by the tender bits. They didn’t like it. Poor dears.

RobinHood got their butt handed to them, TDA hasn’t nearly as much. They’re both on my “won’t ever do business with” list. I’ve filled out my ever so important SEC “I’m a savvy investor because I say I am” checkbox form. If my broker refused a trade when I call, he wouldn’t be my broker ever again. “Send me the transfer paperwork for my money. Bye.”
 
Oh, someone mentioned how bad fees hit your profits...most brokers are not charging any fees for common stock trades and I only pay .65/contract at TD Ameritrade. So today I made $110 on a quick TSLA scalp of 1 contract. The fees were $1.30 for that trade. It used to be bad a couple of years ago when brokerages were charging $7.99 fee and I think there was also a small fee per contract. There were years where I paid out $5000 in fees. A quick phone call could easily get that reduced to $4.99/trade though if you were a higher volume trader. So far this year I have spent about $125 in fees but I'm up about $2100 so I'm ok with that trade-off.
 
denverpilot said:
They’re trying VERY hard to find ANY negative label that will stick to the little guys who were screwing the hedge fund.

Louis covers it very well. I saw four different attempts at least to stick labels on them. Louis got two : “Hackers”...

(There was no hacking whatsoever...)

... and this morning’s attempt to hang it on the “alt-right”.

Any possible negative dog whistle is being blown as hard as the financial media can blow them.


I understand the hedge fund trying to make their foe look bad. Everybody does that.

What I don’t get is the media writing it as if it is in any way serious. But Louis covers that people are tech idiots so “hacking” is the easy low hanging fruit.

(Heck we even have the person here who got the idea that it’s “China” from somewhere, too. Every single transaction is tracked in this thing six ways to sideways and there’s no reason to even speculate about it.)

Anyway. Louis has been on a roll.

This video covers the framing and labeling but he has another out a little while ago saying what the people really want is to see someone truly go to jail for the bad behavior at the hedge funds.

I think he’s naive on that one. Money protects money. One of the CNBC headlines literally said the hedge fund had to raise more capital from “friends” ostensibly to fight these darn annoying peon people who short squeezed them when their pants were around their ankles.

Squeezed em by the tender bits. They didn’t like it. Poor dears.

RobinHood got their butt handed to them, TDA hasn’t nearly as much. They’re both on my “won’t ever do business with” list. I’ve filled out my ever so important SEC “I’m a savvy investor because I say I am” checkbox form. If my broker refused a trade when I call, he wouldn’t be my broker ever again. “Send me the transfer paperwork for my money. Bye.”
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That guy is really sharp.
 
denverpilot said:
we even have the person here who got the idea that it’s “China” from somewhere, too. Every single transaction is tracked in this thing six ways to sideways and there’s no reason to even speculate about it.
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"the person" doesn't have the idea it's China, the person wants to know how you know it isn't China (or Iran or North Korea, etc.). Millions of "little people" making money off the hedge funds might could be foreign hostile actors to a cynic like "the person" you mention, who doesn't know a THING about trading stocks, and who is just seeking some reassurance.
 
optionizerSS said:
Oh, someone mentioned how bad fees hit your profits...
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If you’re referring to my comment, it was simply “I firmly believe that no amount of attention will permit day traders to profit long term, once transaction costs are figured in.”

I will stipulate that transaction costs are at or near zero on many stock trades, which I applaud as a marvelous change. I remember almost punitive fees at major brokers when buying “odd lots”. I don’t trade options, but even small fees there can ever-so-slightly tilt the odds against someone trying to eke out tiny stock moves in one direction or the other.

And I also applaud your apparent ability to make day trading work. I just caution about how human psychology can influence our perceptions. Most common is “Remembering the hits while forgetting the misses”. I’ll try to find time today to further my comments on investment philosophies...
 
dtuuri said:
"the person" doesn't have the idea it's China, the person wants to know how you know it isn't China (or Iran or North Korea, etc.). Millions of "little people" making money off the hedge funds might could be foreign hostile actors to a cynic like "the person" you mention, who doesn't know a THING about trading stocks, and who is just seeking some reassurance.
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http://reddit.com/r/wallstreetbets

Do they sound Chinese?
 
dtuuri said:
Meh. Too much garbage on that page for my eyes. So, everybody trading GME has to post there?
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No but this is the group driving it - around 2 - 3 million subscribers to that thread with a lot of anger in them for hedge fund companies that manipulate the market.
 
I think they could be foreign Egyptian agents trying to ruin the US Economy... They obviously communicate in hieroglyphics!
 
The GME squeeze is not driven by anger, it's driven by greed.

When this started, there were shorts out for 1.4 times the outstanding shares, meaning there was a demand for every share of stock to be sold to cover the shorts plus 40% more. All the reddit group did was recommend buying up shares cheaply and then collectively holding them to drive the price up more. As the shorts came due, the hedge fund was forced to buy other shares at much higher prices, with their sales driving the prices even higher. It's called a short squeeze and people who timed it right could have turned a 200x profit easily in a matter of days, maybe more. It's too late to get into now because you'll never get that kind of multiple out of it anymore.

I had GME but sold it late last year because they weren't doing anything.
 
bflynn said:
The GME squeeze is not driven by anger, it's driven by greed.

When this started, there were shorts out for 1.4 times the outstanding shares, meaning there was a demand for every share of stock to be sold to cover the shorts plus 40% more. All the reddit group did was recommend buying up shares cheaply and then collectively holding them to drive the price up more. As the shorts came due, the hedge fund was forced to buy other shares at much higher prices, with their sales driving the prices even higher. It's called a short squeeze and people who timed it right could have turned a 200x profit easily in a matter of days, maybe more. It's too late to get into now because you'll never get that kind of multiple out of it anymore.

I had GME but sold it late last year because they weren't doing anything.
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Don't be so sure. If the posts are taken at their word from the r/ thread, there's a bunch saying they don't care if they lose everything as long as they can screw over the hedge funds that over shorted.
 
EdFred said:
Don't be so sure. If the posts are taken at their word from the r/ thread, there's a bunch saying they don't care if they lose everything as long as they can screw over the hedge funds that over shorted.
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And in large numbers they don’t lose much individually. That’s the truly interesting part of it.

“Would you pay $1000 to help destroy a predatory hedge fund? Operators are standing by! Call now!” LOL.

I got a belly laugh that all Marketwatch could come up with this morning was this... “careful, you might have to pay taxes on gains”! Hahaha.
 
A lot of little guys are still going to get screwed on this. The Melvin Capital hedge fund with the large short position in GME got out on Tuesday afternoon when the stock was $140 or so. But GME continued to run up the rest of the week and was at $470 at one point yesterday. Some people are making a lot of money selling at $470, but that means someone is also buying at that price and I can't see how they will avoid losing big.
 
ColoPilot said:
A lot of little guys are still going to get screwed on this. The Melvin Capital hedge fund with the large short position in GME got out on Tuesday afternoon when the stock was $140 or so. But GME continued to run up the rest of the week and was at $470 at one point yesterday. Some people are making a lot of money selling at $470, but that means someone is also buying at that price and I can't see how they will avoid losing big.
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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."
 
denverpilot said:
[snip]

“Would you pay $1000 to help destroy a predatory hedge fund? Operators are standing by! Call now!” LOL.

[snip].
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I laughed out loud at that! I can hear the announcer voice in my head!
 
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